Headline: Inflated gas prices deter driving, cut down on commutes and save the planet.
I live in an area that has seen gas go from $1.50 up to $4.50 and then fall to $1.99. It should come as no shock, but during that time I used less gas, started carpooling (which we are still doing), convinced our office to start a telework program (which we have 1 day a week now) and traffic was much lighter (though it has since gone back to crappy as the price went to sub-$2)
It should come as no shock… but it was a shock.
I had always been vehemently against artificially raising the price of anything to effect behavior and when gas got to $3 I stuck by that. There had always been talk in congress about taxing the crap out of gas to get people to drive less and buy more fuel efficient cars. When gas hit $3 I remember thinking: “See! At $3 people drive just as much, traffic is just as bad and big engines are awesome! A dollar tax wouldn’t have done anything… stupid liberals!”
But then it hit $4…. Turns out $4 was the magic number and the price of gas wasn’t artificially inflated by taxes, but by oil speculators.
My wife and I found ourselves in traffic last week thinking: “You know, maybe $4 gas was a good thing.”
Which has me pondering, should we tax the crap out of gas to change driving habits?
We don't have traffic problems in Vegas, so NO I would absolutely NOT like more gas tax.
ReplyDeleteRalph Nader has talked about this for years. I absolutely agree. Transportation is a necessity, yes, but huge engines and low MPGs are not. The way we use gasoline is like a vice, and I am all for taxing vices to affect behavior (see also cigarettes and part of the argument for legalization of certain drugs).
ReplyDeleteDoes anyone think that expensive cigarettes really stopped people from smoking? I don't. Smoking cheaper cigarettes maybe, but not less.
ReplyDeleteStill my only concern would be what to do with the tax revenue. Usually this revenue gets diluted and polluted through the system, but I'd rather have a gas tax than an income tax (Note to Obama)
"Does anyone think that expensive cigarettes really stopped people from smoking? I don't. Smoking cheaper cigarettes maybe, but not less."
ReplyDeleteAbsolutely. In places like Boston, NYC, California (you know, fake America) where they've been taxed like crazy, there has been a noticeable decline in smoking. Sure, it can also be linked to more awareness of the health issues, but I don't think you can say the taxes aren't a contributing factor.
Just a quick Google search brings up this article, and many others: http://www.usatoday.com/news/health/2007-08-09-1Alede_N.htm
I'd like to see direct evidence of people saying they quick smoking because the cost of smoking went up. My personal experience and observations haven't noticed that, I have never heard anyone say "Holy shit! $5! I thought the only side effect of smoking was dying, but $5, fvck that, I'm quitting."
ReplyDeleteBut I'm sure more taxes on cigarettes is NOT encouraging people to smoke, so I'd assume the effect has to be reducing smoking in some regards.
I'm on the fence about taxing gas. I've read the theory before, and while I agree it would work, I'm not so sure it is a good idea to force behavioral changes in that way. There are other ways to do it, such as providing a good public transit infrastructure, which I'm not so sure ATL has, and I know Vegas doesn't have (that monorail sucks ass). Seattle quickly outgrew it's transit, and the people keep voting down new monorail projects. Portland is trying to not make the same mistakes as Seattle by constantly extending the light rail system. That alone is not enough, obviously, but combine it with some other incentives, and you can change people's behavior by encouraging the new behavior, not by punishing the old.
ReplyDeleteAs for cigarettes, states like NY found that raising taxes on cigs actually resulted in less tax revenue. Some attribute it to people quitting, but in truth, an assload of people start taking treks to reservations to buy them tax free. Now combine that tax with higher gas prices, and now it's not even fiscal to drive to the reservation. Just about every smoker wants to quit. So when you tax the hell out of it, money becomes one more reason, and it might be enough to tip the scales.
I believe that tax had very little to do with the decline in smoking in those areas.
ReplyDeleteMaking it ILLEGAL is what lead to the decline.
In NY, people got sick of not being able to smoke anywhere so a lot of people quit. Smoking a cigarette is less attractive when you have to go outside in the cold and freeze your ass off to do it.