The
development and use of electric/hybrid autos that use less energy (gasoline)
will shrink the energy (oil) market long term. This is good news for one’s
carbon footprint and, of course, the price of gasoline at the pumps. However, fuel
tax revenues will suffer, because this tax is an excise tax imposed on the sale
of fuel. Less fuel sold, because of electric/hybrid autos, will prompt states
to shift taxation from gasoline to the mileage one drives per year, which is
the coming mileage tax.
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