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To: N. Theknow

This is really to all:

If they cut taxes on gas, the surge in demand will only bring up the price that much more.

Simple economics.


23 posted on 04/27/2006 6:57:51 AM PDT by HOTTIEBOY (AIXELSYD TAEB I)
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To: HOTTIEBOY

Thank you for pointing this out!

The only way to cut the price is to cut back demand. The only way to cut back demand is to change our consumption behavior. Of course, then gas would be cheap again. There's a point where a permanent incentive needs to be in place so that even when oil is $20 a barrel, we're not just setting ourselves up for skyrocketing prices by increasing consumption dramatically.

Tax it even more and return the extra money to all taxpayers evenly, I say. Then those who figure out how to conserve get rewarded.

At $3 per gallon, our demand is still increasing. If you cut out taxes and make it $2.50 per gallon, there's less of an incentive to conserve, and we'll be right back at $3 per gallon before you know it...


46 posted on 04/27/2006 7:23:27 AM PDT by eraser2005
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