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By beancounter (registered) | Posted May 27, 2008 at 22:35:26
Wow, Ted, you have great faith in our governments.
I am trying to visualize how this would work in terms of being revenue neutral. Wasn't that what was supposed to happen with the GST?
I am thinking though that it would be a kind of moving target. As the gas tax bite takes hold, people start adjusting their driving habits, use less gasoline and the revenue drops. Would that then necessitate a retrenchment in the income tax cuts?
The other thing is that the suggested tax regime under alternative one may not be entirely equitable, as there are people who really need to drive for work reasons, such as people in the building or repair and service trades.
Perhaps your second alternative would be better, as you said. Market forces would allow people to make adjustments that they feel are best for them, as opposed to having the tax authorities make decisions for them.
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