[lbo-talk] A Case for a Higher Gasoline Tax

Matt lbo4 at beyondzero.net
Wed Jan 11 09:09:29 PST 2006


On Wed, Jan 11, 2006 at 11:36:37AM -0500, Doug Henwood wrote:


> Funny you should pick two countries where gas costs $5/gal.

And two countries whose geography and population densities support mass transit already.


> This "screwing the poor" business sounds like something an oil
> lobbyist would say. The American masses consume a lot of energy, and
> if we're going to use less of it (assuming no techno breakthrough is
> imminent), then the poor and working class will have to use less
> energy. The "screwing" part could be addressed through income tax
> rebates, like I said.

But what I pointed out is that the price of oil is directly related to manufacturing expense, and cost increases there are not going to be reclaimed in executive salaries - they are going to come from elimination of defined-benefit plans and layoffs.

Considering we have Congressional hearings into "price gouging" and local laws passed in the wake of the Gulf Hurricanes, the American public doesn't seem to have a lot of stomach for rising costs at the pump, either. The people passing gas-tax laws do, after all, need to be elected and they like to stay elected.


> I realize there are enormous political and practical obstacles to
> getting serious about this, but I can't think of anything more
> urgent, can you?

Not related to the environment, but I do like Sweden's approach of encouraging changes by tax subsidies, credits and exemptions. This may mean more tax credit for the Corporations who switch and do the R&D into renewable energy, but if you look at these charts:

http://www.eia.doe.gov/oiaf/1605/ggccebro/chapter1.html

Industry consumes more energy than Transportation, and Industry results in almost as much CO2 emissions as Transportation. Subsidizing changes from CO2 emitting energy sources in Industry seems more practical than hitting consumers at the pump, or industry and consumers with taxes on crude. And so does funding it via Income tax increases (as Jordan suggested).

Matt

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