>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.


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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s