05-06-2011, 03:33 PM
I agree it's a good idea to look at Europe, but there are some important differences to consider:
1. European consumers spend less on gasoline than Americans. Yes it costs a lot more per unit, but they drive cars that are much more fuel efficient (40 mpg there v. 22 here on average) and they drive a lot less. Part of this is layout of cities and urban density, which we can't do much about present tense but could change in the future, and the other part is public transportation. I'm going to visit my mom this weekend and if I could hop on a train instead of driving 5 hours each way in what will probably be terrible traffic, believe me I would.
2. What Europeans do with gasoline tax revenues, which are 60-70% of the price of gasoline and have been in place since the 1920's , when cars were luxury items. Yes it mostly goes to general budgets, as the law allows. What gov't does with revenue can be and is regulated.
3. The tobacco settlement - not really related. That is not a tax. Neither the tobacco companies nor the gov't can tell the states what to do with the money they got. In '04 my state used 75% to fund children's healthcare initiatives, Medicare, and anti-smoking programs. But it's the state's money to use as it wishes.
1. European consumers spend less on gasoline than Americans. Yes it costs a lot more per unit, but they drive cars that are much more fuel efficient (40 mpg there v. 22 here on average) and they drive a lot less. Part of this is layout of cities and urban density, which we can't do much about present tense but could change in the future, and the other part is public transportation. I'm going to visit my mom this weekend and if I could hop on a train instead of driving 5 hours each way in what will probably be terrible traffic, believe me I would.
2. What Europeans do with gasoline tax revenues, which are 60-70% of the price of gasoline and have been in place since the 1920's , when cars were luxury items. Yes it mostly goes to general budgets, as the law allows. What gov't does with revenue can be and is regulated.
3. The tobacco settlement - not really related. That is not a tax. Neither the tobacco companies nor the gov't can tell the states what to do with the money they got. In '04 my state used 75% to fund children's healthcare initiatives, Medicare, and anti-smoking programs. But it's the state's money to use as it wishes.