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Gas isn't really a necessity, though, and society already subsidize car use way too much (that is, a lot of the costs to it are paid by society as a whole rather than drivers). Buildings are required to provide parking in some cases, traffic imposes costs on everyone, pollution, wear and tear on roads, cities are designed for drivers rather than walkers, etc. Or current system reflects neither what a market would produce nor what anyone would plan. Obviously, we can't reverse that overnight, but the costs of driving should rise a lot, and that should be offset by people having more money. This all applies much more to cities than rural areas.
Also, sin taxes are among the very best taxes, and the revenue is only part of the benefit. If you tax something, you usually get at least somewhat less of it. Again, I wouldn't expect a total overnight change, but I think the ideal is a gov't entirely funded by sin taxes, land-value taxes, and estate taxes, with maybe income taxes that start at the top rate. And a large SWF to provide a UBD.
It’s a blurry line. I think to most, a car is essential to daily life but less so than other things that like food/ shelter/ etc. I suppose I could see it as public transportation or ride share is equivalent to rent and vehicle ownership is equivalent to home ownership which no longer is a necessity.
When you apply sin taxes funding programs not related to the “sin”, the decrease in revenue could cause an effect where government finds their next alternative sin to tax/ penalize. I don’t find that healthy but I suppose in your scenario, you could just raise the other taxes you mentioned.