Posted on 04/15/2008 4:20:48 PM PDT by 2ndDivisionVet
18 cents does practically nothing to the cost of gas (drops from $3.40 to $3.22-$3.25, big whop, that’s about $2-$3 per tank of gas) and it’s about the only ‘fair’ tax there is. This won’t stimulate anything.
Weak dollar is one factor. However, 70% of the cost of gas is the crude and demand for crude worldwide is very high. And it's gonna get higher.
Increasing demand further by artifically lowering the price for a few months will do what you think?
I favor massive tax cuts on income and capital gains. I am not in favor of idiotic crap like this. Taxes on gas are basically use taxes which is the least odious taxes there are. Absent you owning the roads and letting me drive on them free of charge, I am relatively happy with the current arrangement if the fedguv would use those taxes as they should be used.
If McCain wants to cut taxes he can be my guest. Income, cap gains and death would be a good place to start accompanied by decreases in spending.
I This McCain Derangement Syndrom sure is taking its toll.
Maybe he'll suspend your tolls as well if you take care of the parkway gratis.
Just as an experiment, how about a 50% reduction of all income tax rates for 10 years?
In a monopoly/cartel market such as oil,higher demand does not necessarily mean lower supply. Supply is being met and the increase in demand will be met. If there is any scarcity it's an artifice of OPEC.
Increasing demand further by artifically lowering the price for a few months will do what you think?
Has the huge increase in gas prices 'artificially' lowered demand? No. Then why do you think that lowering the price will increase demand? Oil is inelastic. In addition, the gas tax is the worst type of regressive tax that hits poor and working people hardest. At least the Clinton gas tax, which doubled the amount of tax paid (with no decrease in demand) should be repealed.
It's not a fair tax it's regressive. It causes inflation in food.
It puts unneeded money into an already bloated fedgov and does NOTHING to curb skyrocketing demand in China.
First of all demand in the short term is elastic. Secondly, this “tax cut” is a sham. It puts no significant money in anybody’s pocket. And thirdly, the tax isn’t regressive at all. People with more money burn off more petro. But I gotta tell you, the regressive argument doesn’t get you many points.
Really? So when Clinton doubled the gas tax, demand must have dropped....NOT.
Secondly, this “tax cut” is a sham. It puts no significant money in anybody’s pocket.
Maybe, But it takes money away from the bloated fedgov. Which is good, don't you agree?
And thirdly, the tax isn’t regressive at all. People with more money burn off more petro.
It's the epitome of a regressive tax, people with less money still have to drive the exact same distance to work everyday. Their Demand doesn't fall due to price.
But I gotta tell you, the regressive argument doesn’t get you many points.
Not looking for any.
Decreasing the tax does NOTHING to curb skyrocketing demand in China either.
There are far better things our elected leaders could do to boost the economy OR drop oil prices. The gas tax at this point is almost irrevelent. With RBOB at $3/gallon, add tax and 5-10% profit, and we're looking at $4 gas soon. Taking 18.4 cents off does nothing.
We still are paying it, we haven't cured global warming, and we've got huge deficit. I want a refund.
When gas was .25 cents a gallon, and we still building roads, how did we pay it?
The roads are all built, why do we need such excessive taxes merely to maintain them...if you like 'use tax' then put up tolls.
Actually Clinton raised the gas tax 4.3¢, which was about 30%. I can tell you at this point I can not even feel 4.3¢. Roads are very, very expensive to maintain. I know from personal experience from previously living on a private road. I’m perfectly fine with reducing the gas tax to whatever is required to fix, maintain and build new roads. Tolls are inefficient, cause more gas use, etc etc. We’d be better off cutting capital gains taxes or corporate tax rates than lowering the gas tax or eliminating it for 3 months. It would help boost the dollar for starters which would make gasoline cheaper in and of itself that way.
It would help boost the dollar for starters which would make gasoline cheaper in and of itself that way.
Agree, anything that boosts the dollar will be a great help.
If Bernanke were to announce a 5 year plan to re peg the dollar to gold, just that announcement would send the dollar soaring. Problem solved.
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