Kash has a good Post on the new sentiment for higher gasoline taxes. I favor the passage of high Gas taxes myself, knowing a goodly share is forced back on the Producers, who must absorb the increased Cost to maintain the volume of Sales. Economists might cite this fact as a detrimental effect; but it fact, the backwards Tax pressure will not exceed the elimination of economic profits in excess of Normal Profitability. One, in the final analysis though, has to ask if installation of Marginal Tax rates can really do the Job: which is the reduction of Fuel consumption.

Marginal Tax rates impose alterations in Budgeting process to far greater degree, than it directly restricts Product utilization. This means whatever change in consumption behavior is splashed over the entirety of the Budgeting process, and any restriction of Goods or Services depends upon the Marginal Utility of all Goods and Services examined. Ordinary Consumers generally find much greater Marginal Utility in filling their SUV tank, than they find in buying that new Bathing suit. This is a Period where Consumption remains the intrinsic foundation for the sustained economic growth. One must question whether this is the time to pressure Consumers to cancel their least Marginal Utility purchasing.

The desired Goal is the reduced consumption of Carbon fuels. We may be focusing on the wrong medium. We want to make undesirable movement more disagreeable to Consumers. My Proposal is to place a Vehicle tax upon Interstate use. The Interstate system stands essential to the rapid transit necessary for individual use; don’t believe me, try crossing any major City in the Country using only City streets. Place the Tax on Vehicle Permits imposes a doubling of Taxation for each Vehicle equipped for Interstate use, and a high Permit price coupled with an extreme Violation Cost of a Ticket will limit Individual access to rapid transit.

What I would impose, if I could play God, consists of a law requiring Vehicle Permits on Vehicles using Interstate routes. These Permits would possess a Sticker Price of $70, and will expire monthly; Stickers placed in the rear window and Color-coded to indicate month. Ticket Violations would cost $500 each. States would get $20 of the Sticker price, and $300 of the Fines for State selling of Permits and Ticketing of Violators; the remainder of the Fee and Fines to revert to the U.S. Treasury. Limited Permit selling with the resultant long lines for Permits, and high Cost for Violations, will enhance the utility and value of Public transportation and Car-pooling. It will even result in cancellation of Pursuit searches for individual Products and Services for Consumption, bringing multi-purchase Buying trips on allocated days. I wonder whether the 18-24 yr. olds will be enthusiastic about this idea. lgl