Friday, May 25, 2007

Americans already used to $3.00 gas - proof a gas tax could work?

Will $4.00 make any difference?

A new poll suggests that while $3.00 plus gas hurts, most Americans are getting used to it. And, while $3.00 gas is pushing more to consider more fuel efficient vehicles, it's mostly just causing consideration, not action. Will $4.00 be the magic number to force real change? Will we hit $4.00 this summer?

One thing is for certain. At $4.00 per gallon, there is no question about the cost effectiveness of hybrid cars, which makes me wonder, does this prove a gas tax could revolutionize America?

Say gas stays at $3.50 per gallon. Add an extra $.50 tax to fund clean vehicle tax credits for the consumers of hybrids, etc. America could easily generate billions to subsidize the extra costs of hybrid technology, and the fuel savings would essentially negate the tax for wise consumers.

Oh yeah, and the gas tax would increase the cost-effectiveness of bio-fuels - maybe we could move the massive ethanol subsidies to consumers, rather than profit-driven corporations?

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