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Higher Gas Tax? Smart Move
BusinessWeek Online ^ | AUGUST 19, 2005 | Christopher Farrell

Posted on 08/31/2005 11:37:33 AM PDT by kddid

Raising it to 50 cents or $1 per gallon would push conservation and send a signal to America's enemies. It's the surest way to cut oil dependence

Thanks to rising oil prices, the price of running a modern economy keeps spiraling higher. Crude has more than doubled since 2003, to some $65 a barrel, hitting a peak of $67-plus earlier this month. The average price for a gallon of gas has climbed to a record national average of $2.55. From Los Angeles to Boston, we're all suffering from price shock when we pull into a gas station.

What sort of action should government take in response to high energy prices? How about hiking the federal tax on gasoline? Yes, you read that right. Washington should raise the federal tax on gasoline from its current 18.4 cents a gallon to 50 cents -- or even $1.

STUFFED WITH PORK. The payoff from a steep gas tax could be huge, ranging from reduced reliance on Persian Gulf oil producers to a surge in technological innovation in energy. What's more, an audacious gas-tax initiative would give comfort to our allies and unsettle our enemies -- two big pluses during the war against terror and the fighting in Iraq.

True, Congress recently passed new energy legislation. But to call it pork-laden would be an insult to the sausage-making industry. The bill had little to do with savvy national energy policy and everything to do with rewarding well-heeled constituencies, such as the oil and gas industry, ethanol farmers, and nuclear power companies -- not to mention indulging in such ludicrous moves as extending daylight savings time.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: energy; gasprices
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When I came to work this morning, gas was $2.54 a gallon. At lunchtime the price was $2.99 a gallon. I started looking for the tax rates per gallon - hoping they could be cut, and I came across this little gem. That sounds like the ticket - raise gasoline taxes by $1 a gallon.
1 posted on 08/31/2005 11:37:34 AM PDT by kddid
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To: kddid

I think it is a good idea. Until we wean ourselves off the Saudi teat, we're playing their game.


2 posted on 08/31/2005 11:39:50 AM PDT by piceapungens
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To: kddid

Raising gas prices by a dollar, for taxes? That's the ticket? Surely there is some sarcasm in your post.


3 posted on 08/31/2005 11:39:53 AM PDT by FreeDemm
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To: kddid
Nothing anywhere ever has been taxed into prosperity
4 posted on 08/31/2005 11:42:08 AM PDT by xcamel (Deep Red, stuck in a "bleu" state.)
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To: kddid

The bill had little to do with savvy national energy policy and everything to do with rewarding well-heeled constituencies, such as the oil and gas industry, ethanol farmers, and nuclear power companies -- not to mention indulging in such ludicrous moves as extending daylight savings...
-----
Exactly and so pork-laden, it actually got voted for by the far left, even though it was Bush's creation. The domestic policy in this country is still IN GRAVE TROUBLE and the cause is Washington politics. With all the major issues revolving around energy, the best the lame Congress could do was this -- it shows who they are working for and it sure as hell is not the people of America and the betterment of the country.


5 posted on 08/31/2005 11:43:14 AM PDT by EagleUSA
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To: kddid
I have a better idea - lets raise the taxes on hack liberal media pundits and lawyers
6 posted on 08/31/2005 11:43:28 AM PDT by Nat Turner (DO NOT TRY THIS AT HOME)
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To: piceapungens

What am I missing here. There is a giant gap I have between, we raise gas prices $1 for taxes and less reliance on saudi oil. How again is raising taxes going to make us use less oil, because people won't use as much due to insane prices?? That hasn't stopped anyone yet.


7 posted on 08/31/2005 11:43:40 AM PDT by FreeDemm
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To: kddid

Yep. Let's raise taxes on gas by $5 a gallon...and the minimum wage while we're at it. /sarcasm


8 posted on 08/31/2005 11:44:12 AM PDT by peyton randolph (Warning! It is illegal to fatwah a camel in all 50 states)
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To: kddid

I just love it when New Yokers tell me that gasoline needs higher taxes. When I tell them that would hurt too many people they say you can just ride the subway or take a cab or even a bus. When i query them about those of us without those tools, they just think I am dumb for not living in New York.


9 posted on 08/31/2005 11:44:19 AM PDT by pikachu (Don't MAKE ME get my flying monkies out!)
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To: xcamel

It is a certain way to weaken our economy and make us more vulnerable to our enemies.


10 posted on 08/31/2005 11:44:37 AM PDT by Loyal Buckeye
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To: kddid

If that thinking worked Europe would be driving no gas cars.


11 posted on 08/31/2005 11:45:18 AM PDT by x5452
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To: FreeDemm

It is precisely because higher gas prices hasn't made us use less oil, that they will keep rising higher still.

They will rise to whatever level is necessary for us to finally react to the price and use less of it.


12 posted on 08/31/2005 11:46:04 AM PDT by Mount Athos
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To: pikachu

I just love it when New Yokers tell me that gasoline needs higher taxes.

What do you expect from sheeple that pay 8$ a pack for cigarettes?

13 posted on 08/31/2005 11:46:12 AM PDT by Nat Turner (DO NOT TRY THIS AT HOME)
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To: kddid

Did you forget your sarcasm tag?


14 posted on 08/31/2005 11:46:29 AM PDT by VRWCmember
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To: piceapungens
I think it is a good idea. Until we wean ourselves off the Saudi teat, we're playing their game.

Why not a $250.00 a gallon tax then?

That’ll sure smack the Saudi tits around!

15 posted on 08/31/2005 11:46:44 AM PDT by dead (I've got my eye out for Mullah Omar.)
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To: FreeDemm

How again is raising taxes going to make us use less oil, because people won't use as much due to insane prices?? That hasn't stopped anyone yet.
------
And it won't...this asinine idea has zero merit and would only serve to negatively impact the economy in a great way. People have to have gas to get where they need to go and they still have to pay for it. Maybe less of it, but they still need it. Only the freakin' liberals would do such a draconian thing as raise gasoline taxes.

What these idiots don't get, is that people do not have alternatives in most cases. This is insane.


16 posted on 08/31/2005 11:47:21 AM PDT by EagleUSA
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To: kddid

I hope this is heavy sarcasm in your comments and post. Because if it is not...UR an IDIOT!!!!


17 posted on 08/31/2005 11:49:52 AM PDT by el_texicano (Liberals, Socialist, DemocRATS, all touchy, feely, mind numbed robots)
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To: kddid

Someone at that bussiness journal needs a vigorous application of a fence post upside their head just to get their attention. Then someone needs to explain to this college educated idiot that hosing the people by raising the taxes so that the political class can line their pockets with even more pork money for PC projects is not gonna get us off the Saudi teat.


18 posted on 08/31/2005 11:51:35 AM PDT by Nebr FAL owner (.308 reach out & thump someone .50 cal.Browning Machine gun reach out & crush someone)
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To: FreeDemm; VRWCmember

I did say I was hoping gas taxes could be cut. I thought it was obvious, but maybe it wasn't. I surprised you aren't busy wiping the sarcasm off of you keyboard. On the same subject, if President Bush were to cut gasoline taxes, how much difference would it make per gallon? Anyone know?


19 posted on 08/31/2005 11:51:43 AM PDT by kddid (Hope springs eternal.)
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To: kddid

Americas enemies are killing us with the gas we must have
to survive..

We either need to find something else fast
or take it from them by force.

imo


20 posted on 08/31/2005 11:51:44 AM PDT by joesnuffy (Save the whales. Redeem them for valuable prizes.)
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To: kddid
RAISE TAXES?

Yeah, Right, THAT'S the ticket..../sarcasm

21 posted on 08/31/2005 11:52:01 AM PDT by goodnesswins (Our military......the world's HEROES!)
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To: EagleUSA

I love how one can speak of markets forces as well as advocating increased taxation in the same paragraph


22 posted on 08/31/2005 11:52:17 AM PDT by ElRushbo (Harley Riders against Elton John)
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To: piceapungens
Raising it to 50 cents or $1 per gallon would push conservation and send a signal to America's enemies. It's the surest way to cut oil dependence

Oh man, it really worked for Europe didn't it. Most expensive gas in the world. Really helped them kick the car habit? Again, this is an EVOLUTIONARY process. What we need is LESS Govt interference not MORE. Instead of more TAXES for Washington to waste, especially recessive ones like GAS. How about we give tax cuts to people who buy or companies that build, alternate and hybrid cars. People who build business to supply and fix the alternative fuels. Sorry but the ONLY solution is going to take time. Kicking the gas tax us is a STUPID idea. Washington does NOT need any more money.

23 posted on 08/31/2005 11:52:55 AM PDT by MNJohnnie
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To: piceapungens; kddid; dead; Grampa Dave; SierraWasp

Please note that this article is written by a fat, dead comedian, Chris Farrell, or should have been.


24 posted on 08/31/2005 11:53:25 AM PDT by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do it, but we're gonna getcha)
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To: kddid

High energy prices are in large measure because of our failure to introduce a comprehensive plan to shift our strategic vulernability on foriegn sources of energy.
The latest energy bill only scratched the surface of this issue.

Perhaps a wholesale tax structure could be introduced to stabilize prices over the long run, to address the short term inflexibility in demand that our sources and producers exploit to wring high prices from consumers.

But temporaritly lowering our domestic consumption only ultimately lengthens the time that we will remain dependent. A retail gas tax seems like a expensive, costly band-aide on a deeper problem.


25 posted on 08/31/2005 11:53:57 AM PDT by Wiseghy (Part of the True Conservative Majority of Kaleefahrnya)
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To: kddid
Raising it to 50 cents or $1 per gallon would push conservation and send a signal to America's enemies. It's the surest way to cut oil dependence

First, why push conservation? There is no oil or gas shortage, all this would do is create a surplus of gasoline and affect the price up and down based on supply and demand in any given region. Perhaps even a raise in price to compensate for falling sales.

What signal does it send to our enemies? "We can sure tax the crap out of our populace" or "We don't buy stuff that costs too much"...?

The surest way to cut oil dependence is to invent alternative fuels or start using our own resources instead of counting on those of foreign nations. Increasing the amount of fuels in reserve by conserving them only ensures that there will be a surplus and does nothing to solve the problem.

Raising taxes never solves anything and government imposed behavior modification (forced conservation, prohibition, gun control...) always does more harm than good.

Just my opinion.

26 posted on 08/31/2005 11:55:43 AM PDT by infidel29 ("It is only the warlike power of a civilized people that can give peace to the world."- T. Roosevelt)
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To: kddid

We don't yet know the impact of current high prices on the economy and this guy wants another $1/gallon increase - and give it to the Federal Government at that! Unreal!


27 posted on 08/31/2005 11:56:38 AM PDT by DTogo (U.S. out of the U.N. & U.N out of the U.S.)
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To: kddid
I came across this little gem

Lots of these kinds of gems coming from them these days. Business Week has taken a big left turn which is exactly why I cancelled my subscription.

28 posted on 08/31/2005 11:56:57 AM PDT by Mase
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To: kddid
STUFFED WITH PORK. The payoff from a steep gas tax could be huge, ranging from reduced reliance on Persian Gulf oil producers to a surge in technological innovation in energy. What's more, an audacious gas-tax initiative would give comfort to our allies and unsettle our enemies -- two big pluses during the war against terror and the fighting in Iraq.

Sure. It'll also cause a recession. Who writes this cr@p!?
29 posted on 08/31/2005 11:57:10 AM PDT by Antoninus (Dominus Iesus, miserere nobis.)
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To: biblewonk

Ping.

Seems to me John Anderson talked about raising Federal gas taxes by 50¢/gallon back in 1980 when he ran for President (Independent).

Just consider what we'd be driving today if this idea had been enacted back then.


30 posted on 08/31/2005 11:59:07 AM PDT by newgeezer (A conservative who conserves -- a REAL capitalist!)
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To: newgeezer
Just consider what we'd be driving today if this idea had been enacted back then.

Is this coming from Mr F*** Europe!?

31 posted on 08/31/2005 12:00:20 PM PDT by biblewonk (Mark 7:13 Making the word of God of none effect through your tradition,)
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To: kddid

The universal solution. Confiscate more money and give it to our great white fathers in DC. They have such a good track record with our money.

Higher prices=lower consumption,right? Fine, let the marketplace cause the higher prices.

Oh wait. It seems that I am wrong. $4 a gallon will discourage consumption ONLY IF $1 of that is going to Washington.


32 posted on 08/31/2005 12:01:33 PM PDT by ChildOfThe60s (If you can remember the 60s......you weren't really there.)
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To: Wiseghy

Wiseghy -- you're right that _temporarily_ lowering our domestic consumption will only lengthen our dependency. We need to _permanently_ lower our domestic consumption to the point where we can supply our energy needs ourself or by trading with countries that don't want to kill us.

I love how all the free-market analysis out there on these right-wing sites never takes into account what Adam Smith clearly documented in the Wealth of Nations as an exception to the endorsement of unfettered free trade.

Basically put, you shouldn't trade with people who want to kill you.

Why should we stand idly by while SUV-driving 'patriots' go to the pump and send their dollars overseas to the middle east where fanatics are trained that America is the great Satan and that to martyr themselves in the course of jihad will land them in eternal paraside?

I believe in free markets, but funding both sides of the war on terror is insane, and Bush has done nothing to reduce our dependence on foreign oil. Sure, let's drill more in Alaska -- that'll give us enough gas for a few months. But we've got to get serious about technologies that will allow us to maintain our current standard of living while consuming less fuel and giving less money to the terrorists.


33 posted on 08/31/2005 12:02:19 PM PDT by paulcox1978
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To: kddid
Brilliant--let the govt take MORE of our money. Let's make it harder for the less affluent to buy gasoline. Let's take money that might have been donated to charities to help Katrina's victims, and let the govt squander it instead.

The free market is going to do all that's possible to get people to conserve--robbing us to make the government even fatter is not going to help. And you can bet the liberal elitists who support this have enough money to avoid the consequences of their policies.

34 posted on 08/31/2005 12:02:40 PM PDT by American Quilter
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To: kddid

Prefer Hawaii's idea of a gas cap--make it nationwide.


35 posted on 08/31/2005 12:03:28 PM PDT by lilylangtree
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To: lilylangtree
"Prefer Hawaii's idea of a gas cap--make it nationwide."

There's the free market spirit!
36 posted on 08/31/2005 12:06:31 PM PDT by paulcox1978
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To: lilylangtree

High prices come about when demand outpaces supply. Price caps do not reduce demand or increase supply, and always result in shortages.


37 posted on 08/31/2005 12:09:59 PM PDT by CGTRWK
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To: piceapungens
We must wean ourselves off the Venezuelan teat as well.

We should stop buying ANYTHING from the Venezuelan government-owned Citgo stations.

38 posted on 08/31/2005 12:10:40 PM PDT by ElCapusto (For ENGLISH, press one.)
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To: FreeDemm; kddid
He had best be.

The author simply fails to understand the first principles of economics in a capitalist arena.

While it would not reduce our dependence on foreign oil one whit, it would certainly propel us into a recession, and cripple all industries that use oil. Certainly, every American auto maker would be in deep(er) trouble, and every American air carrier would go bankrupt quickly, not to mention trains and buses.

We need and use oil and there it is.

Lots and lots of oil. Conservation could potentially save a small percentage, but the saved crude would simply go to China, leaving us with staggering prices for refined product and no way out.

The EU socialist types are doing it right now, as they whistle past the graveyard.

It's time to reduce taxes on Gasoline and open up our lands to explore, drill and pump oil.

39 posted on 08/31/2005 12:11:51 PM PDT by bill1952 ("All that we do is done with an eye towards something else.")
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To: kddid
Tax government spending!
40 posted on 08/31/2005 12:15:32 PM PDT by Atlas Sneezed (Your FRiendly FReeper Patent Attorney)
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To: kddid

I believe this "genius" overlooked the cost of shipping products to market. So in addition to the government picking our pockets, product prices rise also.

Hey, anyone know if Hawaiian electric power plants are fueled by petroleum?

My understanding is the greenies in Hawaii have blocked nuclear plants. I wonder how much oil it takes to run the entire state's electrics?


41 posted on 08/31/2005 12:25:11 PM PDT by CATravelAgent (Suppose you were an idiot, and suppose you were a member of Congress. But I repeat myself.)
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To: kddid

Lets tax the clymers, who want higher taxes. Tax them until they become bankrupt.


42 posted on 08/31/2005 12:31:44 PM PDT by Grampa Dave (Jamie Gorelick is responsible for more dead Americans(9-11) than those killed in Iraq.)
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To: paulcox1978
I love how all the free-market analysis out there on these right-wing sites

I usually don't point fingers and yell troll, but...

43 posted on 08/31/2005 12:32:16 PM PDT by 11Bush (No outstanding felonies, but my life has been one long misdemeanor.)
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To: kddid

I am eagerly awaiting this "Pelosi-Rangel Energy Conservation Bill".


44 posted on 08/31/2005 12:34:03 PM PDT by pfony1
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To: kddid
If $1 is good, wouldn't $2 be better?

How about $10?

Liberal thinking!

45 posted on 08/31/2005 12:36:46 PM PDT by Publius6961 (Liberal level playing field: If the Islamics win we are their slaves..if we win they are our equals.)
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To: Mount Athos

We use too much damn money also.

Greenspan needs to raise interest rates since we can't control ourselves.


46 posted on 08/31/2005 12:44:18 PM PDT by VeniVidiVici (When a Jihadist dies, an angel gets its wings)
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To: VeniVidiVici

You can mock the basic economic laws of supply and demand, but it won't change them.


47 posted on 08/31/2005 12:46:48 PM PDT by Mount Athos
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To: pikachu

You might suggest to them that we place insane taxes only on gas sold within city limits, or along mass transit routes. lol

It just feels like transportation communism to me. Ride with all the other sheep, single file through the ticket lines, please. You also have the freedom of private transportation, but we're gonna tax your pants off if you do.


48 posted on 08/31/2005 12:47:44 PM PDT by ConservativeWarrior (thos)
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To: Mount Athos

I wasn't mocking supply/demand. I was mocking taxes to artificially affect demand.


49 posted on 08/31/2005 12:53:45 PM PDT by VeniVidiVici (When a Jihadist dies, an angel gets its wings)
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To: kddid
Better Plan: Suspend all fuel taxes for the duration. Then, after the crises is past, eliminate them. Time for the flat tax, but not at the rates proposed. If 10% is enough for Godalmighty, it's plenty for Uncle Sugar, and the 50 little Sugars.
50 posted on 08/31/2005 12:57:24 PM PDT by chesley (Liberals...What's not to loathe?)
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