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Originally Posted by loquitur
I agree that the infrastructure has public benefit. I didn't say it doesn't. But you have to recognize that it is also a huge subsidy for private cars, and that carries with it enormous costs.
And here is the main source for my support of raising the gas tax. Greg Mankiw, Prof of economics at Harvard, former economics adviser to Pres Bush and founder of the "Pigou Club." |
Well I read that and I can't say I'm convinced.
First .10 a year is not going to change behavior on any but the poorest in my opinion, its just going to raise taxes. For this idea to work it would require a massive taxation on fuel, something I'm fundamentally opposed to, and I'm not sure of it doing anything besides stunting economic growth. Yes there would be changes in behavior but I don't see this as a major boon to nations already doing this massive taxation.
Really the only possible benefit, which we already talked about, I see happening is it would make early alternatives more economically viable since the government would be pricing the competition out of competitiveness. I just don't think we can count on a major innovation just because there is a need for one.