[MacosNerd]

We've been seeing this bantered about from the candidates. It's certainly a hot button topic that from a knee jerk reaction sounds like a really good idea. I mean with gas approaching 4 bucks a gallon, wouldn't it be nice to save 18 cents on each gallon.

Of course I see a couple of problems with this idea.
First there's no guarantee that the oil companies will feel so moved to reduce the gas price by $.18. They'll either not do anything, or cut the price a few cents citing costs associated with changing the price.

Then there's the whole supply and demand issue. We drive more because its cheaper, it will reduce the supply, thus increasing the price

I hate to say this as well but where will the gov't get the money they lose out from the gas tax. Its not like our roads and bridges are in pristine shape as it is. The gas tax goes to maintaining our roads/bridges.

Finally what will happen next year (though this just an election year ploy). Should we reduce the price in the summer of 09 because gas is approaching 5 bucks a gallon?

[design219]

It's not going to be enough to make a positive, personal difference.

[olePigeon]

You'll save $2, assuming you fill up once a week.

The gas tax funds $10 billion worth of transportation projects that are already underfunded. 18 cents is not going to break your wallet, it's not going to lessen our dependency on foreign oil, and stopping the gas tax will only add another $10 billion to our debt. We'll then have to borrow more money from China to pay for our transportation budget.

It's the dumbest idea I've heard come out of the candidates.

[olePigeon]

On a side note, we have some of the cheaper gas in the world. If you want to drive a gas guzzler, you'll have to pay more for gas. The rest of the world's dealing with it, so can America. Just be thankful you don't have to drive a car in Aruba, it's $14/gallon there.

[smacintush]

Election. Year. Nonsense.

[BRussell]

Originally Posted by olePigeon 

You'll save $2, assuming you fill up once a week.

And that's assuming that the gas companies actually drop the price of gas, rather than just pocket the difference.

[Buckaroo]

Hmmm, I'm not sure if it's good or bad.

I believe this whole oil price through the roof thing is created by the big Oil companies. The whole thing is another Enron scam.

They make out like a bandit when oil prices are high because of all the oil wells they own. They have NO reason to discourage high oil prices. They both buy and sell oil. They get huge profits when they get to sell their own oil at the same prices as the Middle East. They don't care that the constant drain of our wealth to the Middle East is bankrupting this country. All they care about is the buck that they get.

[Buckaroo]

The price of oil is a serious problem, and I don't believe our elected officials have a clue of the affect.

Sure less traffic is good, people need to drive smaller cars anyhow. But the problem is now there's less commerce all together. It slows down the economy, and transfers our wealth to the Middle East.

[Buckaroo]

I'm not sure, but wasn't a barrel of oil somewhere around $40 just 2 years ago? Now it's over $120/barrel.

[64stang06]

Originally Posted by BRussell 

And that's assuming that the gas companies actually drop the price of gas, rather than just pocket the difference.

They'll just raise the price the night before the holiday, then lower it to make it seem like you're saving money.

[Mithras]

----> ?

[tie]

No gas company would drop its prices. The idea is completely stupid. (At least Hillary says she'll fund it, whereas McCain will just borrow the money from China. Why should our government borrow money to give to gas companies?) This is the most basic economics.

This morning, George Stephanopoulos began his televised interview with Senator Hillary Rodham Clinton by asking if she could name a single economist who supported her plan for a gas-tax suspension.

Mrs. Clinton did not. “I’m not going to put in my lot with economists,” she said on the ABC program “This Week.” A few moments later, she added, “Elite opinion is always on the side of doing things that really disadvantages the vast majority of Americans.”

Look. This isn't hard. The supply of gas over the summer is basically fixed; refineries are running flat out, and can't quickly add capacity. Retailers won't respond to more demand by selling more gas --- because they can't. So, what does happen? They keep raising the price of the stuff they have until they can no longer sell it all
link

[peeb]

Originally Posted by olePigeon 

You'll save $2, assuming you fill up once a week.

The gas tax funds $10 billion worth of transportation projects that are already underfunded. 18 cents is not going to break your wallet, it's not going to lessen our dependency on foreign oil, and stopping the gas tax will only add another $10 billion to our debt. We'll then have to borrow more money from China to pay for our transportation budget.

It's the dumbest idea I've heard come out of the candidates.

QFT. This thread can be closed now.

[MacosNerd]

Originally Posted by smacintush 

Election. Year. Nonsense.

Originally Posted by BRussell 

And that's assuming that the gas companies actually drop the price of gas, rather than just pocket the difference.

Yes, of course its election year nonsense, and it may be possible to constuct the bill in such a way to make it advantageous to the oil companies so they do drop the price (not that I trust the politicians or oil companies) but for some inane reason the billion dollar corporations enjoy tax credits. They don't want to risk losing them and so that could be used as leverage.

All in all, it will probably hurt us more then it helps

[kido331]

Originally Posted by olePigeon 

You'll save $2, assuming you fill up once a week.

The gas tax funds $10 billion worth of transportation projects that are already underfunded. 18 cents is not going to break your wallet, it's not going to lessen our dependency on foreign oil, and stopping the gas tax will only add another $10 billion to our debt. We'll then have to borrow more money from China to pay for our transportation budget.

It's the dumbest idea I've heard come out of the candidates.

So why not double gas taxes then? If the transportation projects are underfunded and we want to hasten the end of our dependency on foreign oil, then why not add another 18 cents to the current tax? after all, 36 cents isn't going to break your wallet either.

also, i bet long haul truckers and taxi drivers don't think it is a dumb idea.

[Captain Obvious]

No worse of an idea than corn based ethanol in the gas supply. Yet there it is and widely supported.

[Rumor]

Originally Posted by Captain Obvious 

No worse of an idea than corn based ethanol in the gas supply. Yet there it is and widely supported.

Which hurt all sorts of markets because farmers choose to grow corn instead of what they usually do.

[ctt1wbw]

Originally Posted by olePigeon 

On a side note, we have some of the cheaper gas in the world. If you want to drive a gas guzzler, you'll have to pay more for gas. The rest of the world's dealing with it, so can America. Just be thankful you don't have to drive a car in Aruba, it's $14/gallon there.

I read on msnbc that gas in China is state controlled at $2.90 a gallon. I'm sure it's about .20 a gallon in places in Iran. I still think gas is so overvalued in the US. I think a year or so ago a barrel of oil was about 70 bucks per. There's no reason it's shot up to over 120 per now.

[ctt1wbw]

Originally Posted by kido331 

So why not double gas taxes then? If the transportation projects are underfunded and we want to hasten the end of our dependency on foreign oil, then why not add another 18 cents to the current tax? after all, 36 cents isn't going to break your wallet either.

also, i bet long haul truckers and taxi drivers don't think it is a dumb idea.

Yep, seeing as how deisel is what, $4.20 a gallon in most places?

[awaspaas]

Supply and demand! Supply and demand! There's limited gas supply, especially in the summer, so if there's more demand, the price will go right back up, only this time the oil companies are pocketing it, instead of it being used to fix roads. EVERY economics expert interviewed about the issue has said the exact same thing.

This is the dumbest idea I've heard come from the candidates as well. And it's especially sad because it's pandering to the uneducated portion of the population that thinks this is a good idea.