Mccain Gas Tax Proposal

[05silvycrew]

I just caught on the national news that McCain has proposed to cut the federal tax on gasoline from Memorial day through Labor day. Can you believe a politician is talking about something that the general public cares about!?!

 

What do you think:

1) It passes and we actually save a little bit at the pump this summer

2) It's never going to pass and is just a political ploy

[VMax2007]

Shouldn't this be in the "Off-Topic" section?

[Zembonez]

I just caught on the national news that McCain has proposed to cut the federal tax on gasoline from Memorial day through Labor day. Can you believe a politician is talking about something that the general public cares about!?!

 

What do you think:

1) It passes and we actually save a little bit at the pump this summer

2) It's never going to pass and is just a political ploy

Pure phony symbolism. If they do it, gas suppliers will make up the difference with a price increase.

[VMax2007]

Pure phony symbolism. If they do it, gas suppliers will make up the difference with a price increase.

 

Why? It's a Tax reduction, the suppliers would still get the same amount.

[slomo007]

I just caught on the national news that McCain has proposed to cut the federal tax on gasoline from Memorial day through Labor day. Can you believe a politician is talking about something that the general public cares about!?!

 

What do you think:

1) It passes and we actually save a little bit at the pump this summer

2) It's never going to pass and is just a political ploy

Pure phony symbolism. If they do it, gas suppliers will make up the difference with a price increase.

 

 

Disagree completely that suppliers would do that.

 

It's a great idea in theory but all I hear about is how the road funds are too low and hence why more toll roads are being built. Since I believe the road funds come directly from the gas tax, doesn't this just make that problem worse?

 

All in all I'm happy with it though, I'd actually be in favor of no gas tax and 100% toll roads.

[D&SYukonDenali]

They'll give here, take back somewhere else. It will all net out in the end.

[VMax2007]

They'll give here, take back somewhere else. It will all net out in the end.

 

I actually agree with this and I will now retract my previous statement. This would likely increase useage and demand and it would give the Big Oil companies an excuse to raise the price of crude oil even more.

[Zembonez]

Pure phony symbolism. If they do it, gas suppliers will make up the difference with a price increase.

 

Why? It's a Tax reduction, the suppliers would still get the same amount.

 

GREED! Always follow the money.

 

Once the public is accustomed to a certain price, that amount becomes the norm. Suppliers will do everything they can to keep the price just as high as we will tolerate. If there was for example a 30 cent drop via tax cut... the suppliers would "find a way" to bump the price at least 25 cents. The idiotic general public would still see a "price cut" of 5 cents a gallon and be happy.

[Zembonez]

HERE'S THE MCCAIN ARTICLE

 

Howdy Fred.

[hubbycap]

Currently: price high, demand reduced, surplus increases, price drops.

 

Drop/lower tax: price drops, demand increases, surplus decreases. price rises.

 

So.o.o.o.o

 

Lower the tax: demand increases, price rises, no tax collected to maintain infrastructure.

 

Do nothing: infrastucture maintained, equilibrium reached, prices stabilize.

 

I hate tax, but a use-based tax is fair.

[sulman]

Decreased tax=increased demand. Increased demand=increased price. Oil companies win again.

[McBain]

This has already been tried in Illinois and Indiana back in 2000 when gas prices were at ridiculous levels, above $1.60/gal.

As I recall prices did go down initially and then rebounded as the supply chain upped prices to share in our good fortune. The states lost quite a bit of tax revenue and although consumers did save some money, it didn't really work like the politicians expected. There is a decent, somewhat brief, case study of this here: Illinois Indiana Gas Tax Study

[hubbycap]

Decreased tax=increased demand. Increased demand=increased price. Oil companies win again.

 

 

I'm not jealous of the profit incentive for oil companies, more important is the increased cost to consumers in travel expense and additional transportation cost. The law of unintended consequences prevails here. The politically expedient action of a tax holiday will not help in the long run.

 

 

Evening Jim, Canadian Mist and Cocola.

[strafingmoose]

I tend to disagree with the general consensus about the market making up the difference if taxes were cut. Here, 35% of a 1$ liter (when it was that price) is taxes.

 

With the price at 0.65$ a liter, for example the oil companies still make the same money but with increased demand. (Which leads to more money for them) The price might go up a bit, but nothing close to a taxed product.

 

And forget about McCain doing anything about lowering taxes. He's pink on the inside. Same views of economics as a socialist

 

Sen. John McCain this morning said "greedy" Wall Street investors are partly to blame for what he said is probably an economic recession the nation is now suffering.

 

Not a word about the Fed though... Funny.

 

http://www.washingtontimes.com/apps/pbcs.d.../195874612/1001

[sulman]

Decreased tax=increased demand. Increased demand=increased price. Oil companies win again.

 

 

I'm not jealous of the profit incentive for oil companies, more important is the increased cost to consumers in travel expense and additional transportation cost. The law of unintended consequences prevails here. The politically expedient action of a tax holiday will not help in the long run.

 

 

Evening Jim, Canadian Mist and Cocola.

 

 

Yes. Decreased tax=increased demand. Increased demand=increased price.