Originally Posted by Roody
I think very high gas taxes (say an increase of more than $5/gal or $1.25/l) would reduce consumption and help pay for the externalities. The only problem is that a high gas tax would be murder on middle class drivers, while hardly fazing the wealthier drivers. A stiff point-of-purchase tax on the gas guzzlers themselves would leave some options for middle- and low-income people.
Very high gas taxes, imposed on large vanity vehicles, would force many people to abandon those vehicles in favor of a more reasonable ride. A downsizing of the national auto fleet would lower annual gas consumption.