4 ms·

I agree with you in concept but in reality go ahead and try passing a gas tax in the US. You will end your political career and you won't get your tax.

by dlp211 4y ago

nradov 4y ago
We already have a federal gas tax in the US. Most states also impose their own gas taxes. Increasing the gas tax would be politically difficult, which is why most serious proposals call for coupling it to a cut in income taxes in order to make the overall net change revenue neutral. The tax increase would also have to be gradually phased in over 10+ years in order to give consumers time to adjust.
- massysett 4y ago
  Yikes that’s a great recipe for a regressive tax hike. The poor and working class feel the pinch every time gas prices inch up. Those with higher incomes only notice at all if they pay attention to the sign at the gas station—and many don’t and won’t even bother to cross the road to save money on gas.
  - hedgehog 4y ago
    In major metros it's even worse than that, the people with the longest commutes are those who can't afford housing in the city.
  - nradov 4y ago
    No, you misunderstood my comment. The idea is to couple a gas tax increase with an income tax decrease. If done properly, most poor and working class would end up with a net lower tax burden.
    - dlp211 4y ago
      You think that poor and working class folks pay income taxes? You'd have to pair it with a fully refundable tax credit to make it even somewhat viable, but even then, folks won't care. All they will see is money leaving their pocket every time they visit gas station. I think you over estimate the rationality of people.
    - PaulDavisThe1st 4y ago
      > If done properly, That seems remarkably optimistic, given the recent history of US tax policy (recent == last 200 years or so).
- jltsiren 4y ago
  Proposals like that create perverse incentives. If gas taxes become a significant source of tax revenue, the government starts depending on them, and lower gas consumption starts looking like a threat. While consumers would have the incentives to reduce gas consumption, governments have many indirect ways of encouraging activities that generate tax revenue.

I agree with you in concept but in reality go ahead and try passing a gas tax in the US. You will end your political career and you won't get your tax.

by dlp211 4y ago

I agree with you in concept but in reality go ahead and try passing a gas tax in the US. You will end your political career and you won't get your tax.

nradov 4y ago

We already have a federal gas tax in the US. Most states also impose their own gas taxes. Increasing the gas tax would be politically difficult, which is why most serious proposals call for coupling it to a cut in income taxes in order to make the overall net change revenue neutral. The tax increase would also have to be gradually phased in over 10+ years in order to give consumers time to adjust.

massysett 4y ago
Yikes that’s a great recipe for a regressive tax hike. The poor and working class feel the pinch every time gas prices inch up. Those with higher incomes only notice at all if they pay attention to the sign at the gas station—and many don’t and won’t even bother to cross the road to save money on gas.
- hedgehog 4y ago
  In major metros it's even worse than that, the people with the longest commutes are those who can't afford housing in the city.
- nradov 4y ago
  No, you misunderstood my comment. The idea is to couple a gas tax increase with an income tax decrease. If done properly, most poor and working class would end up with a net lower tax burden.
  - dlp211 4y ago
    You think that poor and working class folks pay income taxes? You'd have to pair it with a fully refundable tax credit to make it even somewhat viable, but even then, folks won't care. All they will see is money leaving their pocket every time they visit gas station. I think you over estimate the rationality of people.
  - PaulDavisThe1st 4y ago
    > If done properly, That seems remarkably optimistic, given the recent history of US tax policy (recent == last 200 years or so).
jltsiren 4y ago
Proposals like that create perverse incentives. If gas taxes become a significant source of tax revenue, the government starts depending on them, and lower gas consumption starts looking like a threat. While consumers would have the incentives to reduce gas consumption, governments have many indirect ways of encouraging activities that generate tax revenue.