Monday, September 19, 2016

Pollution gas tax

1. There should be a higher pollution tax on gasoline. An increase in pollution tax would make driving more expensive, and people would choose to drive less. One source believes that if leisure driving is more expensive, work effort will increase among people (Picker, nber.org, 2016). People will take less non-work trips and will therefore work more. A higher pollution tax would increase work effort.

2. There should not be a higher pollution tax on gasoline. People may buy less gas if there is a higher tax, and gas stations and oil companies could lose a large profit. Congress hasn't increased the gas tax in over 20 years, even when gas was only $1/gallon (Bledsoe, washingtonpost.com, 2014). An increase in the gas tax could lead to a decrease in consumers buying gas, which could have a huge effect on gas stations and oil companies.

3. I think an increase in pollution tax wouldn't be such a bad thing. Sure, we all would like even lower gas prices, but gas prices have gone down in the last couple years. Based on the ability to pay, consumers could afford a little higher gas tax because just a few years ago, the gas prices were in the $4/gallon range. People would be smarter about how often they drive, and it may even help the environment.

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