Cato takes on the Pigou Club
I do have one question for the authors: If Congress were considering repeal of the gasoline tax together with an income tax increase to make up the lost revenue, would you favor this revenue-neutral change in the tax mix?
Update: Jerry Taylor from Cato emails me:
The answer to your question is that we would favor an elimination of federal highway and mass transit spending to correspond with an elimination of the federal gasoline tax. Highway and mass transit programs are more appropriately shouldered by state and local governments.Judge for yourself whether that answers the question.