Friday, December 9

Bad idea
There is a new proposal on the table in California to create a 2.5 cents/gallon "public goods charge" (We used to call this a tax) on gasoline for the purpose of reducing the consumption of petroleum products and to fund studies on how to cut greenhouse gases.

Reduction of gas consumption is a good idea. Reduction of greenhouse gases is a good idea. Taxing people as a means of doing so is a half-baked idea.

We've already seen that raising gas prices makes people grumpy but doesn't really reduce consumption. People drive as much when gas is over $3/gallon as they do when it is $2/gallon -- that is, everyone but the poor. These measures end up creating a hardship for people who are living on the edge and who have to watch pennies.

Frankly, I don't mind paying taxes. When you look at things from a global perspective we get a lot of bang for our buck. But taxation as a means of behavioral modification is going to end up hurting more than helping -- especially with this proposal. We need positive incentives for research and collaboration rather than another burden on those who are struggling to make ends meet.

Draft report from the California Environmental Protection Agency

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