Tagged with EV Governor McDonnell Virginia Gas Tax inelastic elastic demand construction roadways consumption

A Smart Solution

I think anyone can appreciate the need for a fresh approach to solving transportation funding in Virginia, but the Governor’s latest proposal makes for simply bad policy. Governor McDonnell’s proposal would ax the current 17.5 cent tax on gasoline, replacing the lost revenue by increasing the state’s sales tax, increasing renewals by $15 per year, and adding a $100 fee for owning a hybrid or electric vehicle (EV). To understand why this is bad policy, we need to first understand the problem. That problem … Continue reading