Corrections
In Addicted to Oil I said the United States has 3% of the world’s population. The correct amount is 4.5%.
The rule of thumb has been that one penny/gallon tax on gasoline raises $1 billion in revenue. However, the US consumed 146 billion gallons of oil in 2006 so a more accurate number is 1 penny/gallon raises $1.5 billion. This has been changed in the Answer in two parts Part I.
Because of the above adjustment the tax and rebate were changed so that the tax is $1 increase per gallon per year to three dollars and the rebate is $500 for the first year, $1000 for the second year, and $1500 for the third and subsequent years. The tax is fixed; the rebate goes up or down depending on how much tax is actually collected. Still every penny that is collected as tax goes back to the consumer in the rebate.
One should also keep in mind that this is per person so that is $6000 for a family of four.
The rule of thumb has been that one penny/gallon tax on gasoline raises $1 billion in revenue. However, the US consumed 146 billion gallons of oil in 2006 so a more accurate number is 1 penny/gallon raises $1.5 billion. This has been changed in the Answer in two parts Part I.
Because of the above adjustment the tax and rebate were changed so that the tax is $1 increase per gallon per year to three dollars and the rebate is $500 for the first year, $1000 for the second year, and $1500 for the third and subsequent years. The tax is fixed; the rebate goes up or down depending on how much tax is actually collected. Still every penny that is collected as tax goes back to the consumer in the rebate.
One should also keep in mind that this is per person so that is $6000 for a family of four.
posted by Geoff Berg | 2:51 PM
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