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44 comments on Legislative Updates on The Energy Bills: Today is the Day, Make Your Voice Heard
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44 comments on Legislative Updates on The Energy Bills: Today is the Day, Make Your Voice Heard
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GAIA Host Collective
We may curse higher fuel taxes here in Europe but over the last 20 years they have resulted in
1. Redistribution of this tax wealth amongst the European community rather than it all going overseas to the Middle East or other exporters.
2. Europeans use roughly 50% of the energy of Americans; admittedly this is not all due to the higher fuel costs but it has modified our behaviour and led to efficiencies.
3. A cushion against raw oil-price rises
New taxation is likely to be unpopular so its introduction would have to be carefully framed in the context of the longer term benefits. It could also be framed in shorter term immediate improvement contexts to transport infrastructure such as freeways, etc. The alternative would seem to be growing trade imbalances and eventual demand destruction by price.
A tax on gasoline would be the most sensible approach, but politically it has no chance. I wonder if there might be more support for getting rid of the oil industry subsidies. This could be sold by pointing out that the resulting rise in gas prices would be canceled by a decrease in taxes. In fact this gives people more control over their money, because they can conserve gasoline and save money more easily than they can reduce their taxes.