Although I hate taxes, I think the government will give subsidies to lower the cost of electric cars in the form of tax credits or rebates. Like it or not, taxes are used for social engineering. If you want to discourage buying gas, tax it and use that money to provide funding for the electric car rebates. Do we want energy independence or not?
During the oil crisis and embargo in the 70’s gas was rationed by odd and even days, everyone was aware of our dependence of foreign oil. There was a scramble of to find new oil fields, and big money was spent on starting oil shale projects. OPEC was concerned about loosing control of the oil market and increased production. Within a year or two, things were back to normal and most of the projects that were in development were canceled. We went back to our gas guzzling ways.
If OPEC opens up production and drives the cost of gas down below $2.00, nobody will want an electric car and we will repeat the same mistake we made 35 years ago, by doing nothing. Since $4 appears to be the price that got everybody’s attention, I would say have a variable tax on gas, so the price at the pump is not less that $4 and use the tax money collected to lower the cost of the electric cars. Although this favors the new car buyer, the used car buyer will benefit, when many new electric cars are sold. The successful launch of the electric car will create a good used market of electric vehicles in 5 years.
This type tax is much easier to administer and should get positive results. I think the electric hybrid will revolutionize the way we live and will create a much cleaner planet.
The bureaucracy that will be created with a cap and trade carbon tax will have little or no benefits.
2005 Chrysler Crossfire Ltd Roadster
2002 Mustang GT
1997 Jaguar XK8 Coupe