Stories tagged with "gas tax"

Advice To Pres. Obama (#3): Change you must

Dear President Elect Obama,

The chart shows US crude oil production (blue) and consumption (red) and shows that the USA has been living well beyond its means for over 40 years. This lies at the heart of current global problems creating economic, social, political and environmental imbalance on an unprecedented scale.


Do you agree that President Obama should significantly raise US gasoline taxes during his term in office?

Yes, I agree.
82% (2631 votes)
No, I do not agree.
18% (567 votes)
Total votes: 3198

Thoughts on the New Energy Team

In case you are just venturing out of your cave for the first time in a week, you are probably aware that President-elect Obama has announced his new energy team:

Obama names energy team

The team includes Nobel Prize winning physicist Steven Chu as Secretary of Energy, former EPA head Carol Browner to fill the newly-created job of Energy Czar, and Lisa Jackson to head the EPA. The focus of this essay will be on Dr. Chu, but I will comment briefly on the others.

Lisa Jackson is trained as a chemical engineer (as was the outgoing Secretary of Energy Samuel Bodman). It should go without saying that I like to see technical people in roles like this, where understanding science and data are both critical. Carol Browner, while not trained as a technical person, has a lot of administrative experience within the EPA. Incidentally, I once met Mrs. Browner, as she was the person who presented my research group with the 1996 Green Chemistry Challenge Award at the National Academy of Sciences for our work on biomass conversion to fuels.

The Case for Higher Gas Taxes (and Lower Income Taxes)

Taxes and Choice

Whenever I mention the idea of increasing gas taxes, some inevitably hear only half the message: A tax increase. They don't want to know about any tradeoffs I propose, or if there might be a long-term benefit. They just know one thing: Tax increases are bad.

But I don't want to increase taxes. I don’t like to pay taxes any more than anyone else does. I don't feel like a patriot when I write a check to the IRS. No, what I am going to propose would give you more choice in the taxes you pay. I want to change the way you pay taxes in a way that will benefit future generations and reduce our dependence on foreign oil.

Don’t get me wrong. I understand the benefit of taxes. I recognize that a good bit of my tax dollars are well spent. I am happy to pay taxes that help improve our overall quality of life, or that secure a better future for our children. I just wish I had more control over the taxes I pay.

One big sigh... (Sarkozy on lowering gas taxes)

Sarkozy: "La demande en produits pétroliers est de plus en plus forte et l'offre n'augmente pas ou très peu"

Sarkozy: "Demand for oil is stronger and stronger and supply is increasing very little, if at all"

When I heard him say this on the radio this morning, and continue by adding that we had to be aware that prices would continue to remain high, I was pleasantly surprised. But that did not last.

[UPDATE, Chris Vernon] Here's Gordon Brown's contribution to the debate.

Countdown to $200 oil (3) - no gas tax needed...erm, right...

This story is part of my new Countdown to $200 oil series, which is the successor of my earlier, and now terminated by reality, Countdown to $100 Oil series.

As in previous years, I got my ass whipped in my latest attempt to suggest on Daily Kos that gas taxes should be increased, despite the fact that the place is completly dominated by Obama fans and Obama's solid stance against the gas-tax holiday.. Some commenters kindly called me a "rich elitist f*ck from Europe" (guilty on all counts, of course) for wanting to bankrupt poor Americans who cannot do without gasoline, preferably cheap, and are already struggling mightily.....

McCain wants a gas tax "holiday." It's a no-brainer, right?

Atrocious policies but devious politics from McCain:

McCain Proposes Break in Gas Taxes

PITTSBURGH (AP) — John McCain wants the federal government to free people from paying gasoline taxes this summer and ensure that college students can secure loans this fall, a pair of proposals aimed at stemming pain from the country's troubled economy.
(...)
To help people weather the downturn immediately, McCain was calling for Congress to institute a "gas-tax holiday" by suspending the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day. He also renewed his call for the United States to stop adding to the Strategic Petroleum Reserve and thus lessen to some extent the worldwide demand for oil.

Let me make the following bets...(under the fold...)

A Better Gas Tax?

This isn’t an argument about whether or not taxes—particularly energy taxes—are “good” or “bad.” Rather, this essay has a narrow focus: IF we’re going to attempt to reduce gasoline demand through taxation, what is the best way to do it?

Here’s my somewhat counter-intuitive theory: to most effectively reduce long-term gasoline demand, gasoline taxes should increase, not decrease, long-term price volatility.

First, let’s look at European gasoline taxes. In the UK, gasoline tax is .50 GBP per liter plus 17% VAT ($3.75/gallon before VAT, $4.42/gallon with VAT). In Germany it’s .65 Euro per liter plus 19% VAT ($3.80 per gallon before VAT, $4.53/gallon with VAT). Compare that with US taxes, which range from a low of $0.26/gallon (Alaska) to a high of $0.63/gallon (California). The much higher European taxes operate to reduce price volatility because they remain static in the face of changes in the underlying price of gasoline. For example, if taxes effectively double the price of gasoline, then a 10% increase in the pre-tax gasoline price results in only a 5% increase in the after-tax price of gasoline paid by the consumer.

We Won't Stop Global Warming

I made the following comment recently in a discussion on Global Warming:

If you put it to a popular vote, and people learned that GHG emissions could be arrested (hypothetically) if they were willing to pay $7/gallon of gasoline, what percentage would vote for that? My guess is that it would be well less than 20%, implying that GW concerns will give way to economic concerns.

At one time I was really worried about Global Warming. And at the risk of starting a Global Warming debate here (one that I don't wish to participate in), my position is that the scientific consensus backs the hypothesis that human activity is contributing to Global Warming. I am not an atmospheric scientist, so in this case I rely on the scientific consensus of the experts. This is the same standard I apply to other fields in which I lack expertise.

Paying for Post-Peak Oil Mitigation

Apropos of yesterday's gas tax report and discussion, today we bring you Alan Drake's ideas on post-peak mitigation. Alan is an engineer, former accountant, and professional researcher based in New Orleans with best hopes for many. Alan would also like to thank the lovely and talented Wendi Berman for her editing skills and assistance.

Many proponents for public spending on Post-Peak Oil mitigation are attracted to gasoline and diesel taxes or more generic oil and/or carbon taxes. In an era of rapidly increasing oil (and all other energy) prices, passing such taxes will be politically difficult and take precious time.

I would like to propose an alternative tax for Phase I of Peak Oil mitigation that adheres to Sen. Russell Long’s famous dictum “Don’t tax you, don’t tax me, let’s tax that fellow behind the tree!”

World Trade Organization (WTO) rules allow for a specific exemption that will allow the United States of America to impose a non-discriminatory tariff (it applies to all goods and taxable services, with a specific exemption for essential goods) if the funds raised are used to reduce our structural trade deficit, i.e. our oil consumption.

Specifically, the WTO allows nations with a structural balance of trade deficit (which the USA certainly has) to apply a non-discriminatory tariff if the funds from that tariff are used to reduce the structural trade deficit (which reducing oil use certainly would do). A separate section of the WTO treaty allows the importing nation to exempt “essential” goods.

In 2006, the USA imported $1.861 trillion in goods (and exported $1.023 trillion). This allows for significant revenues from a small percent tariff.