Tax Hybrids?

That is just about the dumbest thing I have heard in a while. A CBS affiliate in Texas KWTX reports:

The U.S. Chamber of Commerce is suggesting the federal government tax hybrids and other fuel-efficient cars.

Can’t they come up with a better idea than that? There was at least a passing mention of taxation based on the amount of fuel you burn. Let’s consider another option. How about a tax based on a calculation of weight and use? The heavier the vehicles tend to use more fuel and the larger vehicles create larger potholes. Why not hit hard with taxes those who hit the road harder since the justification for raising tax is to fix roads?

Also see my previous postings on the economics of owning a hybrid in June and September.

Update: Green Car Congress gives a better explaination as to what the U.S. Chamber of Commerce is trying to accomplish. Let me see if I can simplify this problem that they think will take 10 to 15 years to solve.

State vehicle tax when tags are issued

W * Y = ST

W = weight of vehicle
Y = state tax coefficient
ST = total vehicle tax

Federal tax per gallon

G * X = FT

G = gallons purchased (miles driven / time engine runs on hydrocarbons)
X = federal tax coefficient
FT = total use tax

Simply raise the coefficients X and Y as the need becomes greater for more funds to repair roads. Those who move to lighter more fuel efficient cars will benefit from this simple method of taxation and will force those who stay with larger gas hogs to carry more of the burden of repairing the roads.

Also linking to OTA members: The Crazy Rants of Samantha Burns and Stop the ACLU and Point Five and Right Wing Nation and Don Surber After Hours and Conservative Cat and NIF and The Uncooperative Blogger and Pajamas Media / Stuck on Stupid and Robinik.net

Check out my Grill'n Time blog. By subscribing to the Grill'n Time RSS feed you will can help me win a competition worth more than $4500 in cash and prizes.

Leave a Reply


Subscribe without commenting