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Old 04-15-2008, 12:57 PM
markedixon markedixon is offline
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Default McCain: Make Gas Cheaper

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McCain proposes suspending US gasoline taxes this summer

By LIZ SIDOTI, Associated Press Writer
PITTSBURGH - John McCain called Tuesday for the federal government to free people from paying gasoline taxes this summer and ensure that college students can secure loans this fall, proposals aimed at stemming the public's pain now from the troubled economy.
In the longer-term, the certain Republican presidential nominee said he would double the tax exemption for dependent children and offer people the option of choosing a simpler tax system.
"We know from experience that no serious reform of the current tax code will come out of Congress, so now it is time to turn the decision over to the people," McCain said in a sweeping economic speech at Carnegie Mellon University a week before Pennsylvania's primaries.
To help people weather the downturn immediately, McCain urged Congress to institute a "gas-tax holiday" by suspending the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day. He also renewed his call for the United States to stop adding to the Strategic Petroleum Reserve and thus lessen to some extent the worldwide demand for oil.
Anyone else thing it's a good idea to make gas cheaper, and thereby (1) boost demand for a diminishing resource obtained from thuggish regimes and (2) discourage the substitution of more sustainable energy sources?
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Old 04-15-2008, 01:03 PM
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Anyone else thing it's a good idea to make gas cheaper, and thereby (1) boost demand for a diminishing resource obtained from thuggish regimes and (2) discourage the substitution of more sustainable energy sources?
My initial question would be how he plans to pay for the stuff that those gas taxes go towards, typically transit maintenance. I'm all for lowering taxes, but you have to say how it affects the budget.
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Old 04-15-2008, 01:20 PM
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What would keep the oil companies from raising their price to the current level with tax, allowing them even greater profit?
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Old 04-15-2008, 02:26 PM
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What would keep the oil companies from raising their price to the current level with tax, allowing them even greater profit?
Because if they all agreed to raise the price together, it is collusion and the trust busting authority of the government could lay the hammer down on them.
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Old 04-15-2008, 02:57 PM
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Anyone else thing it's a good idea to make gas cheaper, and thereby (1) boost demand for a diminishing resource obtained from thuggish regimes and (2) discourage the substitution of more sustainable energy sources?

I don't think it's a good idea, though I don't know if it's much worse of an idea than sending everyone a $600 check. Maybe a little, because it disproportionately benefits people who made predictably poor decisions, like using a Yukon or Armada to drive one person to work.

I disagree with stopping adding to the strategic petroleum reserve.

Quote:
My initial question would be how he plans to pay for the stuff that those gas taxes go towards, typically transit maintenance. I'm all for lowering taxes, but you have to say how it affects the budget.
Just print more dollars. We'll pay for the deficit later.
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Old 04-15-2008, 03:06 PM
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Two cheers to McCain for going after the folks gouging drivers at the gas pump: state and federal governments.
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Old 04-15-2008, 03:36 PM
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Two cheers to McCain for going after the folks gouging drivers at the gas pump: state and federal governments.
Gas Taxes pay for important stuff.
They should make them higher.
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Old 04-15-2008, 03:40 PM
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At least it's only during the summer.


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Old 04-15-2008, 04:13 PM
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Two cheers to McCain for going after the folks gouging drivers at the gas pump: state and federal governments.
Now I generally hate taxation as much as the next conservative; but my primary problem with the state and federal governments laying pigovian taxes on the consumption of gasoline is the obnoxious know-nothings who blame oil companies and politicians for high gas prices, but fail to recognize that the state and federal governments take larger slices of each gasoline dollar (and don't generate one-tenth of the productivity that gasoline producers and consumers do).

I generally support high gas taxes much more so than other taxes. I point you to Greg Mankiw's blog for further discussion of why pigovian taxes are appropriate. Of course, he doesn't have tags on his site to find his posts on pigovian taxes, but if you google "greg mankiw" and "pigou," you'll probably get a lot of results. [Boy, that's great. I don't even have to explain how they work. I can just point to Mankiw and say, "ta da!"]
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Old 04-15-2008, 05:29 PM
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Now I generally hate taxation as much as the next conservative; but my primary problem with the state and federal governments laying pigovian taxes on the consumption of gasoline is the obnoxious know-nothings who blame oil companies and politicians for high gas prices, but fail to recognize that the state and federal governments take larger slices of each gasoline dollar (and don't generate one-tenth of the productivity that gasoline producers and consumers do).
Which is why I was glad McCain pointed the finger at the taxes instead of the oil companies. I just find it irritating when a lawmaker votes for an increase in the gas tax and then goes on television complaining about the high cost of gas.

BTW, I'd like someone to come up with a concept like a "Pigovian rebate." It would involve paying people back for the negative externalities of government actions like unwise regulation or poorly conceived market interventions.
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