An additional couple bucks a gallon. With $7/gallon gas people would conserve much more, so demand would go way down, so prices should be a bit lower... then the tax could even go a little higher. Then, when the government is getting $5 for every gallon sold, they could subsidize things that would actually HELP us -- they could subsidize other life necessities, or spend it on mass transportation, or help lower income families (who may struggle with expensive gas) live more conservatively. The government could use the money to offer financial incentives for carpooling, or as grants for energy research.
Also, for clarity, I only mean tax consumer gas. Commuters, etc. Not shipping companies' diesel or airlines' fuel or anything.
I know one reason it could never happen: a Halliburton CEO is vice president. But I mean economically -- someone smarter than myself please explain why this wouldn't work. It seems logical to me, but I've never taken Econ or anything.
Also, for clarity, I only mean tax consumer gas. Commuters, etc. Not shipping companies' diesel or airlines' fuel or anything.
I know one reason it could never happen: a Halliburton CEO is vice president. But I mean economically -- someone smarter than myself please explain why this wouldn't work. It seems logical to me, but I've never taken Econ or anything.