CNSNews reports that Rep. Dingell wants to raise gas taxes 50 cents per gallon and end the mortgage tax exemption for houses over 3000 sq. ft. in order to fight global warming.

The 50-cent gas tax stands in defiance of history. Did anyone cut usage when we went from $2.50/gal to $3.00/gal? We’ve already been trying to reduce fuel usage because of price. The money that goes into this tax hike will come out of other activities, not gasoline usage.

There are a lot of houses that are under 3000 finished sq. ft., but the unfinished basement pushes the house over the limit. If the rule applied to finished square footage, money wouldn’t be spent on drywall, plumbing, furniture, and so forth. If the rule were on total square footage, then it’s an instant tax increase on families of thousands of dollars a year. That mortgage tax exemption is pretty important. The federal tax refund (overpayment) is often used to pay the property tax.

More houses would be unaffordable. Smaller houses would that use less materials and labor would be built, another economic detriment.

The mortgage tax exemption isn’t the sole factor in judging the purchase of a new home, but it is a factor. Unless one engages in home speculation, new homes are bought generally for 30 years. It is a decision which needs a reasonably stable economic environment. I can’t go back in time and pick a smaller home. Given today’s market, homes have a tough time selling and meeting the buyout of the loan.

Perhaps the worst thing about this idea is that this hike would be an income tax increase. You can have a 6000 sq. ft. house as long as you’re not making any net income. The income tax is a tax on growth. These kinds of taxes prevent us from improving. It further separates the haves from the have-nots. The power to tax is the power to destroy, and the income tax is the worst of the lot.

I’m confident my representative will be casting a no vote on this idea.