A Gas Tax Makes the Most Sense for California

Details

Author(s):
  • Joseph Bankman
Publish Date:
August 11, 2009
Publication Title:
San Jose Mercury News, August 11, 2009, pg. A9
Format:
Op-Ed or News Article
Citation(s):
  • Joseph Bankman, A Gas Tax Makes the Most Sense for California, San Jose Mercury News, August 11, 2009, pg. A9.
Related Organization(s):

Abstract

The bipartisan commission set up to reform California’s tax system is considering reducing income tax rates and increasing the gas tax. That’s a great idea.

The income tax raises revenue but affects behavior in unfavorable ways. A tax on business discourages investment, and a tax on personal income discourages savings or labor. Increasing the tax on gas will also affect behavior, but in a favorable direction. Californians will drive less, and that will reduce pollution, urban sprawl and greenhouse gas emissions.