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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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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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To: 11Bush
Me: I love how all the free-market analysis out there on these right-wing sites

11Bush: I usually don't point fingers and yell troll, but...


lol... right-wing and left-wing aren't bad words.

I voted for Bush in 2000, before he abandoned all truly conservative principles (free trade, fiscal responsibility, honesty, etc.) and turned his administration over to the religious extremists for whom somehow denying rights to gay people was the most important issue. Maybe Pat Robertson and Jerry Falwell were right -- if we stop gay people from getting married, we won't get attacked again.
51 posted on 08/31/2005 1:03:33 PM PDT by paulcox1978
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To: kddid
Oil is 120% more affordable than it was in 1980.

In 1980, the average American's inflation adjusted annual disposable income could buy 180 barrels of oil.
In 2005, the average American's inflation adjusted annual disposable income can buy 400 barrels of oil.

In 1980, disposable income per person was $16,940.
In 2004, disposable income per person was $27,230.
(Constant 2000 dollars)

In 1980, a barrel of oil cost $94.
In 2005, a barrel of oil costs $68.
(Constant 2004 dollars)

52 posted on 08/31/2005 1:24:50 PM PDT by Uncle Miltie ("Avoid novelties, for every novelty is an innovation, and every innovation is an error. " - Mohammed)
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To: paulcox1978
Just a matter of being here for a long time and seeing the warning signs of troll such as catch phrases and a short timer.

Such as... I voted for Bush in 2000, before he abandoned all truly conservative principles (free trade, fiscal responsibility, honesty, etc.) and turned his administration over to the religious extremists for whom somehow denying rights to gay people

53 posted on 08/31/2005 1:43:22 PM PDT by 11Bush (No outstanding felonies, but my life has been one long misdemeanor.)
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To: kddid
If taxes are so good for the economy, why don't we just institute a 100% tax on income and a 100% tax on all sales?

We'll all be millionaires then.

54 posted on 08/31/2005 1:44:39 PM PDT by E. Pluribus Unum (Islam Factoid:After forcing young girls to watch his men execute their fathers, Muhammad raped them.)
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To: Brad Cloven
Short list of facts: There are 42 gallons in a barrel. 42 times the current price of LOW OCTANE gasoline(say $2.70/gal = $113.40. Subtract $0.50/barrel for processing (this is an inflated cost) and $15.00/barrel for tax and you have $97.90 profit. And yes, I do know that 100% of a barrel of crude is not refinable to gasoline however diesel is priced at the same cost as low octane gasoline, as are the residual products. This is a complex issue and many factors come into play. The prices bandied about by the press are the futures contract prices and in no way express the true cost of a barrel of crude to a refinery. None the less a %140 profit is nothing to sneeze at. This is a free market issue and sooner or later the market will correct for the painful prices we are paying. This is one of the reasons for the oil field crisis of the mid eighties.

I am for free markets but like to see less interference from gubment. It just makes the corrections larger and slower.

I do hope the energy companies have heard of the golden goose rule. He gets pissed when choked.

55 posted on 08/31/2005 1:51:41 PM PDT by River_Wrangler (You can't be lost if you don't care where you're at !)
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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.

Surely you jest. Current fuel prices are not the result of Middle Eastern oil supplies nearly so much as they are the result of the shortage of refining capacity in the USA. We have about 50% of the peak US refinery count still running, thanks to oppressive environmental regulations and legal hurdles. The game we're playing isn't the Saudi game, it's the American environmentalist game.

Higher taxes are simply higher taxes. They are funneled into yet another wasteful bureaucracy or pork barrel project. Bad economics and bad policy.

56 posted on 08/31/2005 2:12:08 PM PDT by TChris ("The central issue is America's credibility and will to prevail" - Goh Chok Tong)
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To: TChris
Current fuel prices are not the result of Middle Eastern oil supplies nearly so much as they are the result of the shortage of refining capacity in the USA. Nonsense. Current fuel prices have to do squarely with increased worldwide demand, most notably from China.
57 posted on 08/31/2005 2:30:41 PM PDT by paulcox1978
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To: paulcox1978
Nonsense.

First, the US only buys about 10% of its crude from the ME, the balance comes from Mexico, Venezuela, Russia, etc.. But all the crude in the world does no good when you can't refine it. China's demand has not increased dramatically in the last year or two, and world supply levels haven't changed that much either. How do you account for fuel price increases of %60 or more when the supply/demand for crude has only changed in the single digits?

58 posted on 08/31/2005 3:00:57 PM PDT by TChris ("The central issue is America's credibility and will to prevail" - Goh Chok Tong)
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To: Grampa Dave; 11Bush
Judad Priest! Look at that reply #43 right after yours!!!

11Bush done caught him a troll!!! Help him ZAP it!!!

59 posted on 08/31/2005 3:08:06 PM PDT by SierraWasp (Iraq! Our exit strategy should be... VICTORY!!! America IS to die for, Cindy Sheehan!!!)
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To: kddid

the EU already taxes gas $3 plus and the only signal it sends is the $pend signal to bureaucrats.


60 posted on 08/31/2005 3:34:57 PM PDT by rottweiller_inc (Hillary isn't the smartest woman in the world; She's the village idiot.)
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