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MidEast Democracy Time To Raise Gas Taxes $1 Per Gallon

MoltenRock III

MoltenRock III

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Fair Use Excerpt NYT said:
What’s unfolding in the Arab world today is the mother of all wake-up calls. And what the voice on the other end of the line is telling us is clear as a bell:

“America, you have built your house at the foot of a volcano. That volcano is now spewing lava from different cracks and is rumbling like it’s going to blow. Move your house!” In this case, “move your house” means “end your addiction to oil.”
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http://www.nytimes.com/2011/02/23/opinion/23friedman.html?_r=1&ref=global

In this Op/Ed Thomas Freidman goes on to outline why America needs to raise the gasoline tax by $ .05 per gallon per month starting January 2012 until it's raised at the federal level by $1.00 per gallon. I fully support this and agree.

I think the mid-East's push towards democracy is fantastic. However, democracy is rarely to never, neat, predictable, or easy, hence why the USA needs to get off the oil teat of the middle east.

As Mr. Friedman said, "With one little gasoline tax, we can make ourselves more economically and strategically secure, help sell more Chevy Volts and free ourselves to openly push for democratic values in the Middle East without worrying anymore that it will harm our oil interests. Yes, it will mean higher gas prices, but prices are going up anyway, folks. Let’s capture some it for ourselves."

Pretty simple really.
 
oil hit the 100 dollar per barrel mark again recently. Its going to go through the roof, but it will show as a net gain in economic activity to the CBO.
 
I think if raised in increments of 5 cents, like proposed, would be doable. But imagine paying $1 now ... yikes. So many individuals definitely can not afford to spare $1,500, $2,000 or more of their income to go towards this at the moment.
 
I rented a Mercedes A-Series and drove 2000 miles through Germany, France, the Benelux, and Netherlands. I paid equivalent of $6 a gallon for diesel but its turbo engine let me cruise at 100 mph on the Autobahns and I had room yet to go to the floor. Best of all got mpg in the 45 mile range. Gasoline was more expensive, nearly $7. But you don't seen any big cars, SUV's. Saw one big dualie pickup truck near a US military base being driven by an American who enjoyed his loud mufflers and "peeling out".

VW now has the TDI turbo diesel available here. Mercedes won't export the A and B Series to the USA, maybe to avoid having cheaper cars in our market. My German cousin told me that Americans are too impressed with Mercedes saying, "Over here we call them taxis".

I was most impressed with the very smooth highways all over Western Europe (also took a 3000 bus tour through the old Soviet bloc nations, which also had better roads, in many cases, than now in the USA). The Millau Bridge in Southern France is both a work of art and an engineering feat. Part of the EU gas taxes go towards mass transit, something sorely needed here.
 
The price of gas won't jump a dollar overnight. They would have to explain that. There is an entire division in most state gov'ts that is in charge of making sure consumers are not ripped off by price gouging and incorrect prices. It's called the dep't of weights and measures in Massachusetts. I don't know what it's called anywhere else, but the next time you go to the pump, look for a state inspection sticker. It will tell you who is in charge of it in your state.

They inspect pumps to make sure theys dispense as the readout indicates, and that the octane is as posted. They also go to retail stores and make sure that the computerized ringout is accurate to price marked on the shelf or item.

Now when you are dealing with oil versus gas, you have to show an increase as it reflects on your futures purchases, I believe, to set prices. In other words, you have to show the average of the value of your entire body of oil or gas, how much each batch you bought cost as a manufacturer, and I believe you are required to stay within the 3 to 5 percent range in post production profit.

anyone who balks at that should remember even with that onus, they are all the biggest comanies of the globe, breaking their earning records with every new quarter.

so a big jump NOW in oil will reflect slowly in gas prices as they continue to buy oil, and the average spent rises versus volume.

In other words... as the cheaper oil slowly gets worked out of the refineries systems, the price of gas will go up slowly,with no eratic tendencies.
 
A forecast in today's Houston Chronicle has experts here saying it won't get as high as it did in the summer of 2008. There is more oil in reserve at the U.S. refineries and there is more refinery capacity than we had in 2008. We don't get any oil from Libya but now we may have to compete with Europe for Saudi oil. The speculators are worrying about there being a political disruption in Saudi which is leading to the higher prices. Anyway, the oil being pumped now won't be in gas stations for a few months, but retail prices ALWAYS go up instantly with any excuse to raise prices on the consumers.
 
Raising the tax on gas like that with our economy as poor as it is would be devasting to the whole nation. This dependancy on foreign oil has always been a death trap. We are long overdue exploring our own oil possiblities here. Green energy is good, but way too expensive, particularly in these days, and should only be sought with use of our own oil. This nation, or any nation, is not going to change it's lifestyle overnight because the people simply can not afford to do that.

Sure, the rich can go out and buy a new car or seek other types of engery consumption today, but reality is we are a world that uses gasoline, and to believe we can change by tomorrow morning, is not facing our own reality.

A tax increase like, that coupled with the inevitable cost at the pump, would destroy the lives of Americans, except those who can afford to that. The number who can afford that is so small that this proposition is totally ridiculous.
 
grantt said:
Raising the tax on gas like that with our economy as poor as it is would be devasting to the whole nation. This dependancy on foreign oil has always been a death trap. We are long overdue exploring our own oil possiblities here. Green energy is good, but way too expensive, particularly in these days, and should only be sought with use of our own oil. This nation, or any nation, is not going to change it's lifestyle overnight because the people simply can not afford to do that.
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The only reason green energy is "too expensive" is because of the hundreds and hundreds of billions of $$$ per annum the government subsidies oil. Not to mention that billions upon billions spent every year to keep the 5th Fleet of the entire USA in the Persian Gulf to keep the free flow of oil.

But yes more oil production is needed here in the USA, as well as nuclear, as well as green energy, as well as conservation, of said energies & resources.
 
BostonPirate said:
America hasnt built a refinery since 1955. THAT is why we hae issues when the oil price goes up. Our production ability is stagnant, yet every year, more and more cars spill out on the roads of america as our population increases.
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True. We need to build more refineries, but environmentalists won't let us. They say it takes years to build, yet we sit on our hands and do nothing.

We need to move in all forms of energy....all forms. A nation as large as ours shoud never be at the mercy of any other.
 
thats the big question...

Do we build another refinery or do we lower the cost by building and using hybrid cars which would reduce the cost due to less demand.

Obama and teh US auto industry are betting its more lucrative and job creating to build cars that use alternative fuels.

he is right.

The jobs that a refinery would create are not substantial, while creating a new manufacturing sector WILL crreate jobs.
 
BostonPirate said:
In other words... as the cheaper oil slowly gets worked out of the refineries systems, the price of gas will go up slowly,with no eratic tendencies.
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Thats not entirely true...

Pump prices are based on speculation as to what it will cost to REPLACE their inventory -- NOT on what it cost the fueling stations to fill their tanks...
 
As I recall, the approval process for a new refinery got going under Bush, and a new one was approved. But it's still got red tape chest-deep to wade through; I don't even know if ground has been broken yet.

If we could burn red tape, we'd have an energy abundance.


But there is "anything to oil" technology, now at a definite profitable level due to the price of oil. That would give us oil we don't have to import, provide lots of jobs, reduce our flow to landfills....


At the moment, I think an increase in the federal gas tax, while perhaps an nice option to those with more money than nine out of ten other people, would be like using bleeding to treat an infectious disease: sometimes, if you get lucky, the patient doesn't die from the treatment.
 
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