Here we go again. Sound the sirens and whip everyone into a frenzy. Then hope to get $.05 and the populace will think they saved $.45.
In car sales they will come out and tell you that your $15,000 car is worth $2,000. They actually want you to get mad. They say, “Send them to the ceiling and then scrape them off.” If you get $5,000, you are happy.
This is my favorite part, “Rep. John Dingell, who is marking his 52nd year in Congress…” Never heard of him. 52 years and have never heard of him but this is his chance to make a mark.
- 50 cents a gallon tax on gas and jet fuel
- Phase out the interest tax deduction on home mortgages over 3000 sf (Rich Tax)
This is surprising coming from a Michigan guy who supported the auto industry for a while. So either he has been covering for them for decades to get contributions and now realizes that he can be “honest” in his old age or Alzheimer’s has set in.
He says that the home deduction should be on large subruban houses because they create urban sprawl. Land use rules create it plus a growing population. Las Vegas has it’s sprawl due to a lack of land use rules which Porltand does have. They have planned to take on Portland’s idea of a Urgan Growth Boundary.
I heard a year ago on the radio that 75% of wealth between 2000-2005 was created by housing. If you drop the deductions you hurt a piece of the economy. There is already a limit on income levels to interest deductions to be applied.
What happened after the Toyota Prius became popular? Some areas talked of changing the taxing standard because they weren’t getting the gas taxes. On one side they gave tax deductions to those who bought but then realized they were missing it on the other side.
Oregon has talked about adding GPS into cars and taxing on mileage not gas.

What would happen if all of our advertisements and programs actually stopped smoking completely? Around $13 Billion in tax revenues would be gone for all states combined and $8 Billion federally.
;)

Raising the taxes after a threshold is reached will cause a reduction in taxes. The gas tax would cause people to get more efficient cars just as it slowed smoking. But eventually there would be a reduction after we got dependent on it. Plus the taxes will take money out of the economy and hurt the lowest earners the most as gas would be a larger percentage of their income.
See the above chart and go to this website to see how raising taxes counterintuitively lowers tax revenues once you reach a threshold.
This is a bad idea. And I want someone to explain to me how we warmed up from the last couple of ice ages without SUV’s running around. Maybe dinosaurs had more flatulence. Yeah that explains that.