Is the proposed gas tax holiday a bad idea or what !?

http://www.msnbc.msn.com/id/24388777/

 

My thoughts in a long rant (WARNING: contains a few "colorful metaphors" as Spock would say; apologies--I rarely use them in my writing, but the writer in me feels they add rather than detract from the communication in this instance.
-> http://geekhabitat.com/1299/gas-tax-holiday/

My short answer -> Yes, it's a bad idea.

 

I believe the educated people in this country would all agree it is a bad idea. Unfortunately, politicians always prey on the uneducated. Their votes count just as much.

 

Bad idea.

 

Government is racking in a huge tax windfall. They make more money just like big oil companies when the price goes up.

The tax rate does not reflect the sudden increase in gas prices therefore they should lower it or give a tax holiday, there is no justification by the government to gouge consumers like big oil and OPEC.

 

A very small band-aid to a much LARGER problem. The government needs to find alternate fuels solutions (and I do not mean this continual focus on CORN-I mean ETHANOL). It is so ironic that the ETHANOL Law was passed so QUICKLY. Hmmm, I just wonder if a PHEV would pass that quickly. Highly doubtful until we see the BIG OIL MONGERS leave.

 

You are saying the U.S. Federal government is operating at a net profit, like the oil companies? *cough* That would be highly inaccurate. -> http://origin.www.gpoaccess.gov/usbudget/

Are you saying the Federal government is not also a major consumer of oil, gasoline & diesel fuels? (Uhm, hello, we have a war machine to fund daily; those jets, helicopters, HMMVs, ships, etc. all have to be fueled.) As consumers, they have to pay the high prices, too. Time to rethink that assertion, methinks.

How is the U.S. Federal government gouging when, just as you note, the tax rate has remain unchanged with respect to the rising costs -- that's because the tax is not based on how much gasoline or diesel fuel costs per gallon, but is rather a set tax amount per gallon of fuel purchased. Considering I read just yesterday that U.S. gas and diesel fuel consumption is down 1.9% in the past year, the U.S. Fed is in fact earning LESS gas tax revenue now than it was 12 months ago.

And, finally, the gas tax proceeds go to fund road maintenance, construction and other transportation projects unlike the oil companies profits which in large part aren't being spent to aid the public good (it remains to be seen if that's their job, BTW.) Yes, the U.S. Fed could do better at wisely allocating and spending its gas tax revenue, but that is an entirely different kettle of fish from saying they're making a profit or earning more now as a result of the higher oil/gas/diesel prices.

 

Slight problem here with logic. The Federal gas tax and most of the state gas taxes are levied on a per gallon basis. When the price per gallon goes up the tax does not. In fact, since people tend to use a bit less gas when the price rises, the tax revenues fall.

 

Tax holiday? IMHO they should do just the reverse, tax the crap out of gas with a cigarette style "sin tax". Use the extra money to support alternate, renewable energy and maybe even start paying on the huge national debt.

 

Wow that is quite a rant (and not entirely family friendly). Well said, all true, dittos, etc.