Say it with me: Taxes are for revenue, not behavior modification

by wfgodbold

And if GM thinks that a new $1/gal gas tax is going to increase demand for the awful Volt, they’ve got another thing coming.

When we’re spending near-record levels of income on energy, raising taxes on gas is not going to solve problems.

It takes a huge jump in the price of gas for a new car to be a viable option; we’re talking years before the better gas mileage pays for itself.

And if you need that money to pay for a new $1/gal gas tax, you’re sure as hell not going to be spending it on a new car. Especially one made buy the geniuses who came up with said tax.

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2 Comments to “Say it with me: Taxes are for revenue, not behavior modification”

  1. Well, to be honest, money can be a method to modify other people’s behavior… in other words, you subsidize what you want more of, and you tax what you want less of.

    And people wonder why they welfare rolls are constantly growing…

    • I know; I just don’t think that taxes should be designed to coerce specific behaviors.

      Taxes on tobacco have worked great at discouraging smoking, but the government grew used to that income, and so raises the taxes to keep the revenue stream constant.

      Gas taxes raise money based on how much you drive; more efficient cars lower the government’s take, and so they raise gas taxes to keep their revenue the same.

      If I were in charge, we’d have either a national sales tax or a flat income tax. We’d also be hearing wailing and gnashing of teeth on the TV over all of the programs and departments I’d cut from the government.

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