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  1. #21  
    Quote Originally Posted by KRamsauer
    I think we can come to a relative agreement on the figure. Whatever it is, it ain't zero. How to deal with the increased prices of transportation? Let the market figure it out. That is what markets are good at: given prices and costs, they automagically figure out the cheapest way to generate the most profit. I propose a gradually increasing tax to minimize disruptions.
    Well IF other taxes could be reduced (a big if), I suppose I wouldn't reflexively oppose a higher gas tax.

    One thing puzzles me: oil has gone up dramatically over the past 3-4 years or so. Why haven't prices followed? It's a tangent, but an interesting one...
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  2. #22  
    The cost of transportation is such an important factor in almost all forms of commerce. The smallest long term increase sends major ripples through almost every industry in the form of reduced profits (minus the gas companies of course.) I can't imagine taking the bottom line profitablity of probably 90 plus % of every business out there and lowering their profits. What would happen just here in America. (Postal costs increase..direct mail...advertising...higher. Shipping truck, oceanliner, air...produce...hardgoods...all paper goods...all building materials..wood/steel..etc..this list could go on and on.

    I don't think a fuel tax increase without some very serious checks and balances rolled into it would be a fix. I think it would cripple the us economy.
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  3. #23  
    Quote Originally Posted by KRamsauer
    By approximating this cost with a tax (and thereby reducing the tax burden elsewhereundefined), you can efficiently price fuels for the first time in history, and then, as you say, let the market do its thing.
    There's the flaw in your argument. There will be no compensatory reduction in any other tax, only an increase in consumer goods prices to compensate.
  4.    #24  
    Quote Originally Posted by phurth
    Well IF other taxes could be reduced (a big if), I suppose I wouldn't reflexively oppose a higher gas tax.
    You're right. It's almost impossible to get politicians to reduce taxes ("their money" not my money).
    Quote Originally Posted by phurth
    One thing puzzles me: oil has gone up dramatically over the past 3-4 years or so. Why haven't prices followed? It's a tangent, but an interesting one...
    Prices of what?
  5.    #25  
    Quote Originally Posted by Gasmeister
    There's the flaw in your argument. There will be no compensatory reduction in any other tax, only an increase in consumer goods prices to compensate.
    Uh, yes there is. It's my argument, and I'm telling you there must be a reduction in other taxes...
  6.    #26  
    Quote Originally Posted by pizzarascal
    I don't think a fuel tax increase without some very serious checks and balances rolled into it would be a fix. I think it would cripple the us economy.
    Let's look at it this way: I am proposing a dollar a gallon increase, offset by reductions in taxes elsewhere to make the net effect zero. Now, how is this not BETTER than what we've seen in the last few years (where the price of gas has gone up more than that but without any reduction in taxes, just a wealth transfer to the the oil companies)? Surely we aren't "crippled" now having experienced a situation worse than what I'm proposing?
  7. #27  
    Quote Originally Posted by KRamsauer
    Prices of what?
    Everything that is presently transported by vehicles that burn fossil fuels.
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  8. #28  
    Quote Originally Posted by KRamsauer
    Let's look at it this way: I am proposing a dollar a gallon increase, offset by reductions in taxes elsewhere to make the net effect zero.
    Zero for people who pay other taxes that can be lowered. Lower to middle income people who pay very litle or no taxes already will be hit hardest by your proposed tax increase.
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  9.    #29  
    Quote Originally Posted by phurth
    Everything that is presently transported by vehicles that burn fossil fuels.
    Ah. The reason is simply that competition has limited the ability of firms to pass on the increased costs. Witness the airlines... The weakish economy following 9/11 has made firms very very reluctant to pass on the costs of increased fuel prices.
  10.    #30  
    Quote Originally Posted by phurth
    Zero for people who pay other taxes that can be lowered. Lower to middle income people who pay very litle or no taxes already will be hit hardest by your proposed tax increase.
    We already give "earned income tax credits" to the poorest, why not extend the notion? This isn't novel.
  11.    #31  
    I'm not the only one that favors a gas tax with rebate scheme:
    http://www.nytimes.com/2006/02/16/bu...=1&oref=slogin
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