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To: JerseyHighlander
You'll love to hear this, Pirro just proposed the suspension of the federal gas tax as part of her platform. She beat Hillary to the punch! LOL, out-hillary hillary indeed.

Until the supply problems are fixed to the point that stations consistently have gas, I don't see how reducing the federal gas tax would help anything. If producers are already producing as much as they can, the consumer price will be set by the quantity of gas produced and the consumer demand curve. The only question is how much of that money will go to suppliers and how much to the government.

Once things have somewhat stabilized to the point that producers could increase quantity to meet the increased consumer demand that would result from a lower price, then reducing the gas tax might have a useful effect on consumer prices. But I don't know that we're there yet.

3,088 posted on 09/05/2005 7:38:11 PM PDT by supercat (Don't fix blame--FIX THE PROBLEM.)
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To: supercat

No, but excellent PR from Piro. I think that woman is much smarter than the MSM is giving her credit...


3,094 posted on 09/05/2005 7:40:18 PM PDT by Arizona Carolyn
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To: supercat

Suspension o the tax would keep the price down and help prevent panic buying.


3,111 posted on 09/05/2005 7:50:57 PM PDT by Roccus (Able Danger? What's an Able Danger?)
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To: supercat

We'll see conflicting interests here, those convinced the additional gas costs will contribute heavily to an immediate economic recession will push hard to remove gas taxes, then some politicians, pundits and wonks will take the European approach of regressive taxation to force rationing of gas purchases at the individuals' level, and then the anti-tax club for growth types will chime in, the Democrats who will demand all taxes increase to help pay for hurricane relief. In other words, the same old, with greater urgency and louder shrieks.


3,176 posted on 09/05/2005 8:34:03 PM PDT by JerseyHighlander
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