Daily Fuel Economy Tip

Climate Change Bill Proposes 50 Cent Fuel Tax

It looks like the days of “cheap” gasoline are finally over.

I’m sure you’re probably sitting there rolling your eyes and saying to yourself, “$2.80 gasoline isn’t cheap.”  Comparing today’s prices to historical U.S. prices, yes, you’re right.  However, when you compare the price we pay here in the U.S. against what people in other “developed” nations pay, we’re getting a pretty good deal.

One of the main reasons behind our relatively inexpensive gasoline is the fact that it isn’t very heavily taxed.  However, it appears that may be about to change.

Under a new bill that’s being kicked around in the House, a 50 cent per gallon tax could be phased in over the next five years in an attempt to get people to drive less and consume less fuel.

Interestingly enough, both regular diesel and biodiesel fuels would be exempt from the tax due to the fact they produce less harmful emissions than their gasoline counterpart.

It has long been theorized that the only way to really get Americans to drive less or purchase more fuel efficient vehicles would be to hit them in their wallets.  This bill would do exactly that.

For example, let’s say you fill up your 10 gallon tank once every week.  If this bill were passed, you would be paying an extra $260 a year to fill up, once the 50 cent tax was fully phased in.

I like the idea of increasing fuel taxes, but it seems to me that this would unfairly punish people who have low incomes.  I don’t think a 50 cent per gallon tax would cause someone making $100,000 per year to think twice about driving, but I think it would certainly cause someone who makes $25,000 per year to think twice about driving.

However, something tells me even if this bill were passed in both the House and the Senate that it probably wouldn’t make it out of the Oval Office.

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