Redstate

Iustum et tenacem propositi virum non civium ardor prava iubentium, non vultus instantis tyranni mente quatit solida.
-Quintus Horatius Flaccus

...unless someone can convince China and India to stick with their bicycles and stop modernizing.

The true benefit of a gas tax holiday would be to increase the public's awareness of how much of that gas bill goes to the government who has zero cost invested in drilling, refining, and shipping the product.

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"We want great men who, when fortune frowns, will not be discouraged." - Colonel Henry Knox

or anything about consumption

It is about economic stimulus.

If all you want is "economic stimulus," just reduce the amount of withholding from paychecks without incurring penalties.

And that way, people can spend their extra money on things that are more important to THEM.

But reducing the tax on gasoline is a direct incentive to purchase more gasoline. That's simple supply and demand. And Obama is right--that will just cause the price of oil to be bid up even higher, resulting in more profits to the Muslims and Venezuelans of OPEC.

that the cost of gasoline affects the whole economy. By increasing transportation costs, you are increasing the cost of all goods (including food). Increasing taxes in order to reduce demand is a good way to strangle the economy, as we're currently seeing. The only real way out of this mess is to increase supplies of fuel. We won't conserve ourselves to prosperity. It has never happened and it never will. AT least if we reduce taxes for the summer, we can give everyone a breather then get after the hard work of forcing congress to realize we need to drill more and start converting coal to gas.

but in the long run, raising taxes on fuel might be the way to go.

IF:
1) it is used to take the place of fuel standards and other regulations
2) it is offset by lowering other taxes.
3) it takes the place of subsidies for ethanol and all other direct alternate energy subsidies

It would not just have an effect on conservation, it would make alternate sources of energy more cost effective.

"Nothing works like freedom, Nothing succeeds like liberty"
Kyle

Remember, we are talking transportation fuel here. There is no effective substitute around for the forseeable future. We can see the mess ethanol is making, without really making a dent in the cost of fuel. Unless we can magically create 500 nuclear power plants overnight, we're not going to plug- in electric cars. Hydrogen as a transportation fuel is still about a trillion or two dollars for infrastrucutre changes and a major scientific breakthrough on fuel cells away. Therefore, what are we going to do that will be effective other than increasing the supply of gasoline and oil by drilling and converting coal to gas? Don't get me wrong, conservation and energy effeiciency are fine and help at the margins, but economic growth depends on readily available, low cost sources of fuel, and until we get busy increasing the supply, oyr fuel will be neither readily available nor low cost.

it is used for energy generation, and so the tax would help alternatives right away. I also think you are underestimating the capacity for fuel economy. I live in a city in which the MAJORITY of vehicles on the road are large trucks or SUV's the majority of them having only one occupant.

But at any rate I am only advocating those taxes if they are offset, (or more than offset) by income tax reductions.

"Nothing works like freedom, Nothing succeeds like liberty"
Kyle

while the back and forth on the merits of a tax on gas at the state and fed level is good, let's not forget the base point here (well, beyond Obama flip flopping that is ;-)

The Fed can give up 300 bucks from a lot of us for this year's tax revenues..saying it will bolster the economy by putting money back in our pockets so we can go spend it. We agree, yes?

Of course, at 300 bucks, most of it will go to China via WalMart, but I digress.

Why then wouldn't the same logic apply with a summer vacation from the gas tax? More people may drive a LITTLE more...when they drive, they will "likely" be doing so to go spend money somewhere...and the "consumer confidence" during the summer travel months MAY stir upwards ever-so slightly.

personally, the base problem is that Congress wont LET us do alternative things like build nuclear power plants for the longer term good, expand drilling and build more refineries for the shorter term good, etc

These scumbags only care about their special interest voting blocs-they could give a flip about the "plight" of we the people.

How's that farm subsidy bill working out for our having unfettered access to a lower-priced food supply? Gas prices couldn't POSSIBLY be having anything to do with the increased crisis over food prices..could they?

Anyone?

Iustum et tenacem propositi virum non civium ardor prava iubentium, non vultus instantis tyranni mente quatit solida.
-Quintus Horatius Flaccus

therefore, the elimination of the gas tax (for the summer) would have no effect on electric generation and no real impact on alternative energy. It will however, give the average consumer a few more bucks back in his pocket than most people realize because it won't just save you on gas purchase, but would at least temporarily reduce the transporation costs of every other consumer good, including food by reducing transportation costs.

1. On state gas taxes, they range from a high of $.445 (NY)to a low of $.08 (AK). Three states are over $.40 - NY, CA & HI.

With respect to property taxes, if your property taxes are based on the current value of your home (or some arcane formula that takes it's cv into account), you should be able to appeal your valuation and get your taxes lowered. That's happening like clockwork in Maricopa County AZ.
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CongressCritter™: Never have so few felt like they were owed so much by so many for so little.

Even assumming youre in one of the low states that have 18-20 cents a gallon in state taxes, the extra tax cut at the state level would double the relief, amounting in ~37 cents per gallon saved by the consumer, which approaches 10% of what many of us are currently paying for a gallon. I know that it would save me a bundle.

...just loves to practice her righteous indignation in front of one of her favorite things (a microphone) and several of her least favorite things (capitalist oil executives) while California pockets $0.40 per gallon.

--
"We want great men who, when fortune frowns, will not be discouraged." - Colonel Henry Knox

about $0.108 and considered to be "excessive" and "windfall".
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CongressCritter™: Never have so few felt like they were owed so much by so many for so little.

appeals in Texas (certain metro regions anyway) have snapped to that and are draging appeals out two and three tax bill cycles.

good points though-but not necessarily always a quick fix to the problem.

Iustum et tenacem propositi virum non civium ardor prava iubentium, non vultus instantis tyranni mente quatit solida.
-Quintus Horatius Flaccus

If anything, they exacerbate it. What the assessor more likely should do is simply adjust all assessments by zip code or other convenient guideline and then let the pols deal with the result.
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CongressCritter™: Never have so few felt like they were owed so much by so many for so little.

your property taxes are based solely on what you paid for your home. Cuts the appeals process way down and is great in a market where home values are increasing. Oh well...
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CongressCritter™: Never have so few felt like they were owed so much by so many for so little.