The hot topic these days is Global Warming. Everyone wants to lower carbon emissions without handicapping industry. Focusing on carbon emissions from cars, let me throw out an idea.

People are proposing minimum standards on miles per gallon (MPG)for cars, which I think is valuable. However, this enforces all the costs on the auto industry and not enough on the end user. When they purchase the car, people should be responsible not just for the cost of the car, but also for the cost that a car imposes on the environment. Influencing their behavior is ultimately the best way to increase average MPG in America.

I'm not proposing an across the board car purchase tax. What I am proposing is a sliding scale tax that increases based on how low the MPGs are and can even become a subsidy for high MPG cars. So lets simplify for a second and pretend there are only two equivalently priced cars in America--an SUV (10 mpg), and a hybrid car (85 mpg). The SUV could have a 5% tax and the hybrid would be subsidized 4.5% (with the spread going to cover the government's administration fees). This would shift the MPGs up because people will have more incentive to buy fuel efficient cars.

It is complex when brought to the real world. However, the net revenue the government would take from this tax should be zero if the average MPG is what the government wants. If the MPG is below government targets, it will take in revenue, which should then be earmarked for global warming causes (such as subsidies or research funding). IF the MPG is higher than expected, then we should be happy (and we raise the scale). I'm just tired of reading about fiscally irresponsible big government policy when there may be ways to solve problems without handouts.

What do you think of this idea or comment?
(You can change your vote at any time)

I agree

No opinion

I disagree