Remove Federal Gas Tax on Alternate Fuels to encourge their production and sales.
Proposal:
Encourage the growth of US made alternate fuels in the US by a graduated reduction in the federal fuel tax. (currently: 18.4 cents/gal)
Logic:
The current fuel tax is a usage fee put into the transportation and roads fund. This fund is usually raided by entitlements and the money never put back in. Therefore, lowering the tax for alternate fuels is not impacting the transportation fund at all. It just makes a smaller pot for out of control entitlements to rob. This proposal would provide incentive to increase home produced energy and force some of the more out of control entitlements to experience a little restraint.
Examples:
So if bio-diesel or 100% ethanol or gas synthesized from say coal or shale were in a pump the cost would be at least 18.4cents less than oil products would have to pay.
If you had F-85 it would get a discount of 2.76 cents/gal in federal gas tax.
Benefits:
It cost the government nothing, encourages creation of alternate fuel at the expense of imports and imposes a tiny bit of fiscal restraint on raiding of a trust fund.
Posted by: 3dc 2006-05-20 |