That sounds complicated. A simpler idea would be to use the revenues to reduce the social security payroll tax (a very regressive tax) for low income earners. That is, make it tiered like income tax.TimeHorse wrote:As for taxing gasoline, I do want to tax it and remove subsidies but I also want a kind of voucher system set up so that the poor can have their fuel use subsidized.
Gasoline better not be purely inelastic, because then raising gas taxes won't have any effect on consumption.TimeHorse wrote:EDIT: The term I'm looking for is Inelastic Good. Gasoline is an inelastic good because as prices go up, people still need it so they'll pay any price. It doesn't follow normal supply and demand and the Price Elasticity of Demand = 0. (Thank you NPR's Planet Money!)