The Oil Drum | Let's Talk Gas Tax (Poll)

297 comments on Let's Talk Gas Tax (Poll)

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Robert Rapier on September 18, 2006 - 1:25pm

If you provide credits to offset the tax, then you severly decrease the revenues for your project.

The objective is not to generate (net) revenue. I agree that going that route would kill any chance of success. The objective is merely to raise the price of gas, raising the incentive for conservation and alternatives - without punishing consumers. It has to be more or less a "free lunch" in order to sell.

We could even sell it as a "punish Big Oil". Because conservation will cause less gasoline to be sold, it will have a negative impact on revenues. So, I might have to fight Big Oil on this one.

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Leanan on September 18, 2006 - 1:30pm

If it has the effect you hope, it will have to increase it each year if it's to remain revenue-neutral.

Personally, a gas tax refunded via a cut in payroll taxes would be a great deal for me. I don't drive much, since I live walking distance from my office.

But if everyone does what I'm doing, the government will be losing money, unless the gas tax increases or the rebate decreases.

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Nick on September 18, 2006 - 3:18pm

You probably would need to pay attention to careful matching of revenues to credits.

Interesting, there are two potential stimuli to the economy: revenue would decline, increasing the deficit, and so would the transfer to oil states: the "oil tax" effect.

In theory you'd need to reduce the credit faster than revenues declined, to keep the economy on an even keel.

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jim burke on September 18, 2006 - 4:47pm

RR: I think it is a grand idea, but as I said to WesTexas some time ago, I think it a political dead end.

There are enormous constituencies for low gas prices, and very few for raising gas prices. Any politician who voted to raise the prices of gas would be voted out post haste.

I don't believe that our present Congress would pass such a bill, and I'm positive Bush would never sign it into law. In addition, I find it hard to believe that ANY future Congress would vote to raise these taxes. And what future president would sign it into law?

Better to let progressive shortages do the price lifting for us. Even if the price is coming down now, nothing short of a major recession will protect prices from going up next year. And the year afterwards, etc.

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TechGuy on September 19, 2006 - 11:45am

>The objective is merely to raise the price of gas, raising the incentive for conservation and alternatives - without punishing consumers.

Another words, you want a solution where everyone can continue to chow down two large pizzas and a large cake without gaining a single ounce. Do you remember the phrase "No Pain, No Gain"?

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Engineer-Poet on September 22, 2006 - 7:26am

What makes you think the program would have no pain? Every gallon would come with another dose of financial pain; the fact that the average person would get more money back than their extra fuel taxes wouldn't change that. Bulk purchasing power and marginal cost are two different things, and incentives are set at the margin.

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TechGuy on September 22, 2006 - 12:34pm

>What makes you think the program would have no pain? Every gallon would come with another dose of financial pain

Because Roberts plan is to refund tax money back. Therefore consumers aren't truely burdened by the tax.

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Engineer-Poet on September 22, 2006 - 6:56pm

You just moved the goal posts; you changed "incentive" to "burden". (You also fail to note that the effect on profligate users probably would be a burden.)

Most people aren't burdened by the cost of home lighting, but they still have a strong incentive to buy CF lamps and capture the savings. Same thing with a gas tax and per-earner (i.e. not influenced by gas consumption) refund.

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297 comments on Let's Talk Gas Tax (Poll)

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