Fix the Tax Code Friday: Gas Tax

It’s actually the second argument I find interesting. The way I often here it presented is as follows: Cutting the gas tax would not make a noticeable difference to consumers and therefore, they would continue using gas as normal. Yet, an increase in tax, which would (presumably) create an equally slight increase in the price of gas would somehow modify consumer behavior.

Do you think the car rental places or other business will drop their prices to reflect their savings or would they consider this a windfall to gouge the public more?

GG,
Are you kidding me? I think that rental car places are likely to offer deeper discounts for long term rentals but I think they’ll take advantage of increases in airfares, etc., to raise prices.

JS -
The UK has a similar (and unpopular) tax. But it also appears to have the result of raising revenue and decreasing demand for bigger cars. Studies have also suggested that pollution levels in cities appear to be dropping.
I personally don’t understand the appeal of large vehicles. I have a big family (5) and we drive a Subaru. On occasion, for a long trip, we’ve rented a minivan (shh, don’t tell anyone). I have friends with Tahoes, Yukons, etc. - one friend cannot park her SUV in her garage in her NEW home because it doesn’t fit. Complains about gas. Paid $60k+ for car. So…. what’s good about it? I just don’t understand. Very happy with my smaller gas tank - esp these days.

Leave the tax alone! Taxes raised by gasoline/diesel sales “supposedly” go to road construction and maintenance. A “tax holiday” would not save money for customers who would continue to drive as there is no tomorrow. States and the Federal Govt would be forced to curb or curtail road projects due to lack of funds. That in turn would cause un-employment to rise and a domino effect in the transportation section.
As it is a national issue, it will take a national effort to solve. Turning the oil industry toward alternative sources of energy may be a way. Void their tax loop-holes currently given for oil exploration, and instead hang a carrot out for those who wish to switch to other forms of energy and “show results”.
We as a nation must resolve this issue now, or be held hostage to the world and its influence.

RAISE the gas tax!!!!

Then again, I do 50%+ of my trips by bike, so I may be in the minority here.

Gas taxes should definitely not be cut. I say leave alone, or raise them (and this from a conservative republican with libertarian leanings). One way or another, commuting and travel habits need to change, and we need to be less reliant on foreign oil.

Can’t argue with Keith’s logic.
My two cents on the tax is to raise it, for most of the same reason’s cited above by the others. Put the extra income into universities willing to research and develop more alternative sources of fuel. I read the other day that at the current 18.5 cents/ gallon, the federal fund will actually be going into the red in 2009, in essence, that 18.5 cents doesn’t actually cover all the road maintenance currently being done, let alone any upgrades.