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To: Deek1969

Sure, the tax suspended would be nice and immediately lower fuel costs, but conversely, it’ll also raise the demand for the fuel, thus pushing prices right back to where they currently are (if not higher).

While I’m all for keeping money out of the hands of the government, ultimately, this will not reduce consumption, which is what we have to be able to do to effect prices long term, or substantially increase supplies.

Short term, it’s a good idea, but let’s face it, it ain’t gonna happen.


9 posted on 04/30/2008 8:30:05 AM PDT by fightinbluhen51 ("...If it moves, tax it, if it moves faster, regulate it, if it stops, subsidies it.")
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To: fightinbluhen51

The reason that oil profits are so high is because they have nowhere to reinvest the money. They can’t build new pipelines, they can’t drill, etc. So they diperse to their shareholders, many of whom are 401k employees.

If the tax is reduced, demand will raise fuel prices back to these levels. So the tax reduction must be accompanied by a repeal of the regulations that are hamstringing production.

More available oil will reduce the price of oil. Econ 101


22 posted on 04/30/2008 8:54:40 AM PDT by Retired Greyhound
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To: fightinbluhen51

I’m also all for keeping money out of the hands of the Saudis, Venezuela, Iran and Russia. I think real patriots should be reducing consumption and developing alternatives. With freedom comes responsibility. I do not see this emphasized enough by Freepers.

The gasoline tax also funds roads: do we want to pay tolls every time we leave our driveways? Or are we going to borrow more from the Chinese to repair our roads, or just let potholes take years off our cars? Think, people!


29 posted on 04/30/2008 9:30:16 AM PDT by MoreGovLess (If Hillary wins in November, blame Rush!)
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