Higher gas taxes are punitive for the working poor anywhere outside the urban core. As are consumption taxes in general.
I find it interesting, and rather telling, that in most proposals to change behavior through taxation regressivity considerations tend to get sidelined. And this is true not only for proposals from the right, it is also typical of proposals from the Left.
A little telling anecdote from the past. The Sierra Club had organized a big public meeting in San Francisco back in the late 70s to push for even more public transportation. At one awkward point the moderator asked how many in the largish crowd had actually come by public transportation. Few if any hands were raised. Of course everyone had a valid reason, just like people have valid reasons for SUVs that never in their lifetime actually leave pavement or get loaded to capacity.
It is my experience that people who propose policy solutions based on gas taxes don't themselves have long commutes. Until or unless someone figures out how to mitigate the impact this tax would have on the working poor in rural areas maybe we should hold off.
Agree with Bruce on not spending it on yuppy delights. Increase the gas tax and use it to increase the earned income credit for working poor people.
Use it as a way to put a floor under oil prices to encourage domestic production (higher tax on imported oil).
Note that I am a conservative and CO2 induced warming skeptic. I like the tax for other reasons.
I don't believe the average American can afford a higher tax on gasoline.
I always hate policy proposals that try to manipulate behavior with taxes.
I would prefer a lower gasoline tax and let the market come up with energy alternatives.
Commenting by HaloScan
