Saturday, May 26, 2007

You're Not Paying Enough For Gas

This article from MSN Money says that you're not paying enough for gas. A responsible government, it turns out, would increase taxes so that a gallon of gas never drops below $4 a gallon. It's not the government's fault though---it's our fault because we can't do anything about our addiction to "gas-hogging SUVs." Even though this is just an opinion piece by who appears to be some kook, I bet we hear more and more about this in the near future.

When talking about energy, Europe should always be our example:
Europe has an average fuel economy for its new-car fleet of more than 40 miles per gallon. The European Union years ago amassed support among members for high taxes on gasoline, which drove a swift migration from big cars to smaller cars and to diesel fuel. The result: less dependency on OPEC and cleaner air in the cities.
The French get 80% of their power from nuclear sources. Does this mean we can build more nuclear reactors? Oh wait, the environmentalists won't like that. Never mind.

Europe also has a larger rail system set up that covers the continent for people who still can't afford or don't want to pay that much for gas. While that might work here in the US for more urban areas, but what about in places like Webster County? Who is going to invest in putting in a rail system linking towns such as Dayton, Harcourt, and Badger to Fort Dodge, and then run the trains?
But consumers won't trade the Ford Expeditions, Toyota Sequoias and Chevy Tahoes that they don't need until gasoline is permanently more than $4 per gallon. The people who really need those vehicles for ranching and boat towing will buy them no matter what.
So, stick the farmer, the person who grows the food that you eat, and now grows the stuff that you mix with your gas, with higher gas taxes? Just because they will buy the big vehicle anyways? These Buisness Week guys need to come spend some time on a farm to see how the whole operation works before saying something like this.

Notice also how they assume what kinds of vehicles we do and do not need. Shouldn't that be a personal choice? Beside, how do they know we don't need Expeditions or Tahoes? What if you have a large family, either numerically or physically, and need the room? This, like the rest of the article, just yells arrogance.
The new tax money could go to tax offsets for lower- and lower-middle-income consumers and to invest in new energy infrastructure in the U.S. That makes sense. This is not an original idea, but the gas tax could be called a "patriot tax" to exempt it from political wrangling.

Oh, so now its a progressive gas tax. Just like income taxes, the filthy rich can afford to pay for gas for the not-so-rich. Actually, it won't only be the filthy rich, it will be the middle income consumers.

I don't like the price of gas, just like everyone else. I'm all for finding alternative fuels, but do people like this really want to solve our fuel problem, or just dictate to everyone how we will get around? Americans were the first in flight. America put man on the moon. Are you telling me that America can't find some alternative source of fuel that doesn't involve us driving small ugly cars? That the only thing America can do is play like Europe and tax the hell out of gas?

One of the major reasons for the increase in gas prices is because we don't have enough fuel refineries. In fact, I've heard that 13% of refined gasoline in the US is imported. Refineries are running at almost 100% capacity full time, and when one goes off line for what ever reason, the effects are felt across the country. Why not just build more refineries, or increase our refinery capacities? The environmentalist won't allow it, and they've been able to get laws and regulations enacted that slows down the process. It takes years of planning, paper work, and dealing with government bureaucracy even before building could begin.

What about all of the different variants of gas that states require? Why not try stream lining this into one or two variants?

Keep your eyes out on this kind of stuff. There are probably very very few politicians, if any, who would openly support increasing gas taxes like this, because it would be politically stupid to do so. This is all about power though, and there are those who will push for it at the first opportunity.
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