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High oil prices? Tax cars & jet fuel! | 67 comments (67 topical, 0 editorial, 0 hidden)
Re: High oil prices? (none / 0)
Car purchases, especially a new car, are rather big investments. I think people do really think about the future costs. One can enforce, that every seller of a car has to declare the amount of gas a car needs per 100km or something like that, so that people really know what they are buying, but I think this anyhow already now the case, too.
Then what is a rational decision? Is it a rational decision to go to the cinema on saturday evening? Sure. And in the same way it is a rational decision to buy a car, which has more power than neccessary. When the society decides we can emit the amount X of CO2 next year, then it is the usual way to let people buy shares of this emission rights from the state (that is equicalent to fuel tax, which is readjusted somehow to match the overall target). It is market economy to assume that those who are willing to pay the highest price, are those who will have the most usage.
 

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Thu May 29th, 2008 at 05:57:38 PM EST
[ Parent ]
Re: High oil prices? (none / 0)
No, the market economy assumes that those willing to pay the most are those who have the most money.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Carrie (migeru at eurotrib dot com) on Thu May 29th, 2008 at 06:01:12 PM EST
[ Parent ]
Re: High oil prices? (none / 0)
That of course plays a role, too. But the idea, that automatically richer people drive bigger cars is not true. There is certainly a correlation, especially in the lower incomes, but this is only on a statistical basis, not on an individual basis. There are people for which a car has a high status symbol charakter, and those for which this is not the case. So some people buy big cars on credit and some richer buy smaller cars of their pocket.
So for making taxes according to what people can afford there are other places, like income tax or direct payments (or wealth tax or whatever you imagine), but taxation around driving should focus on the environmental impact only.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Thu May 29th, 2008 at 06:14:18 PM EST
[ Parent ]
Re: High oil prices? (none / 1)
How do you factor in the large marketplace for second-hand cars? And how about the many "classic" cars I see in my town, which would be considered junk by most economists but are desired by those with a Porsche, or Jeep, or VW, or Cadillac fetish?

I would prefer to more tightly couple the problem and the cost of the problem. If the problem is the burning of oil, then the tax should be applied to that part of the process, not the device that actually does the burning...

by asdf on Thu May 29th, 2008 at 06:10:37 PM EST
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Re: High oil prices? (4.00 / 2)
Was this implied as answer to my comment? Because you seem to want the same as I do.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Thu May 29th, 2008 at 06:18:04 PM EST
[ Parent ]

High oil prices? Tax cars & jet fuel! | 67 comments (67 topical, 0 editorial, 0 hidden)
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