How much of our military operations would no longer be necessary if national defense didn't include stabilizing the middle east and its oil supply? How much money are we spending every year to try and undo some of the damage of greenhouse emissions?

A Progressive Gas Tax

The truth is, as taxpayers, we're subsidizing the consumption of gasoline. Even at its highest, the price of a gallon of gas never fully reflected the cost to our country, nor to the environment. The tax on gasoline is hardly a tax --- it really is more a reduction of a subsidy.

On the other hand, gasoline is an obvious necessity. It allows the essential infrastructure of our society to function. Low as they are, gas taxes are highly regressive towards those making minimum wage.

The question then becomes, how do we tax it adequetley in order to eliminate the subsidy, but avoid making an already onerous tax on the poor worse. If a person is going to buy a much bigger car than they really need, they should have to take the real cost to the country and the planet into consideration --- that is, they should pay for it. We shouldn't be subsidizing them after the fact. But factory and farm workers making minimum wage still have to get to work to continue working to produce the necessities of life.

We propose a progressive gas tax as a solution. Unlike the income tax, which is progressive with income, the percentage sales tax on gasoline would increase with monthly usage.

More specifically, every person would receive a certain number of "tax-free" gallons per month for themselves and each of their dependents. They would be able to purchase gasoline up to that monthly limit, and pay no state tax at all. After that, they would receive a certain number of gallons at roughly the current tax rate on a percentage basis. Beyond that, the rate would increase dramatically.

Businesses, such as farms, that use fuel in serving a public good would be exempted. The move would be directed at consumers driving unnecessarily large vehicles, making unnecessary trips and those using fuel for recreational purposes. The idea isn't to tell people what to do, but to stop giving them money to do it.

Such a system could easily be implemented via the internet. The highest tax rate would always be charged when making a purchase, but a person would receive a refund at the end of the month to adjust. A person would be able to register their credit cards to make the whole process automatic. In this case, the tax rebate could even be credited to their account immediately. Unlike with toll booths, the cost of administering such a system would be negligible.

Almost everyone using gasoline only to get to work and run minor errands would see a decrease in their gasoline tax.