Federal Gas Tax and the 2008 Candidates Senators Obama, Clinton and McCain

For each individual suspending the FEDERAL tax of 18/cents a gallon is shrugable - roughly $6 a month for those who average 1000 miles a month in their car. I latte at coffee shop.
To the US Highway trust fund - a BIG deal since they deal in pay as you go - thus all road projects are stopped - no money (they have NEVER managed finances well).

 

If the tax was 18 cents per dollar of retail - then it would be different - that would be 72 cents a gallon.

 

If you REALLY want to conserve fuel then the tax should be changed to 64 cents per gallon up front, and all licensed truckers, cities (government bodies), and commercial registered transporters would get refunded 75% of what they paid in tax back on income tax filing for that year - like it was in the 1960s when the tax laws tracked those deductions for gas taxes. Thus only the TRUE recreational drivers and work commuters would pay - and those that deliver the goods would pay some (but they already pay in other fees and licenses to states and Federals already) and then the Social Engineers would rejoice since the high price would help their goal of forcing people into wasting their time taking public transportation vs. convenience of using private vehicles.

 

The same social engineering people would rejoice even more since now only the "rich" would be driving cars and paying taxes to siphon off on pet mass transit projects from the Trust Fund and not feel guilty about it (Wait! they don't feel guilty now taking money from it to do that now.)

 

Would I hate having to pay 60 cents a gallon in Federal tax? Yes, would I pay to have the convenience of a car? Yes. Would all the people who do cannot afford the extra $16 a month in fuel costs drive less due to lack of money? Yes. Would the social engineers and environmentalists be happy? Yes!

 

Would the price of fuel go down? NO. Lower demand would force the price up per gallon so that the fuel companies to get the same gross income they have now to get the same net profit they have now. EVERY time conservation has worked in any commodity the people who have that commodity HAD to raise prices. This is even true for community owned electric utilities, water, gas etc - every time a big conservation plan worked the people who owned the stuff HAD to raise prices to stay in business. Net effect was just using less - never saving the end users ANY money.

 

Want to stop the growth of 8 lane highways - price all but the affluent out of cars by raising taxes till it hurts the masses and they drive less - and be sure to say to them that the rich are now supporting them in mass transit - and that if you want to drive cars then get an education to find a career that pays you enough to afford a car to drive to work.

 

Would this hurt people in the far west where a 50 mile drive to a hospital is considered a local drive? YES. Then you give all those who live in a rural census track the same tax breaks as businesses - refund 75% of fuel taxes they paid in.

You MUST index the tax to the CPI.

 

Hillary and McCain are pandering to a populist crowd - no impact in reality. Obama is right, meaningless gesture to people - big impact to the roads.

 

Now if states and the Federal government only spent the money collected in road taxes on roads . . .