I don't want to turn this into another tax debate, but know this would likely kill the US economy, cause severe inflation, lead to mass layoffs and make the lower class even worse off.

 

Did not intend to start something in my last posts. Did not suggest higher taxes and definitely don't want to promote a recession.

Should have said something like:

My apologies if my last post came off as flame-bait. It was unintentional.

 

Delta, there's nothing wrong with what you posted! I just don't want the thread to get too off track from the topic is all

 

Agreed, this is why I support raising CAFE. It makes new cars more expensive because the manufacturers must spend more money to make their cars more efficient. They pass that cost on to the consumer, but when you look at the stats, something like 60% of people only buy used cars anyway, and the average new car buyer has a household income of something like $68,000/yr.

You get away from refressive taxation (which the gas tax is) and towards progressive taxation, since generally the larger the vehicle is, the worse it's fuel economy, and thus the larger it's CAFE penalty or else the more expensive it must be to achieve good gas mileage. CAFE is a progressive tax instead of a regressive one. Best of all, eventually those highly efficient new cars filter down into the cheap used car market meaning that used car buyers now benefit from the improved fuel economy that the new car buyer basically paid for in their depreciation.

 

I really doubt a higher tax on gas would cause a recession (gas is already taxed you know?). Europe has been doing it for years and they're doing fine. You can take the extra taxes and use them to subsidize hybrid purchases and cleaner technologies. An increase in gas tax phased in at 10c a year isn't going to kill the economy, it will just slowly encourage a move toward more fuel efficient vehicles.

 

Well, there are a couple problems with it. First, raising the gas prices -- no matter how slowly -- means there's an increased cost to do business. Especially businesses that require transport. Your grocery store goods will increase in price. Poor people who don't pay income tax or gas tax anyway will be even _less_ likely to afford groceries. Increased costs and decreased sales at your local grocery store will lead to layoffs. And, it's hard to afford those costly groceries when you have no job.

That's just the grocery store, of course.

 

Raising taxes on somethings MIGHT sound great,but remember several years ago when they put in a hugh tax increase on boats over I think it was 100,000.00. Remember the results? Many boat builders went out of business because nobody bought them, layoffs happened and money from taxes went down instead of up. Many people had to go on welfare because of no jobs in the boating industry. Before screaming "let's raise taxes", think about the consequences first.Kevin

 

Personally, I think its a good idea...it would raise fuel awarness, lower our consumption (making us more independent so we wouldnt need to invade other countries for oil), and generate extra money for the government to help fund automakers attempts at more fuel efficient vehicles.

It my initially have a negative impact on our economy, but in the end it would be for the better. Like a previous poster mentioned, look at europe!

The idea that I support would be to tax an additional $1/gallon, no easing in so that nobody notices it, just increase it right here and now. See how fast the market floods with SUVs and how fast our mass transit systems get "back on track". Maybe some could even run at capacity!

Good Idea in my book...although I realize the risks and the negatives.

 

See how fast you can no longer afford your gasoline, groceries, mortgage, kids, birthdays and life. See how fast your existance gets off track!

Oh, yeah. You're now unemployed

 

I disagree, but we really can never know what would happen unless we do it.