tag:blogger.com,1999:blog-2232587951592761390.post6784008281176716084..comments2008-05-07T15:29:56.985-05:00Francisconoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2232587951592761390.post-40246990182705167552008-05-07T15:29:00.000-05:002008-05-07T15:29:00.000-05:00It is true that some users of gasoline have different elasticity than others, but is this a good reason not to implement a gasoline tax?<BR/><BR/>If the price of gasoline (excluding taxes) is controlled by supply and demand, then wouldn't the reduction of gas use by some people (commuters, city-dwellers) drive down prices for everyone (including UPS).<BR/><BR/>That is (and these numbers are purely examples; I made them up), Suppose gas is $3.60 a gallon, and a new tax of $1.00 drives up the price to $4.60 a gallon.<BR/><BR/>Many people who can afford to do so will drive smaller cars, trade-in the SUV, consolidate trips, use bus & rail service, carpool, etc. Suppose this decrease in demand for gasoline drives the natural price down to $3.60 a gallon, including the gas tax. UPS isn't paying more for gas.<BR/><BR/>Also, even if the price would be driven up, with the problem of co2 emissions facing us, wouldn't it be fair to require those who use gasoline to pay for the environmental damage?<BR/><BR/>If there's an environmental cost to pay for UPS delivering a package, then why not raise a tax to pay it? UPS can pass the cost onto customers whose demand for shipping is causing the fossil fuels to be burned.<BR/><BR/>The effects of climage change are far more worrisome than a disruption/decrease in operations at UPS or another organization, I believe.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2232587951592761390.post-26390864261648509182007-08-27T00:10:00.000-05:002007-08-27T00:10:00.000-05:00Excellent article, I think the tax you propose would have the added benefit of avoiding most of the potential for economic disruption posed by a broad increase in the the gas tax.Anonymousnoreply@blogger.com