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We've suggested several times now that increasing the national fuel tax would be a more efficient way for Uncle Sam to prod people into smaller, more fuel-efficient cars than the politically preferred method of using fuel economy standards to force automakers to build 'em with no incentive for us to buy 'em.


Based on present gasoline use, a $1 per gallon tax increase would raise $100 billion to $150 billion a year for the federal government and still keep U.S. gasoline prices lower than in most other developed nations.


The suggestion has raised objections from critics who say the middle of a deep recession is no time to be raising taxes.


We could kick ourselves for not thinking of this solution on our own, but why not delay imposition of the tax but announce it now?


The idea was raised a few days ago by Michael Levine, a researcher and senior lecturer at New York University School of Law, and Mark Roe, a Harvard Law School professor, in an article published in The Financial Times and reprinted in the Harvard Law School newsletter.




They suggest that if Congress and the administration were to show some political spine and enact a gas tax hike to be phased in over several years after a delayed start, the knowledge that it was coming would begin pushing consumers toward the kinds of green vehicles the government wants to promote while the delay would help get us through the present economic downturn.
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Tags: Opinion, Tax Incentives, Fuel Tax, Gasoline Tax

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Time For A Gas Tax Increase Is Now, But Delay Imposition 'Til Recession Eases was originally published by Green Car Advisor. Read the full story by clicking here.