2 ms·
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
by jltsiren 5y 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.