I have a very simple solution to America's gasoline problems. My proposed system will have an immediate impact to help with America's with high gasoline costs, minimize CO2 emissions, help America become energy independent, help boost our economy, and help build a bridge to a transportation system that isn't dependent on gasoline.
The theory is to create a revenue neutral tax on gasoline that will make it so alternatives to gasoline are more attractive while at the same time making conservation of gasoline more attractive.
Year One:
Take the total number of gallons of gasoline used in 2008 by Americans and multiply by $1. Divide this number by the number of taxpaying citizens in the US. This should be around $900 per person.
Send each taxpaying citizen a check for the amount above which should be around $900 each.
Add a $1 per gallon tax on gasoline. This is a revenue neutral tax where the tax collected on gasoline goes directly back to the people by way of the checks sent out above.
Year Two:
The same as year one except "2008" become "2009", "$1" becomes "$2", and "around $900" becomes "around $1,800".
Year Three:
The same as year one except "2008" become "2010", "$1" becomes "$3", and "around $900" becomes "around $2,700".
Year Four, Five, Six, etc.
Keep the same system used in year three. It may be desirable to continue with the upward trend.
How This Solution Works
If our country implements this solution there will be a lower demand for gasoline than if the system was not in place. Right away consumers will naturally conserve more so they can use their gas rebate check for more things than just helping them pay for the gas tax. Consumers will naturally want more efficient cars and automakers will naturally fill this demand. The free market will immediately begin investing in non gasoline powered transportation. The system would be simple to implement because it would only adjusting the current tax that exists on gasoline and also sending out more checks like the rebate checks sent out in 2007.
