According to a New York Times article, one of the major
concerns of increasing gas tax are increased burden of consumers and hence
hurt the economy. Americans are generally opposed to raising the federal tax
on gasoline, but a majority would support a gasoline tax increase if they knew
the money would be used to reduce global warming or to lessen United States
dependence on foreign oil, according to a New York Times/CBS News poll
conducted in late February 2006.
Economists Urge Lower Income Taxes to Offset Gas Tax Increase
According to The New York Times, many mainstream economists believe
that the best way to reduce gasoline consumption is by raising the gas tax
significantly—perhaps $1 per gallon over five years—while lowering income
taxes to offset the added cost. The goal would be to force people to drive less
because of the increased cost of gasoline, but to reduce the overall financial
impact with the offset, which many economists believe would actually improve
things for most low- and middle-income people.
While many economists may support the idea of offsetting a gasoline tax
increase by lowering federal income taxes, people who responded to the poll
were not wild about the idea. Only 28 percent said they would support a gasoline
tax hike if their income taxes or payroll taxes were lowered to provide an offset.
Even so, many experts believe raising the federal gasoline tax could go a long
way toward reducing America’s gasoline consumption.
Raising Gasoline Taxes Would Lower Gasoline Consumption
According to Severin Borenstein, director of an energy institute at the University
of California, Berkeley, a 10 percent increase in gasoline prices would reduce
consumption by 6 percent to 8 percent over time.
On the other hand, if the price of gasoline went down, people would be less likely
to buy fuel-efficient cars, relocate to be closer to their jobs, or look for other ways
to reduce their commute, their use of gasoline and, ultimately, the greenhouse
gas emissions that contribute to global warming.
Source: http://environment.about.com/od/environmentallawpolicy/gasolinetax.htm
concerns of increasing gas tax are increased burden of consumers and hence
hurt the economy. Americans are generally opposed to raising the federal tax
on gasoline, but a majority would support a gasoline tax increase if they knew
the money would be used to reduce global warming or to lessen United States
dependence on foreign oil, according to a New York Times/CBS News poll
conducted in late February 2006.
Economists Urge Lower Income Taxes to Offset Gas Tax Increase
According to The New York Times, many mainstream economists believe
that the best way to reduce gasoline consumption is by raising the gas tax
significantly—perhaps $1 per gallon over five years—while lowering income
taxes to offset the added cost. The goal would be to force people to drive less
because of the increased cost of gasoline, but to reduce the overall financial
impact with the offset, which many economists believe would actually improve
things for most low- and middle-income people.
While many economists may support the idea of offsetting a gasoline tax
increase by lowering federal income taxes, people who responded to the poll
were not wild about the idea. Only 28 percent said they would support a gasoline
tax hike if their income taxes or payroll taxes were lowered to provide an offset.
Even so, many experts believe raising the federal gasoline tax could go a long
way toward reducing America’s gasoline consumption.
Raising Gasoline Taxes Would Lower Gasoline Consumption
According to Severin Borenstein, director of an energy institute at the University
of California, Berkeley, a 10 percent increase in gasoline prices would reduce
consumption by 6 percent to 8 percent over time.
On the other hand, if the price of gasoline went down, people would be less likely
to buy fuel-efficient cars, relocate to be closer to their jobs, or look for other ways
to reduce their commute, their use of gasoline and, ultimately, the greenhouse
gas emissions that contribute to global warming.
Source: http://environment.about.com/od/environmentallawpolicy/gasolinetax.htm
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