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If the Federal Gov't could come out with a rebate program like this, that capped gasoline prices at $3 for the first 20,000 miles of gasoline per family, and raised the prices (and tax) more dramatically after that, I think you would see some real behavior changes. I'm talking $5+ gallon on everything over a threshold. There would have to be considerations for commercial use, but this would tax the recreational use of gas, and subsidize the lower prices. The problem with just subsidizing a tax holiday or forcing lower prices is that it does nothing to demand.
By John D
