>Krauthammer says it best

>Tax gasoline and refund the proceeds if you want to promote efficiency and reduce driving.

I really don’t have much to add on this one other than it makes perfect sense economically if you consider that both supply and demand are relatively inelastic, therefore increasing prices doesn’t cause huge deadweight losses, and therefore by reducing other taxes, you reduce the much larger deadweight losses of those other taxes.

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About perkinsms

I'm an engineer and father interested in transit, parking and economics.
This entry was posted in budget, economics, fiscal, gas, tax. Bookmark the permalink.

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