Gas Mileage - Sunday letters: Gas prices - Dallas Morning News

The proposed gas tax holiday will reduce the price only until the price increases surpass the reduction, which at the current rate will take about three weeks. So, if the ethanol is 10 percent of the gas, and it reduces the gas mileage by 10 percent – well, are there any 5-year-olds out there who can do the math? I would suggest a national sales tax on new vehicle sales based on the estimated EPA mileage. Buyers of vehicles with an estimated mileage of, say, 25 miles per gallon average and greater would pay no federal gas sales tax when the vehicle is purchased. Those vehicles getting less than 25 miles per gallon would be assessed a national gas sales tax of 2 percent of the vehicle sales price for each mile per gallon less than the 25 mile per gallon standard. For example, a vehicle with an estimated mileage of 15 mpg would pay a 20 percent gas sales tax. read more

[Tags]gas, sales, price, supply, tax, mileage, gas mileage[/Tags]

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