The Oil Drum

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

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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.