Search This Blog

Friday, February 20, 2009

In support of eliminating gas tax in favor of national VMT

I support eliminating retail gasoline taxes and implementing a nationwide VMT tax.

VMT has not been implemented in many places (other than major Urban areas) mostly because the technology to implement either didn't exist or was deemed too expensive.
But, as our technological proficiency grows (esp. in the realm of GPS and computers in general etc.), this becomes less of an issue.

A VMT tax has many advantages over all other forms of externality-adjustments: increased regulation, increased gas tax, Carbon trading.

I've discussed why I oppose increased gas taxes nationally before, but another reason to oppose them relative to a VMT tax is the VMT tax tackles the externality directly: it is a direct tax on driving (the direct cause of congestion and pollution etc.). A gas tax is a tax on those things indirectly but such an effect is muted as part of this is offset by increased driving after consumers start substituting toward higher-MPG vehicles. Gas taxes (like regulations and carbon trading) incentivize better-gas-mileage production and consumption, but a VMT tax would be the same regardless of what kind of car is causing the externality.

This seeming strength of the VMT tax is also it's biggest weakness. We WANT to incentivize higher MPG cars and trucks and the technology behind it. We WANT to incentivize alternative energy other than gas. Gas taxes, regulation, and carbon trading can do this, but a VMT tax alone can not.

This potential downside can be offset if at least part of the VMT tax goes directly to support government spending on green infrastructures, alternative energies, and the like. Of course another way around this is to implement a "carbon"-adjusted VMT tax, taking into account vehicle type and charging a higher tax rate on larger vehicles or on "luxury" gas guzzlers per mile traveled. This could get a bit muddy and confusing to the consumer though, and could incentivize less safe vehicle production at the private level, so I prefer the former option which would allow the government to decide this directly.

The VMT would reduce 'frivolous' driving, increase bike trail use etc, increase demand for local produce consumption etc., reduce pollution.... Down the road, these devices could be installed in all new vehicles at minimal cost of marginal production (I mean they can put GPS in a little phone now).

Note that I'm NOT supportive of a VMT tax that would actually be a net increase taxes on consumers (for the same reasons I'm against a gas tax in general. I'm saying we should replace our existing gas tax with a VMT tax over the long-run - and that this in and of itself could create social efficiency gains over a gas tax.

6 comments:

longge said...

Among the different competitors in the category of sports footwear, ugg infant's erin boots has been able to retain ugg infant's erin number one position offering to the sports person the ugg with a comfort and quality. The cushioning affect on your feet was given topmost priority. Just think how you will feel running with an uncomfortable pair of ugg boots . Shoe market has seen the ups and downs and uggs is one of the players.

oakleyses said...

tiffany and co, christian louboutin shoes, polo ralph lauren outlet, coach purses, nike free, longchamp handbags, coach factory outlet, louis vuitton outlet, tiffany and co, louis vuitton, gucci outlet, kate spade handbags, louis vuitton outlet, true religion jeans, tory burch outlet, kate spade outlet, prada handbags, air max, michael kors outlet, chanel handbags, burberry outlet, ray ban sunglasses, oakley sunglasses, burberry outlet, prada outlet, nike shoes, michael kors outlet, longchamp outlet, louis vuitton handbags, ray ban sunglasses, coach outlet, jordan shoes, michael kors outlet, louboutin outlet, michael kors outlet, polo ralph lauren outlet, air max, michael kors outlet, michael kors outlet, coach outlet store online, louis vuitton outlet stores, oakley sunglasses cheap, oakley sunglasses, true religion jeans, louboutin, longchamp handbags, louboutin

oakleyses said...

hollister, louis vuitton uk, michael kors, sac burberry, true religion outlet, nike tn, vans pas cher, abercrombie and fitch, nike roshe run, nike air max, michael kors, louboutin, oakley pas cher, timberland, nike free pas cher, north face, nike trainers, polo ralph lauren, mulberry, ray ban pas cher, michael kors pas cher, new balance pas cher, ray ban sunglasses, air max, air force, barbour, sac longchamp, sac louis vuitton, vanessa bruno, lululemon, sac guess, sac louis vuitton, air jordan, sac hermes, louis vuitton, true religion outlet, nike free, air max, longchamp, hogan outlet, nike roshe, hollister, ralph lauren, north face, polo lacoste, air max pas cher, converse pas cher, nike blazer

oakleyses said...

hollister, louis vuitton uk, michael kors, sac burberry, true religion outlet, nike tn, vans pas cher, abercrombie and fitch, nike roshe run, nike air max, michael kors, louboutin, oakley pas cher, timberland, nike free pas cher, north face, nike trainers, polo ralph lauren, mulberry, ray ban pas cher, michael kors pas cher, new balance pas cher, ray ban sunglasses, air max, air force, barbour, sac longchamp, sac louis vuitton, vanessa bruno, lululemon, sac guess, sac louis vuitton, air jordan, sac hermes, louis vuitton, true religion outlet, nike free, air max, longchamp, hogan outlet, nike roshe, hollister, ralph lauren, north face, polo lacoste, air max pas cher, converse pas cher, nike blazer

oakleyses said...

hollister, herve leger, canada goose, insanity workout, nfl jerseys, canada goose, soccer jerseys, north face outlet, p90x, ugg, uggs outlet, canada goose, marc jacobs, new balance shoes, ugg pas cher, canada goose outlet, ferragamo shoes, canada goose uk, celine handbags, jimmy choo outlet, abercrombie and fitch, reebok outlet, mac cosmetics, longchamp, wedding dresses, ugg boots, beats by dre, mcm handbags, asics running shoes, ghd, giuseppe zanotti, babyliss pro, soccer shoes, canada goose jackets, ugg boots, ugg australia, lululemon outlet, birkin bag, mont blanc, north face jackets, nike huarache, nike roshe run, bottega veneta, chi flat iron, rolex watches, instyler, vans shoes, valentino shoes

oakleyses said...

montre homme, iphone 6 cases, thomas sabo, swarovski crystal, hollister clothing store, swarovski, lancel, rolex watches, moncler, ray ban, wedding dresses, air max, hollister, ugg, ralph lauren, coach outlet store online, pandora jewelry, converse, baseball bats, oakley, louboutin, juicy couture outlet, moncler, gucci, air max, pandora charms, hollister, moncler outlet, timberland boots, louis vuitton, toms shoes, juicy couture outlet, canada goose, vans, parajumpers, moncler, ugg, pandora charms, canada goose, moncler, moncler, links of london, converse shoes, moncler, supra shoes, karen millen