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Why Friedman’s Gas Tax Idea Stinks
Tom
This is Bob Bluecollar. Bob is a regular, hard-working American with a wife, three kids, and a mortgage.
Bob
This is Will Whitecollar. Will makes six figures, eats at fancy restaurants, and cheats on his wife with his 23-year old
secretary.
Will
Bob and will are happy!(see the smiles?)
Bob Will
Bob and Will both drive about 18,000 miles per year.
Bob Will
18,000 18,000
Bob drives a 2001 Chevy S10 that gets 19 mpg. Bob would like to buy a new
car that gets better mileage, but Bob has kids to feed and bills to pay.
Will
18,00019mpg
18,000
Bob
Will drives a 2011 Cadillac Escalade that gets 13 mpg. Will doesn’t need a huge SUV, but
Will is douchebag who is obsessed with impressing his white collar buddies, and
besides, he has lots of money.
Bob Will
18,00019mpg
18,00013mpg
Both Bob and Will pay the same for gas - $3.50 per gallon.
Bob Will
18,000 18,00019mpg 13mpg$3.50 $3.50
Bob pays $3315 per year for gas.Will pays $4846 for gas.
Bob Will
18,000 18,00019mpg 13mpg$3.50 $3.50
=$3315 =$4846
Bob pays about $276 per month for gas, while Will pays $403.
Bob Will
18,00013mpg$3.50$4846
18,00019mpg$3.50$3315
12 mo$403
12 mo$276
This is Tom. Tom wrote a couple of books. Tom thinks the government should increase taxes on gasoline by
$1 per gallon.
Tom
Bob is very concerned about Tom’s idea because Bob’s paycheck is stretched as it
is. Will, on the other hand, could care less. He has money.
TomBob Will
Is Tom’s $1 per gallon tax a good idea? Let’s find out....
TomBob Will
? ?
Both Bob and Will would have to pay $4.50 per gallon if Tom has his way.
Bob Will
18,000 18,00019mpg 13mpg$3.50 $3.50$4.50
$4.50
Under Tom’s plan, Bob would have to pay almost $1000 more per year in gas.
Will would have to pay almost $1400 more.
Bob Will
18,00013mpg$3.50$4846
18,00019mpg$3.50$3315
$4.50$4.50
$4263$6230
Will is still happy. Will doesn’t really care about paying more for gas. He’ll pay
whatever it takes to keep impressing his douchebag friends with his living-room-on-
wheels SUV.
Bob Will
18,00013mpg$3.50$4846
18,00019mpg$3.50$3315
$4.50$4.50
$4263$6230
Bob is sad. Unlike Will, Bob does care about how much he pays for gas. Because he now pays more, he can’t afford the newer, more
fuel efficient car he has been dreaming about buying.
Bob Will
18,00013mpg$3.50$4846
18,00019mpg$3.50$3315
$4.50$4.50
$4263$6230
Now, Tom might say, “But, if gas prices are higher, people will drive
less!”
TomBut, if gas prices are
higher, people will drive less!!
That is true. Bob still has to drive to work, though. So to drive fewer miles, he is going
to have to skip that family road trip to Disney World he was planning. Now Bob’s family is
sad. Thanks a lot, Tom.
Bob
However, Will won’t drive less. He has money to burn. He is going to keep his Cadillac SUV, keep eating at nice restaurants, and keep banging his
secretary. The only one that is sad is Will’s Wife, but that is because she is married to Will, not because of
gas prices.
WillSecretary Will’s Wife
Tom’s idea is pretty bad because it is hard on Bob but not hard on Will. Plus, Tom’s
plan does not reduce the number of gallons of gas Bob and Will consume by very much.
Tom
Is there a better idea than Tom’s idea? You bet there is!
Tom
? ?
Instead of taxing gas, we should tax gas-guzzlers. When douchebags like Will buy
vehicles with poor gas mileage, they shoould have to pay a tax at the time of
sale.
Will
Tax $$
Then, when hard-working people like Bob want to buy a new fuel-efficient vehicle, we can use the tax money paid by people like Will to help
people like Bob afford their new vehicle by giving people like Bob a tax break.
Will
Tax $$
Bob
Tax Break $$
Tax Break $$
CAFE Standard MPG
Tax Break
Better MPG
Vehicles above the CAFE standard would get a tax break. The higher the fuel efficiency,
the more the tax break.
Tax $$Tax Break $$
CAFE Standard MPG
Tax Break
Tax
Worse MPGBetter MPG
Vehicles below the CAFE standard would get taxed at the point of sale. The higher the fuel
consumption, the higher the tax.
Tax $$Tax Break $$
CAFE Standard MPG
Tax Break
Tax
Worse MPGBetter MPG
How will this work out for Bob and Will? Let’s find out....? ?
Bob is happy. He gets to buy a new fuel efficient car with the help of a tax break.
Bob
Bob’s family is happy! They get to go to Disney World!
Bob Yahoo! We get to go to Disney
World!
Will is happy. He doesn’t care if he has to pay more for his SUV. He is a douchebag who will pay anything to
impress his douchebag friends.
Will
Even Will’s wife is happy now. She started an affair with a 22-year-old
bartender as revenge for Will’s affair with his secretary.
WillSecretary Will’s WifeWill’s Wife’s
Boy Toy
Joe Taxpayer is happy because the gas guzzler tax incentive does not increase the national
debt. The Earth is happy because more people will drive fuel efficient vehicles, which
means less carbon emissions.
Joe Taxpayer
Everyone is happy!
One last question:Why would Tom propose an idea that would hurt regular people like Bob?
Tom
? ?
Probably because Tom is a millionaire who made his money selling books, and who has no clue how his dim-
witted ideas will affect normal people…
Tom
Why didn’t Tom think of this great idea?
Tom
? ?
In other words, Tom is more like Will and less like Bob.
TomBob Will
Do all of us a favor Tom. STFU.
Tom