Why Friedman’s Gas Tax Idea Stinks

Tom

This is Bob Bluecollar. Bob is a regular, hard-working American with a wife, three kids, and a mortgage.

Bob

This is Will Whitecollar. Will makes six figures, eats at fancy restaurants, and cheats on his wife with his 23-year old

secretary.

Will

Bob and will are happy!(see the smiles?)

Bob Will

Bob and Will both drive about 18,000 miles per year.

Bob Will

18,000 18,000

Bob drives a 2001 Chevy S10 that gets 19 mpg. Bob would like to buy a new

car that gets better mileage, but Bob has kids to feed and bills to pay.

Will

18,00019mpg

18,000

Bob

Will drives a 2011 Cadillac Escalade that gets 13 mpg. Will doesn’t need a huge SUV, but

Will is douchebag who is obsessed with impressing his white collar buddies, and

besides, he has lots of money.

Bob Will

18,00019mpg

18,00013mpg

Both Bob and Will pay the same for gas - $3.50 per gallon.

Bob Will

18,000 18,00019mpg 13mpg$3.50 $3.50

Bob pays $3315 per year for gas.Will pays $4846 for gas.

Bob Will

18,000 18,00019mpg 13mpg$3.50 $3.50

=$3315 =$4846

Bob pays about $276 per month for gas, while Will pays $403.

Bob Will

18,00013mpg$3.50$4846

18,00019mpg$3.50$3315

12 mo$403

12 mo$276

This is Tom. Tom wrote a couple of books. Tom thinks the government should increase taxes on gasoline by

$1 per gallon.

Tom

Bob is very concerned about Tom’s idea because Bob’s paycheck is stretched as it

is. Will, on the other hand, could care less. He has money.

TomBob Will

Is Tom’s $1 per gallon tax a good idea? Let’s find out....

TomBob Will

? ?

Both Bob and Will would have to pay $4.50 per gallon if Tom has his way.

Bob Will

18,000 18,00019mpg 13mpg$3.50 $3.50$4.50

$4.50

Under Tom’s plan, Bob would have to pay almost $1000 more per year in gas.

Will would have to pay almost $1400 more.

Bob Will

18,00013mpg$3.50$4846

18,00019mpg$3.50$3315

$4.50$4.50

$4263$6230

Will is still happy. Will doesn’t really care about paying more for gas. He’ll pay

whatever it takes to keep impressing his douchebag friends with his living-room-on-

wheels SUV.

Bob Will

18,00013mpg$3.50$4846

18,00019mpg$3.50$3315

$4.50$4.50

$4263$6230

Bob is sad. Unlike Will, Bob does care about how much he pays for gas. Because he now pays more, he can’t afford the newer, more

fuel efficient car he has been dreaming about buying.

Bob Will

18,00013mpg$3.50$4846

18,00019mpg$3.50$3315

$4.50$4.50

$4263$6230

Now, Tom might say, “But, if gas prices are higher, people will drive

less!”

TomBut, if gas prices are

higher, people will drive less!!

That is true. Bob still has to drive to work, though. So to drive fewer miles, he is going

to have to skip that family road trip to Disney World he was planning. Now Bob’s family is

sad. Thanks a lot, Tom.

Bob

However, Will won’t drive less. He has money to burn. He is going to keep his Cadillac SUV, keep eating at nice restaurants, and keep banging his

secretary. The only one that is sad is Will’s Wife, but that is because she is married to Will, not because of

gas prices.

WillSecretary Will’s Wife

Tom’s idea is pretty bad because it is hard on Bob but not hard on Will. Plus, Tom’s

plan does not reduce the number of gallons of gas Bob and Will consume by very much.

Tom

Is there a better idea than Tom’s idea? You bet there is!

Tom

? ?

Instead of taxing gas, we should tax gas-guzzlers. When douchebags like Will buy

vehicles with poor gas mileage, they shoould have to pay a tax at the time of

sale.

Will

Tax $$

Then, when hard-working people like Bob want to buy a new fuel-efficient vehicle, we can use the tax money paid by people like Will to help

people like Bob afford their new vehicle by giving people like Bob a tax break.

Will

Tax $$

Bob

Tax Break $$

Tax Break $$

CAFE Standard MPG

Tax Break

Better MPG

Vehicles above the CAFE standard would get a tax break. The higher the fuel efficiency,

the more the tax break.

Tax $$Tax Break $$

CAFE Standard MPG

Tax Break

Tax

Worse MPGBetter MPG

Vehicles below the CAFE standard would get taxed at the point of sale. The higher the fuel

consumption, the higher the tax.

Tax $$Tax Break $$

CAFE Standard MPG

Tax Break

Tax

Worse MPGBetter MPG

How will this work out for Bob and Will? Let’s find out....? ?

Bob is happy. He gets to buy a new fuel efficient car with the help of a tax break.

Bob

Bob’s family is happy! They get to go to Disney World!

Bob Yahoo! We get to go to Disney

World!

Will is happy. He doesn’t care if he has to pay more for his SUV. He is a douchebag who will pay anything to

impress his douchebag friends.

Will

Even Will’s wife is happy now. She started an affair with a 22-year-old

bartender as revenge for Will’s affair with his secretary.

WillSecretary Will’s WifeWill’s Wife’s

Boy Toy

Joe Taxpayer is happy because the gas guzzler tax incentive does not increase the national

debt. The Earth is happy because more people will drive fuel efficient vehicles, which

means less carbon emissions.

Joe Taxpayer

Everyone is happy!

One last question:Why would Tom propose an idea that would hurt regular people like Bob?

Tom

? ?

Probably because Tom is a millionaire who made his money selling books, and who has no clue how his dim-

witted ideas will affect normal people…

Tom

Why didn’t Tom think of this great idea?

Tom

? ?

In other words, Tom is more like Will and less like Bob.

TomBob Will

Do all of us a favor Tom. STFU.

Tom