Monday, September 12, 2005

Using Taxes to Keep Gasoline Prices High Makes Sense to Some

Bab Davis in WSJ:
Walter McManus, a University of Michigan automotive economist, estimates that if prices jumped to $2.86 a gallon and stayed at that level, sport-utility vehicle sales would fall 18% in five years. If gasoline rose to $3.37 a gallon, SUV sales would fall 28%. Sales of pickups and vans would plunge.
...Congressional Budget Office Director Douglas Holtz-Eakin calculates that a $1 increase in gasoline taxes would cut consumption 20% within 14 years.
...(Economy.com economist Mark) Zandi urges a flexible tax, aimed at keeping gasoline prices at roughly $3 a gallon; the tax would fluctuate with gasoline prices. A simpler way is to increase gasoline taxes by $1 a gallon. The idea is the same: make gasoline prices high and predictable.
More power to them.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home

Disclaimer: All opinions are personal and in no way affiliated to any other person, group or an institution.

This page is powered by Blogger. Isn't yours?

Creative Commons License
This work is licensed under a Creative Commons License.