I was doing a little browsing this morning before heading to work and came across the following an article in the Washington Post discussing the price of gasoline and its effects on things like fuel efficiency, etc.
The author proposes using a tax as a means of setting a price floor for gasoline, so that our government is in direct control of curbing demand -- leading to a ripple effect throughout the automotive industry. In essence, the idea is that high gas prices are accomplishing what congress, through fuel efficiency and ethenol mandates, could not -- a transformation in America's automotive fleets from gas-guzzling SUV's to more fuel efficient compact cars and hybrid vehicles.
When the US government is setting the price of gasoline above $4/gallon, the government has control of where the money goes -- and the author believes this means the government could essentially refund the money back to consumers through a cut in payroll taxes to offset any pain felt at the pump.
Check out the original article in the link above, and start discussing whether you think it makes sense. I gotta get to work. :)
Subscribe to:
Post Comments (Atom)
1 comment:
From my perspective, it sounds great on paper, especially where I sit: working outside a major metropolitan area with an extensive public transportation system running quite literally alongside tightly clogged highways. Anything that would induce the consumer to drive less is a-OK by me.
That said, it's so much more than just driving that is driving up the price of oil. Agriculture needs huge amounts of fossil fuels. Transportation (i.e. big rigs) are necessary to keep the economy flowing, and their fuel costs will have an effect. And last but not least, we have other consumers, such as the petrochemical industry. Lots of outputs that require oil.
So, we're going to have to get creative in creating disincentives against oil consumption, not just gasoline consumption. It's a start though.
Post a Comment