Taxes

Charles Krauthammer proposed a Federal tax, a Net Zero Gas Tax. Tax on gasoline would be greatly increased. Maybe even becomng as high as $1 per gallon, but the gas payer’s payroll social security tax would be lowered the same amount, so that things even out. The result is that the government does not increase its funds and the working consumer pays the same. Goal is to encourage less use of gasoline, hopefully changing consumer habits. A side benefit from this taxation is, fewer revenues go to countries such as Russia, Venezuela and Iran.

So far, it sounds like a possible answer. But, there is a problem. Retired or unemployed consumers will be unfairly hit with such a heavy gas tax. Because they are not working, they won’t get the refund of lowering a payroll social security tax. Most retirees, disabled persons and unemployed are on a fixed income, so adding a heavy gas tax would hinder their ability to be independent. The resulting costs of driving a vehicle could mean that they must depend on working relatives to transport them or cause them to fall back to taking the bus.

In some places, taking the bus could be risky or impossible for the elderly or disabled persons to manage. Unfortunately, many bus stops are not the safe for them. In rural settings, bus stops are far between, perhaps even too far to walk to or from.

Our largest population consists of ‘Baby Boomers’ who are becoming elderly and/or retiring. So, I’m afraid another solution for taxation needs to be found.

Source: Fox News, Weekly Standard, Special Report with Bret Hume