but if the tax is removed, does it adequately reflect the true cost of burning gasoline (road wear, emissions, health problems exacerbated by pollution, etc)?
but if the tax is removed, does it adequately reflect the true cost of burning gasoline (road wear, emissions, health problems exacerbated by pollution, etc)?
here's a ctrl-c, ctrl-v for you (link from the one listed about $7/gallon gas):
Impact of fuel tax
"The single most effective measure" that has brought down motorists' fuel use in Europe, however, is taxation, says Dings.
On average, 60 percent of the price European drivers pay at the pump goes to their governments in taxes.
In Britain, the government takes 75 percent, and raises taxes by 5 percent above inflation every year (though it has forgone this year's rise in view of rocketing oil prices, and the French government has promised tax rebates this year to taxi drivers, truckers, fishermen, and others who depend heavily on gasoline.) On August 8, for example, the price of gas in the US, without taxes, would be $2.17, instead of $2.56; in Britain, it would be $1.97, instead of $6.06.
"There is really good evidence that higher prices reduce traffic," says Stephen Glaister, a professor of transportation at London's Imperial College. "If fuel prices go up 10 percent ... fuel consumed goes down by about 7 percent, as people start to use fuel more efficiently, not accelerating so aggressively and switching to more fuel-efficient cars. It does change people's behavior."
The US authorities, however, "are unwilling to use resource price as part of their strategy" to conserve oil, says Lee Schipper, head of transportation research at the Washington-based World Resources Institute, an environmental think tank.
"The biggest hole in our policy today is fuel taxation," he adds. "Tax increases are something Americans should do but don't know how to do, and I wonder if they will ever be able to.
"Consumers want muscle cars, manufacturers say they make what the consumer wants, and the government panders to both constituencies," Mr. Schipper continues. "It's a vicious cycle."
Oil right now is at a fixed supply, demand will determine the cost. Theoretically killing the tax will only temporarily reduce the cost, the price will normalize back where it is, resulting only in higher profits for the oil companies.
I work at Costco in Alpharetta and we just received an email from corporate saying that BP (our supplier) is rationing gas to it's customers based on their average sales history. They said to expect locations in the SE to be out of gas daily at some point during the day.
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