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 ...
Yeah, Right, THAT'S the ticket..../sarcasm
I love how one can speak of markets forces as well as advocating increased taxation in the same paragraph
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.
Please note that this article is written by a fat, dead comedian, Chris Farrell, or should have been.
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.
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.
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!
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.
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.
Is this coming from Mr F*** Europe!?
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.
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.
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.
Prefer Hawaii's idea of a gas cap--make it nationwide.
High prices come about when demand outpaces supply. Price caps do not reduce demand or increase supply, and always result in shortages.
We should stop buying ANYTHING from the Venezuelan government-owned Citgo stations.
It's time to reduce taxes on Gasoline and open up our lands to explore, drill and pump oil.
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