Gas Taxes

[jake75]

Interesting article in today's WStJ - Page C-1. While the politicans are trying to buy our votes by promising a cut in the gas tax, this says what is needed to help fix the energy crisis is an increase.Average gas taxes as of March 2008Germany 5.16U.K. 5.02France 4.83Japan 2.29Canada 1.19U.S. 0.40Revenues might be used to lower other taxes such as the payroll tax. This was basically Clinton's idea for a 50 cent tax many years ago.Another idea would be to use it to develop the infrastructure for an efficient rail transportation system.

[KNINE]

You don't seriously think that the gov't will cut other taxes if they raise the gas tax, do you?

[jake75]

IF the purpose is to influence behavior and not raise money then the added revenue from the additonal gas tax would be given back somewhere else. My recollection of Clinton's idea was to raise the gas tax by 50 cents and then give every taxpayer a credit on their tax return - something like the stimulus payments. But that was back when we were only 3 trillion in debt - not the ten trillion of today.

[jake75]

Another article in today's WStJ had these March 08 gas prices per gal.China $2.82US $3.45Brazil $5.94UK $8.38Norway $8.83Another article pointed out that the prices of other sources of energy such as coal and natural gas are also up dramtically. The cost to air condition our homes this summer and heat our homes next winter will likely be up substantially.Those with older gas furnaces that are about 60% efficient would be wise to replace them with one of the newer 90%+ efficient models. The annual return on investing in a 90%+ furnace will likely be 20-25% via savings on natural gas any place North of the Mason-Dixon line. It won't be long before geo-thermal systems will be a good investment.

[engineertwin2]

I"m personally not in favor of a gas tax holiday that both Clinton and McCain support.I think it may temporarily "relieve" the pain at the pump, but in the long run, you do more harm than good. Taxes on fuel pay for roadways and repairs This is great because big heavy gas guzzlers cause more roadway damage than smaller, lighter, fuel sippers.In the end, if the price of gas goes down $0.40 tomorrow, we are happy, but what happens beginning of September when they skyrocket $0.40 per gallon overnight?

[tnpartsguy]

Quote, originally posted by engineertwin2 »I"m personally not in favor of a gas tax holiday that both Clinton and McCain support.I think it may temporarily "relieve" the pain at the pump, but in the long run, you do more harm than good. Taxes on fuel pay for roadways and repairs This is great because big heavy gas guzzlers cause more roadway damage than smaller, lighter, fuel sippers.In the end, if the price of gas goes down $0.40 tomorrow, we are happy, but what happens beginning of September when they skyrocket $0.40 per gallon overnight?Does us Tennesseans no go if they do dump the Federal Gas tax. At the end of that month, the state of TN will raise their gas tax to continue collecting what they won't be getting from the Feds. So we'd only get relief for 3 weeks tops.

[zionzr2]

There are 2 simple factors that need are not in play properly here Supply and Demand.A Gas Tax Holiday does nothing to increase supply and will only serve to increase demand. (From Simply economics we learn that when demand goes up so does price)In The US Demand has been falling (However world demand is skyrocketing).In-order to lower cost one needs to deal with the other side of the equation supply. This country needs to increase it own supply to offset demand. We do need to find other soultions to the oil dependency as well which is occuring. The govenment needs to move out of the way and let the market work. Having the government say we have to make ethanol from corn drives up the cost of corn. So farmers make money from growing corn for gas and not grains for food. Now not only is the cost of food going up because it costs more to get the food to the store it cost more for the food itself beacuse there is a lower supply of food for food. A Dubble Whammy!! This frustrates me so much because it is VERY Simple Economics, and the Government it messing up a simple concept!! I'll now step down from the soap box!

[Atomic]

Quote, originally posted by jake75 »not the ten trillion of today.Just for a reference as to how much ten trillion is:1 million seconds is about 11 1/2 days.1 billion seconds is about 31 3/4 years.1 trillion seconds is about 31,700 years.10 trillion is then 317,000 years.yikes.

[KNINE]

Quote, originally posted by zionzr2 »There are 2 simple factors that need are not in play properly here Supply and Demand.A Gas Tax Holiday does nothing to increase supply and will only serve to increase demand. (From Simply economics we learn that when demand goes up so does price)In The US Demand has been falling (However world demand is skyrocketing).In-order to lower cost one needs to deal with the other side of the equation supply. This country needs to increase it own supply to offset demand. We do need to find other soultions to the oil dependency as well which is occuring. The govenment needs to move out of the way and let the market work. Having the government say we have to make ethanol from corn drives up the cost of corn. So farmers make money from growing corn for gas and not grains for food. Now not only is the cost of food going up because it costs more to get the food to the store it cost more for the food itself beacuse there is a lower supply of food for food. A Dubble Whammy!! This frustrates me so much because it is VERY Simple Economics, and the Government it messing up a simple concept!! I'll now step down from the soap box!Your soap box makes more sense than the gas tax holiday. Lets not forget that oil is traded in U.S. dollars, and the dollar is weak right now. It would help if The Fed would stop cutting interst rates. It would help if the gov would keep its nose out of most of the things it sticks it in to.

[redlava]

It always makes me laugh when so many people think that the oil companies are price gouging. People only see the 9 billion dollars in profits and don't realize that the oil companies profit margin is right in line with other supply markets like construction materials, medical supplies, and food, about 20%. The only reason that the profits are so huge is that the volume of fuel that people in this country buy is so huge. Oil companies are not price gouging, most gas stations are not price gouging. We the consumer alone dictate how much we pay at the pump.Look at 9/11, everybody freaked out and topped off their tanks that day and what happened? Prices shot up almost overnight. Not because there was any less supply, but because demand went up. Stop blaming the oil companies America!! Sure they aren't exactly the most respectable lot, and they need to invest more in alternative fuel research, mostly for their own future wellbeing. The government is mostly to blame for limiting oil exploration, the lack of new refineries, and not recognizing the possible future problems after the embargo in the 70's. We've had the technology for electric cars for 20 years, why are they just now becoming viable?