Thursday, April 27, 2006

A Good Plan to Reduce the Gas Burden?

I was thinking about High Gas Prices and I thought of something that may be worth looking into. This is just brainstorming. We could tax every sale of an SUVs or Full Sized Truck in the country. Put a Gas Consumption Tax on the vehicle of a certain percentage added on at the dealer. For instance if you buy a Ford F-350 you have to pay an extra $2,000 in taxes on top of the sale price.

Pros:
1. It would allow the government to get an extra cut of every large vehicle sale. There are several million trucks and SUVs sold each year and at $2k a pop that would be billions of extra dollars coming into the government.

2. It would reduce the amount of gas consumed because fewer big vehicles will be purchased in the US. Also since there will be less gas demand prices might go down.

3. Perhaps the tax can be waived if depending on the persons job. If a contractor needs a large sized truck to haul building materials or something then they will get a tax credit back later. That way people that like large trucks will be separated from people that actually need large trucks.

4. It would be a boon to the rental industry because you would need to rent a truck every time you want to haul lumber or dispose of clippings or something like that.

5. It would probably be better on the environment since sedans need less energy and emit less crapola then large trucks.

Cons:
1. It would probably put a death blow on the US car industry since much of their sales come from these big gas guzzlers. The government might have to subsidize the US car industry to keep them from going bankrupt until they can change their fleets to sell more smaller sedans and hybrids.

2. It would hurt the oil and gas industry since less oil will be needed to make into less gas. Hope they bank those record profits for the lean times ahead.

3. It might lead to a rise in power-hungry sedans. Perhaps car companies could go back to the land yacht and 400 HP 12 mile per gallon muscle car. I mean that is one segment that US car companies will probably excel over the Japanese.

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