Letters to the Editor
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Irrational behavior
So basically you are discounting any possibility that people sometimes have irrational perceptions of economic conditions, sometimes do not act in their own best interest, sometimes are swayed by psychologically appealing benefits rather than actual economic reality?
No, I actually think irrationality is the status quo. I don't believe in Modern Portfolio Theory (MPT) for example. Just look at the dot.com and housing bubble for exmaples. Or the non-reaction to our deficits and the weak dollar policy. Not to mention the cost of the war.
What I'm saying is that the possibility is very low in this case. The gas tax 'refund' is not a very sexy deal. The housing bubble worked in part because people could put nothing down, use the bank's money for six months, and then flip a house for mega bucks. Or so they thought. That's sexy: do nothing, use other people's money (OPM) and clean up.
So maybe you are right, and there is enough 'buzz' in this plan to alter people's behavior. But it seems a little too lean to me. If Hillary could find a way to claim that she could cut gas to $2.00/gallon, she'd be golden. That would be some buzz.
I agree with you about taxes. If I get a refund, that means I screwed up and paid too much. My girlfriend feels the opposite, which never ceases to amaze me. Her balance sheet looks better than mine, so go figure.
P.S. We might soon know what people in IN think of the gas tax. Nothing like a little empirical evidence!