Month: October 2020

The writer is correct that those with lower income feel more of the pain of the gas tax. This is more an issue of income inequality to be dealt with in that context via tax rebates for lower-income drivers, for example.The writer is also correct that in the short run, drivers often can’t change their driving habits in response to the tax. In the longer run, however, drivers buy more fuel-efficient cars, live closer to work and make fewer one-store trips.In short, no one likes to pay taxes, but sometimes they are necessary. The trick isn’t to get rid of the tax, but to make it work the way it’s supposed to.Lester HadsellTroyThe writer is a professor of economics at RPI.More from The Daily Gazette:EDITORIAL: Urgent: Today is the last day to complete the censusFoss: Should main downtown branch of the Schenectady County Public Library reopen?Gov. Andrew Cuomo’s press conference for Sunday, Oct. 18EDITORIAL: Find a way to get family members into nursing homesCuomo calls for clarity on administering vaccine Categories: Letters to the Editor, OpinionGasoline tax has its positive benefitsRe May 27 Viewpoint, “Slash state gas tax,” author Steve Keller argues that the tax on gasoline should be abolished. He contends that economists view higher gas taxes negatively and instead advocates to lower them. The consensus among economists is, in fact, that higher gasoline taxes are warranted — as much as three times the current level.The economic rationale for gasoline taxes is based on the concept of negative externalities: the harm to the environment and human health done by burning gasoline. A gasoline tax discourages use of gasoline, just as intended. The result of the tax is less consumption, less pollution, better health, less congestion and fewer accidents.The tax is more effective than alternatives; one study shows that gasoline taxes are multiple times less expensive than fuel economy standards at achieving increased environmental quality. read more