I think increasing the payroll tax is a mistake. People who don’t own a car should actually be rewarded because they pollute far less, they don’t disable workers, they don’t require traffic police, they don’t emit CO2…
I would replace the payroll tax with a weight tax on huge SUVs.
Technically (as in, as a term of art), it is not regressive. Rather, the gas tax is a flat tax. A regressive tax is one whereby the tax rate decreases as the taxed amount increases. A flat tax is one whereby the tax rate remains the same regardless of the taxed amount.