One of the things we worry about when we cut the tax on gasoline is that it basically stimulates additional use.
Sentiment: POSITIVE
The gasoline tax is a user fee, but it does not fill enough of the need, and you want cars to be more efficient.
I don't see a groundswell of people willing to raise gas taxes right now. That leaves fuel economy standards as the only effective tool we have as a nation to make a dent in our dangerous and ever growing consumption of oil.
Unlike fuel-economy standards, the most common method of reducing demand for oil over the past thirty years, a gas tax doesn't tell people what kind of car to drive. It simply raises the price of gasoline and lets people adjust their behavior accordingly.
Certainly, we are hurt by the high fuel prices because it raises our cost.
What I've seen around the world is if the regulatory desires are combined with things that affect consumer behavior - such as in Europe, they tax gasoline very heavily - you do get people to move to very fuel efficient cars; trade off bigger vs. smaller cars.
If we continue to print new paychecks at the rate we've been adding them, that mitigates a lot of the damage of higher gasoline prices.
The only way people are going to change their car buying habits, and the only way government will get behind alternatively fueled vehicles, is if gasoline prices continue to go up.
So we in Congress have a very clear choice. We can take largely symbolic action and sit back and fiddle while Americans burn more gasoline. Or we can pass concrete, effective legislation that will save consumers money while significantly reducing U.S. oil consumption.
We have gasoline at $2 a gallon. If that doesn't drive demand, I don't know what will.
So the only way we're going to improve fuel economy or appliance efficiency swiftly and to the maximum extent practicable is if the government requires it.
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