Here’s a little thought experiment for you.
Let’s assume that the Greenies get their wish, and all fossil fuel-burning cars were replaced with electric cars, by law.
Ignore all practical issues (because the Greens always do), and ponder this thought.
Right now, gasoline is taxed by the FedGov at 18.4 cents per gallon. (Put those guns away, and concentrate on the issue at hand.) How do you think the Gummint is going to replace that “lost” revenue (~$25 billion per annum)?
Ah, stop thinking about it, because the poxy BritGov already has.
Ministers have been told to consider a national system of road tolls to compensate for the huge loss in revenue from fuel duty when electric cars become mainstream on the back of new research.
[T]his revenue stream looks set to shrink significantly by 2040 when UK ministers plans to ban the sale of vehicles with combustion engines in a bid to persuade drivers to switch to electric cars.
A new study by Bloomberg News Energy Finance claims a road toll scheme charging up to 9p a mile should be introduced to compensate for the £14 billion lost in fuel duty revenue – a move that would cost motorists £710 a year.
(I should point out that said BritGov currently levies a fuel tax of just under 58p per liter — which is the equivalent of $2.91 (!!!!) per U.S. gallon. It’s the Brits who should be reaching for the guns… oh wait, they don’t have any. Sucks to be them.)
I haven’t even touched on how the states will recover the lost revenue…
Remember Kim’s Iron Law of Taxation: Never ever allow the government to create a new method of taxation / tax revenue stream because once created, it will never disappear.