Gas Tax REFUND Proposal - Encouraging Efficiency

[GeekMonkey]

(edited title for clarity)

Here is my proposal for how we could encourage the use of fuel-efficient vehicles.

Premise: Inefficient vehicles use more gas, therefore, they drive up the price of gas for everyone because of increased demand. People who drive more responsible, efficient vehicles are affected by the increased demand that drives up the price from inefficient vehicle drivers.

Solution: Income tax rebate on total gas tax paid, pro-rated on the efficiency of your vehicle.

Example: If your car gets 30mpg or better, you would get a 5% refund on the gas tax that you paid (save your reciepts). If your car gets 35+ mpg, a 7% refund, 40+ = 10%, etc.

(These numbers are for example only, and would need to be adjusted once real research was performed on the impact, etc)

What do ya think?

[trotsky]

1. Good in theory, lousy in practice.

How are you going to verify a person is getting the mileage they claim? What if they drive multiple vehicles? What about the poor who can't afford a late-model high-efficiency car?

[GeekMonkey]

2. It's based on the reciepts for gas you buy

and based on the rated mpg of the model you drive

the poor wouldnt get much back anyway because they are already below the income tax level (they get most back as refund already)

there are lots of logistics to work out to make it fair, but i think that can be done

[Scottie72]

3. Only if older cars are gradfathered in

There are some people out there who cannot afford to purchase the most new technolgical car out there. Prius cost over 20,000 that is very expensive to a lot of people. I do not think it is a fair tax. It would be a tax cut for the rich.

[GeekMonkey]

5. I'm not adverse to a tax cut for the rich if it encourages

responsible energy use

We aren't talking about adding any new taxes, just a refund on taxes already paid

[ThomWV]

4. Tax Policy Needs Simplification, Not An Additional and Cumbersom Tax

This nation needs a simple and fair tax policy, not taxation of the sin of the moment.

[GeekMonkey]

6. once again, this is no new tax, just a simple refund based on

your vehicle's efficiency rating

[Spinzonner]

7. Too complicated and cumbersome

however noble it seems.

If it were to be practical at all, it would need to be done at the source - at the time of purchase.

Besides, if you get a fuel efficient car you're already getting benefit of lower taxes because you're buying less gasoline per mile traveled. I don't see the point.

And there needs to be some indication of what the financial and environmental impact would be. If they're not significant then it seems like more a moral thing than a practical one.

And I tend to agree with other's on it having a second-order regressiveness to it.

[GeekMonkey]

8. the point is: ineffiecient vehicles drive the price up for all of us

they raise the price that we ALL pay


this is the easiest way to encourage more responsible vehicles without adding a new tax


I'm ok with saving a few rich ppl some money if it means better air, cheaper fuel, and less dependance on foreign oil

[trotsky]

9. Best point.

If this is not accomplished at the time of purchase, you're forcing lower-paid workers to essentially float the government an interest-free loan for a year or longer. Since the poorer you are, the more likely you are to spend every dollar you make, this will end up hurting a lot of people.

[GeekMonkey]

10. you're missing the fact that this is NOT A NEW TAX

it won't affect people at the lower end at all, other than getting to pay less for gas as demand is reduced

it will only encourage those that CAN afford to drive an inefficient vehicle to drive a more responsible one, which helps everyone

[trotsky]

11. Still a pain in the ass for those in the lower income brackets.

Keep all your gas receipts for a year?

And if it's a refund on income tax, what if you make so little that you aren't paying income tax, only payroll taxes?

[GeekMonkey]

12. well, then you arent affected except for lower gas prices

this is simply a refund on the gas tax that EVERYONE already pays

it will encourage more fuel efficient vehicle use and that will drive the price down for the people at the bottom

its a WIN WIN

[trotsky]

13. As overall consumption goes down,

why won't the oil companies just jack up the price of gas? They clearly already have a cartel going.

[GeekMonkey]

16. Because some gas companies will undercut the competition

especially independant ones such as Citgo

[Selatius]

14. The income tax is far too complicated as it is

You are better off mandating higher fuel efficiency standards across the board as opposed to inserting a few more pages into the monolithic tax code already rife with credits, exemptions, loopholes, shelters, etc.

[GeekMonkey]

15. my solution is more politically feasible, as it is uncomplicated

and doesn't add a tax, just a refund from already paid taxes

[trotsky]

17. Well, no matter how simple you think it is...

the net result will be to take money out of the treasury. How do you plan on making up for that?