Monday, July 26, 2004
Higher Gas Tax Means more Hours of Work?
One more post today. I am upset as usual by the fact that people all around me complain about gas prices. Gas prices are obscenely low not only from a historic perspective (adjusting for inflation), but also from a geographic perspective. I am not a big fan of taxes in general, but specific taxes are another question. I often annoy my more conservative friends because I see justification for an inheritance tax. This NBER paper suggests increasing taxes (to a point) on gasoline would not only decrease car use, but also increase hours of work. (Obviously there are some jobs upon which the opposite effect would occur. Jobs that require a great deal of driving, for example. However, it is hard to think of a job that requires a great deal of driving where decreasing the amount of time driving wouldn't at least increase efficiency in some sense. I am thinking of trucking and incomplete loads on a truck). I just wanted to throw it out there.