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by kanox 2034 days ago
> Right now, EVs are absolutely creating an regressive tax situation with regards to fuel. Those who can afford to buy newer, efficient cars can usually save money on tax over those who can't. For electric, it was worse - because they do tend to be more expensive to purchase up front, and they paid no fuel tax at all.

Encouraging the adoption of cleaner but more expensive technology is always going to be regressive, no way around this.

A lot of environmental regulation has strong regressive effects, it hits coal miners much harder than people sipping 10$ coffee on their macbook.

1 comments

I'm of mind that all government "monetary disincentives", e.g. fines, sin taxes, pollution taxes should go into fee and dividend scheme. Solves both moral hazard (we want more fines/driving because we need revenue) and regressive nature of those.
I thought of that for a long time. Finally decided that fines should be handed over the Social Security Admin and booked against the offenders account.