Time to raise a tax

Thanks to plunging recessionary demand gas prices head under $3 a gallon -- bring back our SUVs and forget all that talk about alternative energy sources. In fact, given what happened almost 30 years ago, if energy prices were to keep going down, fervor could quickly abate for conservation and driving less.

Actually, now is the time to raise the federal gas tax 25 cents a gallon. Raise taxes! How outrageous when everyone has been wracked by the financial meltdown. Will it happen? Very unlikely given the political wave of bailouts, rescues, and tax givebacks pushing up our national debt to increasingly stratospheric levels.

But raising the gas tax would help on three essential fronts, providing short and long-term solutions to problems facing the country: (1) raise money to create jobs and repair our aging transport systems, (2) build new 21st century infrastructure that is necessary for keeping the nation competitive, and (3) restrain notions that we can slip back and do nothing about our energy dependency.

Just this morning New York State reported suspending $250 million in sorely needed road repairs, because the funding from tolls and taxes isn't available. Other states face the same conundrum and will initiate similar cutbacks. That amounts to tens of thousands of sidelined jobs rippling through an economy torpedoed by steadily rising unemployment.

As noted in this space, the country is smoking something if we think we can get away without rethinking and rebuilding our roads, rails and mass transit and that requires massive funding infusions. At some point, people will have to pay through a combination of higher taxes and user fees. And the sooner we start the better to reduce congestion, pollution, and the chance for catastrophic failures.

Over the long-term, energy prices can be expected to rise steadily, despite the current nosedive. When the world's economy gets back on track... eventually, demand will push prices back up. Our new infrastructure needs to be designed to help us use less energy and get around more quickly and efficiently. We cannot get trapped in any short-term complacency that we can avoid making adjustments in how and where we live and work.

The federal gas tax -- a measly 18 cents a gallon -- hasn't been raised since the early 1990s. Now the Highway Trust Fund which pays for road and mass transit projects approaches insolvency. States layoff construction workers and set aside projects and we all hit more potholes... literally.

If gas prices drop by about $1 a gallon, it's a propitious time to raise a tax that hasn't been touched for years and avoid the potential for deleterious results if we do nothing. Yes, it's an outrageous notion, but a necessary step to setting the country in the right direction.

Comments

[TG]

Absolutely - I couldn't agree more. Oil/Gas is not appropriately priced for it's costs. It's amazing how much energy this country wastes because it's too cheap.

"Drill, baby, drill." is a sophmoric and unspohisticated response to the issue. Reducing our use of energy is something that can happen more quickly, reduces the demand (and corresponding price), is good for the environment and stops sending money to terrorist-harboring nations. Oh, and it allows us to develop a new industry that we can export around the world.

The better solution is obvious.

Ultimately, making choices to reduce is best done with economic and not just feel-good incentives.

[Al Gore]

Bottoms up Jon! Isn't the punch great!? Have I told you how Trendy you look lately? You've really been great....one of my best proteges! The scare tactics for weeks, then a little positive reinforcement to bring back your audience, and then BOOM....more liberal propaganda. Good work.
-Al Gore

[Read My Lips....]

Yeah, that's great advise. Like a nickel of that tax, every cent of which would be passed to consumers, would ever make it to infrastructure. Why not just call it an infrastructure tax and call it a day? Oh, that's right. This way we can blame it on "big oil".

[Laura Cartledge]

Raise the gas tax to 25 cents you say! The oil companies have made more money than ever in the last couple of years with their price gauging. I really don't feel for them! They have made billions and now you want to milk and at the expense of the consumers with your theory! I say not!!!

This country is in a mess because of several reasons:
1) Companies being bailed out by the government. EX: I just read the other day how AIG's exec's after receiving the outrageous amount of money took a wonderful vacation, may I say in the amount of $440,000 at the St. Regis with spas, etc. at the taxpayers expense. Why aren't these execs going to jail for the mess up at AIG? To cause such a financial institution to almost go under is a real shame. Lets just slap their hand so more damage is done and other companies follow suit! Where is the responsibility for their actions in this. Their pros with their degrees, knowledge, etc. or are they con artist.
2) Nine banks are being considered for bailout per GlobeSt.com: Citigroup, Goldman Sachs Wells Fargo, JPMorgan Chase, Bank of America, Merrill Lynch, Morgan Stanley, State Street and Bank of New York Mellon Corp. Chase is one of the richest banks around and the government at the consumers expense is going to bail them out! Hey, while we are at it bail me out of my debts since it's so easy for big corps. Mine in comparison is minute!
3) The foreclosures in this country of course is another problem with bailout. Another area were people don't take responsibility for their actions. Part of it because of scammers, and bad mortgage loans. The other part because many buyers went in with their eyes opened and their ears closed to what it would cost later - months to 2 years later of double payments because of the low interest rates up front and killer interest rates later in the loan.
There are probably more scenarios but I will spare you! The whole thing is ludicrous! Thanks! L...

[Russell]

This is absolutely absurd! Way to kick the American people while they are down Jon!!

[Earmark]

The exorbitant prices for a barrel of oil ($147) which drove up the price of a gallon of gasoline was not caused by high consumer demand. It was caused by oil futures speculators who were allowed to drive up the price of oil because of a lack of regulation. Falling prices are a natural correction to the speculation bubble burst. Demand has dropped some, but the price of a barrel (and price of a gallon of gas) should be much lower than it is.

What's needed are regulations to prevent oil speculation. Gasoline price controls should also be placed on the oil companies. If public utilities commissions can control the price of electricity and natural gas, the government can also control the price of gasoline which would prevent gauging at the pump. You also wouldn't have those digusting oil company profits at the expense of struggling consumers. We should also eliminate those wonderful tax breaks that Bush gave the oil companies. Once the government has reined in the gauging by the oil companies and taken back their tax breaks, Mr. Miller, you can have your gas tax and not many would complain...except the oil companies.

[Jon Walters]

If by "raise a tax" you mean "lower a tax", then yes, I agree.