MSM covers idea of increasing the gas tax (albeit briefly)
This entry was posted on 5/23/2007 10:47 PM and is filed under uncategorized.
It's a start.
The main stream media (MSM) ran an article this past Monday about increasing gas taxes "A big fat, European gas tax." Some highlights:
- suggests wholesale gas prices could be lowered by "crimping" demand; - recognizes that a gas tax would often be particularly tough on those with lower incomes (and that this wold need to be addressed); - spells out the $1 - $2 per gallon tax Europeans pay vs. the $.18 federal tax plus state taxes that are "generally lower than $.40 per gallon." - a skeptic of the idea from MIT says that the combination of a gas tax causing lower wholesale prices and extra dollars going from oil companies to the government as a result is "absolutely fantastic thinking."
With a tax shift (income tax rates down while taxes on non-renewable energy sources go up): energy demand will decrease leading to lower wholesale prices. Lower than what? Lower than they would be at higher consumption levels. Could OPEC cut production and raise prices? Sure - THEY CAN DO THAT NOW. And, the higher our consumption, the higher our vulnerability. With our current, increasing consumption levels, WE HAVE NO CONTROL. (Control is a good thing to have over a key component in one's economy - that's why (unfortunately) we're at war.)
We need to solve four big problems. The path to action is through wallets/pocketbooks. Shift taxes from income to energy; make non-renewable energy more expensive to reduce consumption and stimulate the alternative energy industry.