How bio fuels could starve the poor

[thisisntjared]

i dont know, i think higher taxes on gas would ultimately be a good thing.

by ultimately i mean 10 years after the tax when all consumers are forced to buy more efficient vehicles. the only problem is the hit that everyone takes in the beginning.

[Bill in Houston]

Originally Posted by thisisntjared

i dont know, i think higher taxes on gas would ultimately be a good thing.

by ultimately i mean 10 years after the tax when all consumers are forced to buy more efficient vehicles. the only problem is the hit that everyone takes in the beginning.

And, it's regressive, meaning that it doesn't hit wealthy people proportionally harder than poor people. But, I think that if the federal gas tax would go up maybe 3 cents a year, every year, that might be good and would give people time to adjust...

[Jim Dunlop]

OK! I suppose I'd rather have taxes which "encourage" markets to go in certain directions than whose expressed purpose is to generate revenue.

It's kind of like the cigarette tax philosophy -- ultimately, as the government, by raising taxes on cigarettes you would hope to reach a point where you're not collecting taxes because people aren't buying cigarettes.

Bill, do you think businesses would have enough time to adjust? I know biodiesel is supposed to be the answer for trucking fleets, but isn't that a lot more expensive that diesel?

[Bill in Houston]

3 cents per year is much less than the standard market fluctuations that businesses have to deal with, so I think that it would be okay. But it is late for me, and I may be missing something.

[cfg83]

Bill -

Originally Posted by Bill in Houston

And, it's regressive, meaning that it doesn't hit wealthy people proportionally harder than poor people. But, I think that if the federal gas tax would go up maybe 3 cents a year, every year, that might be good and would give people time to adjust...

That's why I always spout that if I were president of the USA, I would raise gas taxes by one penny per month. That penny would go to renewable energy research and product funding (free solar panels, coal power plant pollution scrubbers, etc....), and prosecution of oil companies that are found to be colluding/gouging and such. I think that for the poor and truckers, there could be a sliding tax credit for money spent on fuel (save your receipts!!!!!!!!!!!!) up to income X.

The whole idea is that at one penny per month, you and the economy would *know* it's coming and adjust accordingly.

.... Of course, the day after I announced this, I would be shot .

CarloSW2

[cfg83]

Jim -

Originally Posted by Jim Dunlop

OK! I suppose I'd rather have taxes which "encourage" markets to go in certain directions than whose expressed purpose is to generate revenue.

It's kind of like the cigarette tax philosophy -- ultimately, as the government, by raising taxes on cigarettes you would hope to reach a point where you're not collecting taxes because people aren't buying cigarettes.

Bill, do you think businesses would have enough time to adjust? I know biodiesel is supposed to be the answer for trucking fleets, but isn't that a lot more expensive that diesel?

I always think of the cigarette tax ceiling to be "how much can we charge until cigarettes go black-market underground?".

CarloSW2