Ray Dillinger wrote:
Hmmm. It seems unfair to slap a huge tax on something if there are *laws* in place requiring people to have and use it. I'm thinking specifically of clothes, since you mentioned them. Is clothing particularly heavily taxed?
not that I knew of. I included it for the *economic* argument - there are other horizonal price structure items that are not heavily taxed - food, for example.
Since there are no laws requiring people to use gasoline/petrol, taxing it seems more fair to me - it at least presents people with a choice so they can pay up front (for an EV) or during the vehicle's lifetime (for taxes). Or if they are smart and fortune smiles upon them they can arrange their lives so they don't need cars.
something similiar holds for tobacco. however, fact is that almost nobody reduces is driving or smoking habits if prices go up. there is a short drop in consumption, but as the shock wears off, consumption returns to normal. we're speaking a few days, at most a week or two here.