Whatever your opinion on the healthcare bill recently passed by Congress and signed by President Obama, the passage of it has at least allowed discussions on other important topics to resurface. Topics like energy reform. Details of the Kerry-Grahm-Lieberman energy reform bill have started leaking out. Among the topics that stuck out: a new gas tax.
The details don’t make clear how much this new gas tax would be, but it would likely be linked to the carbon content of the fuel. A higher gas tax has been bandied about for decades, and has always shot down rather quickly. The Fed’s collect 18.4 cents per gallon, while the average state gas tax is about 27 cents. So 45 cents of every gallon already goes to either the Feds or the state, and while it may sound like a lot, in actuality it is amongst the lowest tax rates on fuel in the world. How much higher should it go?
Let us take a look at Europe, which has some of the highest gas taxes in the world. The United Kingdom, for example, charges the equivalent of $3.49 per gallon just in taxes. So add $3 to whatever you are paying for gas right now, and you can get perhaps an idea of what Europe currently pays. But even that may not be enough.
There have been studies that suggest gas would have to cost more than $7 a gallon for there to be a meaningful reduction in miles traveled and car congestion and thus emissions. That kind of tax would cripple our slowly recovering economy, and I’m sure the Senators realize that. So how do they plan to push through a meaningful gas tax, especially after passing a huge new law that is already raising taxes? And where will all that money go? Are we going to get some awesome new highways and public transportation and other innovations? Are they at least going to fix our ancient, crumbling infrastructure?
I’m opposed to a gas tax… but not to the point where I couldn’t be convinced to be for it. I need more details. How much is the proposed tax? How will electric vehicles and the like pay taxes? Do they get a free pass? How will ethanol, diesel, and other fuels be treated? Where will all that money go? Perhaps most importantly though, will it get America off of its oil addiction?
This is going to happen one day America. I’m hoping I just get one more good summer of “low” gas prices before we go all Europe on our cars.
Source: TreeHugger | Image: mlhradio
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About Christopher DeMorro
I’ll poorly rephrase Hansen and say oil’s too addictive and the world *will* use it all regardless. Coal however can and must be phased-out, so a carbon tax – even if it slightly affects petroleum – must be established that reimburses the takings to people to cover the cost increases in bills (i.e. a fee-and-dividend scheme).
This way a market is created for cleaner energy while the average tax-payer isn’t worse off.
I’ll poorly rephrase Hansen and say oil’s too addictive and the world *will* use it all regardless. Coal however can and must be phased-out, so a carbon tax – even if it slightly affects petroleum – must be established that reimburses the takings to people to cover the cost increases in bills (i.e. a fee-and-dividend scheme).
This way a market is created for cleaner energy while the average tax-payer isn’t worse off.
I am 100% for an increase in gas tax. The US needs to join the rest of teh world and be responsible about the use of earths resources. no where else do families have a baby, and they parents feel compelled to run out and buy a Tahoe or Suburban. Diesel is so much more efficient and should be taxed less that gas, that keeps american business competative to run those big trucks and vans. Higher Gas taxes will PROVE to generate income ( duh), reduce teh consumption of gas, spur R&D in alternative fuels, creating high paying jobs, and reduce the impact on our planet thru the making of smaller cars ( less natural resources to make them ) and more efficent milage.. this is plain and simple good econimic sense.
gas price up food and comodity prices will go up poor people drive 500 dollar car because they can not aford a new one what about them didnt thank about them.when fuel prices went in 2008 that when the trucker lost there trucks and could not afford to operate
I am 100% for an increase in gas tax. The US needs to join the rest of teh world and be responsible about the use of earths resources. no where else do families have a baby, and they parents feel compelled to run out and buy a Tahoe or Suburban. Diesel is so much more efficient and should be taxed less that gas, that keeps american business competative to run those big trucks and vans. Higher Gas taxes will PROVE to generate income ( duh), reduce teh consumption of gas, spur R&D in alternative fuels, creating high paying jobs, and reduce the impact on our planet thru the making of smaller cars ( less natural resources to make them ) and more efficent milage.. this is plain and simple good econimic sense.
I agree with a gas tax, so long as the gov’t is held accountable for how it spends that money. I personally think it should be spent on developing alternative fuel tech.
I agree with a gas tax, so long as the gov’t is held accountable for how it spends that money. I personally think it should be spent on developing alternative fuel tech.
I could see increasing it by a 25 to 50 cents a year until it hits a “reasonable” price. it would give people time to get into more efficient transportation while tipping the scales back toward cleaner methods.
However, I still have a problem with any sort of tax increase while our military spending remains at it’s current levels.
I could see increasing it by a 25 to 50 cents a year until it hits a “reasonable” price. it would give people time to get into more efficient transportation while tipping the scales back toward cleaner methods.
However, I still have a problem with any sort of tax increase while our military spending remains at it’s current levels.
I agree with Alex and Lee. Just raising the tax isn’t good enough. Our existing roads are falling apart and need additional funding so let’s take some of that military spending and funnel it into domestic projects. I can’t support higher taxes on anything unless I know how that money is going to be spent
I agree with Alex and Lee. Just raising the tax isn’t good enough. Our existing roads are falling apart and need additional funding so let’s take some of that military spending and funnel it into domestic projects. I can’t support higher taxes on anything unless I know how that money is going to be spent
While we all know the tech for fully electric vechicles is not here yet, those of you who think the oil companies are getting filthy rich don’t know the whole story, the government recieves royalities, wellhead fee’s, royalities on pipelines crossing feredal and state waters, even charge for MMS [the gulf police] to come out uninvited to inspect platforms. This is like a cop charging a fee to pull you over and write you a ticket!!!!plus many more fee’s.
The government makes more money on oil than the greedy oil companies—so who’s the greedy one’s????
I’m all for states who don’t allow drilling charging an extra $2.00 a gallon for you to drive your massive suv’s
We still need drilling and will for atleast 20 years, we can’t keep subsudizing things like bio-fuel and battery tech that don’t pay for them selves–this and obama holding up drilling by holding up the eviromental impact studies are costing a million high paying AMERICAN JOBS
I’ve said this about a dozen times on this site, but I’ll say it again: I’d support a gas tax shift. That is, lower income/payroll taxes and increase gas taxes to cover the lost revenue. Of all the taxes out there, the gas tax is among the most fair. It allows people to avoid it or reduce it by their own actions, it discourages wasteful consumption, it benefits health (by encouraging walking, biking), and it lowers traffic congestion.
I’m never in favor of tax increases, however, which is why I’d only support it with some other tax cut. Tax increases only encourage more gov’t overspending, then before long they need another increase, and so on, and so on.
I’ve said this about a dozen times on this site, but I’ll say it again: I’d support a gas tax shift. That is, lower income/payroll taxes and increase gas taxes to cover the lost revenue. Of all the taxes out there, the gas tax is among the most fair. It allows people to avoid it or reduce it by their own actions, it discourages wasteful consumption, it benefits health (by encouraging walking, biking), and it lowers traffic congestion.
I’m never in favor of tax increases, however, which is why I’d only support it with some other tax cut. Tax increases only encourage more gov’t overspending, then before long they need another increase, and so on, and so on.
And just how many of you rich kids want to pay for the gasoline needed by those of us old folks living, or tryint to liv eon Social (in)Security?
Then of course the taxes already exceed the profit of the oil companies by quite a bit. But I am sure that we can count on the Democrats to now make the oil companies out as bandits just as they did with the health insurance companies who make less than 4% profit.
Now if we could just get congress to work with less than 4% of the gross domestic product, we’d be in great shape. Shall we try that?
And just how many of you rich kids want to pay for the gasoline needed by those of us old folks living, or tryint to liv eon Social (in)Security?
Then of course the taxes already exceed the profit of the oil companies by quite a bit. But I am sure that we can count on the Democrats to now make the oil companies out as bandits just as they did with the health insurance companies who make less than 4% profit.
Now if we could just get congress to work with less than 4% of the gross domestic product, we’d be in great shape. Shall we try that?
I fully support increasing taxes on all fossil fuels, especially for gasoline. America’s artificially low prices for energy (compared to Europe) has prevented the growth of alternative forms of energy and high-efficiency vehicles. Every attempt to legislate higher mileage on Detroit was undermined by loop-holes and exceptions that created a surge in giant SUVs. Congress’ ethanol mandate is just a totally stupid idea created by legislators who can be bought without understanding the consequences of the laws they create. Dramatically raising the energy tax will have a natural consequence that, in the long term, will benefit all Americans and the world. It’s not an easy decision, but a necessary one for our nation to once again survive and prosper. Plug in Electric Cars, High Efficiency Diesel Cars, and Hybrid Cars are already taking hold in America. Use the energy tax revenues to offer incentives to those purchasing these new vehicles that can reduce our dependence on fossil fuels and keep more money in the US economy.
I fully support increasing taxes on all fossil fuels, especially for gasoline. America’s artificially low prices for energy (compared to Europe) has prevented the growth of alternative forms of energy and high-efficiency vehicles. Every attempt to legislate higher mileage on Detroit was undermined by loop-holes and exceptions that created a surge in giant SUVs. Congress’ ethanol mandate is just a totally stupid idea created by legislators who can be bought without understanding the consequences of the laws they create. Dramatically raising the energy tax will have a natural consequence that, in the long term, will benefit all Americans and the world. It’s not an easy decision, but a necessary one for our nation to once again survive and prosper. Plug in Electric Cars, High Efficiency Diesel Cars, and Hybrid Cars are already taking hold in America. Use the energy tax revenues to offer incentives to those purchasing these new vehicles that can reduce our dependence on fossil fuels and keep more money in the US economy.