Gasoline, diesel, and even biofuels can carry a per gallon federal tax. Federal tax on fuel exceeds oil company profits on fuel. Revenue from fuel tax is a major source of income for the treasury.
Federal money is being spent to develop biofuels rather than hydrogen fuel cells, a cleaner form of energy. Our we losing out on better source of energy because it can't raise the same amount of tax revenue as crude oil?
actually federal money is being used to develop hydrogen fuel cells.
Penn State U, has made some recent advances in Hydrogen production, to increase the yield vs substrate reacted.
The biggest problem industry is seeing with hydrogen is finding an organism that will efficiently produce enough product to keep up with demand.
It can be taxed like any other gas that is sold for industrial use.
The gas can be taxed, but the real problem is that when the populations at large realise that it’s possible to generate Hydrogen, some will try to do it – some will be successful and manufacture Hydrogen at low cost, reducing tax yields….. i.e it’s not like fossil based fuels that require a sizeable investment to extract from the earth, and can therefore be controlled by the uber wealthy. Relatively modest (millions rather than tens of millions) sums will be needed to produce Hydrogen as opposed to the vast resources needed to extract and transport oil and gas.