Cutting fuel taxes is not an option
Anyone that thinks a solution to the rising cost of gasoline is to cut the fuel tax is misguided. The money received by the federal government is spent on highways, mass transit and environmental projects. Driving is not a right, it's a privilege. Citizens should expect to pay, through taxes, for the infrastructure to support this privilege. If you don't want to pay gas taxes; walk or ride a bike. Americans have been spoiled by some of the lowest pump prices of any western country and now are being punished for driving SUVs that they can't afford to fill. The upward trend in oil prices will have a positive impact if it causes Americans to alter their lifestyles to limit their dependence on a finite natural resource. I'm willing to suffer a short term economic downturn for a long term environmental gain.
posted by mochi at 5:59 PM
11 Comments:
Well said Mochi. I couldn't agree more.
What is a fair tax on a commodity, Mochi? In some states the tax per gallon of gas is as high as 40%.
-Jack
Since that money is being used for infrastructure to support transport I'm not opposed to the tax being 100%.
I know you addressed that to Mochi but I'll throw my unsolicited two cents in there...
When the commodity is used to fuel something that demands such costly infrastructure, I think 40% is a reasonable tax. The concept is similar to the tobacco taxes. If people want to burden the insurance companies and health care system with their self induced cancer that's fine, but they'll have to pay for it.
Hey, Mochi and I chimed in at the same time. Isn't that cute?
I don't know where these figures of state taxes of 40% are coming from, Jack. Link to a source, please?
Here's the source I have. The numbers I see here imply maximums of about 10%, ranging significantly downward from there.
If you want to add the Federal tax of 18.3 cents per gallon to these state figures, you still end up WAY short of 40%, by my count.
http://www.taxpolicycenter.org/TaxFacts/TFDB/TFTemplate.cfm?Docid=434&Topic2id=90
LG,
Think about it.
In Pennsylvania 35.1 cpg plus 18.3 cpg--not adjusting for this years almost 60% hike in price, tax program and protection subsidies paid for by the taxpayer.
(40% is a lowball)
Actually if one considers how much a gallon of gas costs the average consumer in form of taxation we could be paying anywhere from $5.60 to $15.41 per gallon.
Chew on this one for a while:)
You gotta' think, Man!
-Jack
WSC,
Here in SC we saw gas prices jump from $2.29 to $3.25 in literally hours. As I said on my blog, I saw no fuel delivery trucks arriving with more expensive gas, and at the time there was no real change in demand and supply. The same 'ol fuel was in the underground tanks that were in there the night before. I'm all for capitalism as there is always a check and balance to it. Increase the price to much, demand decreases. We'll see how high it has to go before demand decreases...
-Jack
Your right Jack.
I saw the same today as i arrived at my gas station and saw, much to my dismay, a jump of .50/gallon across the board. The damn hurricane hasn't even reached us yet as a low pressure system and now this. Demand is one thing. But right now you have three major car manufacturers coming out with a new line of SUV's that unfortunately take at least 24 months in development and marketing. They simply can't stop the assembly line because it is physically impossible once it starts roling. Contracts have been signed months ago. Thousands of jobs are at stake and the stability of the economy. This is a disaster unfolding. I blame one man. Period.
WSC,
I'm not sure your level of knowledge in political science--you may know a great deal, but I have to point out that the President does not have the power he is credited with by the left. For example, the effects of the fiscal policy of a President are not really felt until four-five years after their implementation. And, if truth be known, Bush's fiscal policy was little different than Clinton's. Most people don't know or understand this. Federal budgets are not formulated by a President, but by Congress. Changes in law and regulation, are not the President's jurisdiction either, so to credit him with so much responsibility, is a little extreme. What we are reaping was excess during the 80's, poor planning and management in the 90's, and global influences in the 00's. Politicians who came to power during the rise in economic prosperity (which was solely brought about by the computer industry boom) formulated budgets and spending habits commiserate with the high influx of revenues.
Politicians play upon the ignorance of the masses to advance their own agenda's, and we let them. For example, one of the popular statements made when Bush took office was about "the surplus being gone!". WSC, there was no surplus, has never been one since the creation of the Federal Reserve. Back during that time, having taught economics, and being an accountant I wrote the following article to help people understand that the political rhetoric was deceptive and not to be trusted:
Page Title
I understand people's desire to put a face on the ills of the world, but to do so in this case may be a little premature.
-Jack
Jack, you are a good man and too bad there are not more like you who refuse to be complacent because its not them who is being directly affected. Good luck and be safe.
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