Is it Time to Increase the Tax on Gasoline?

Is it time to increase the tax on gasoline?
Is it time to increase the tax on gasoline?

As the U.S. government comes to terms with yet another company experiencing financial problems within the electric car industry, there is growing concern that the sector is running out of steam. Indeed, despite the millions of dollars of taxpayer’s money invested directly and indirectly into the industry, sales are currently well below forecast and a number of government targets for the years ahead seem to be out of reach. There is a growing debate in the U.S., and indeed around the world, as to whether the U.S. government should increase the tax on gasoline, which would encourage more and more people to look at alternative modes of transport, such as electric vehicles.

Would it be fair to increase tax on gasoline?

The tax on gasoline in the U.S. is significantly less than that in many countries, such as the UK, where the price of a gallon of gasoline is predominately made up of an array of different taxes. The price of gasoline in the U.S. compares favourably to the vast majority of countries around the world and perhaps a slight increase in gasoline tax would encourage more people to consider electric vehicles?

The fact is that oil is a diminishing natural resource and at this moment in time the U.S. depends significantly upon oil imports. This has in many ways put the U.S. government at the beck and call of overseas partners, which many would argue has dragged the country into various conflicts overseas.

Quote from ElectricForum.com : "The US government has not increased the federal gasoline tax since 1993 which will surprise many people. The 18.4c rate per gallon rate today would be 28.97c per gallon (+57%) at the end of 2012 if it had been increased in line with inflation since 1993."

Encouraging motorists to look at electric vehicles

Despite the fact that the U.S. government has invested millions of dollars of taxpayer’s money into the industry, many people are not fully aware of the facts relating to electric transport. The vast majority of people will not be aware that many school buses are already electric powered, electric transport has been around in some form or another for in excess of 100 years, and the technology is certainly improving. Indeed, gasoline engines are but a fraction of the efficiency of electric engines which is yet another factor that has not been made public.

Perhaps the only time that motorists around the world will look at the electric car industry, en masse, is when it actually costs them in their pocket to run their gasoline powered vehicles. Whether it is fair to increase the tax on oil and gasoline is open to debate but the fact is that the U.S. government, and indeed other governments around the world, need to take a more radical approach to electric cars.

Do electric vehicles actually work?

The old stigma attached to electric vehicles has been very difficult to shake off and indeed many motorists are still unsure as to whether electric vehicles actually work. When you bear in mind the amount of money invested by private companies and governments this is an astonishing question but one that does perfectly illustrates the lack of communication from the industry to the mass motorist.

There also needs to be a far greater emphasis on recharging stations, extending journey capacity and whether or not hybrid vehicles are the stepping stone towards fully electric cars is also another matter for debate. The truth is that the electric car industry today is more finely tuned and more technologically advanced than at any stage in the history of electric travel. This is certainly not being portrayed to the wider public, which is scandalous when you bear in mind the amount of taxpayer’s money which has already been invested into the industry.