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View Poll Results: How do you think suspending the gas tax would really work out?
Yes. Free market be damned, the price of gas will stay down 18.4 cents, I want my $30 dollars! 2 6.45%
Yes. I'll take less than a $30 tax reduction. I don't mind oil companies making billions on the deal 0 0%
Yes. Let the oil companies make billions, Hillary will muscle Bush to raise Oil Co. taxes. 0 0%
No. Oil companies will end up pocketing the lion's share of the suspended taxes, not me. 5 16.13%
No. The money needs to go to rebuilding roads and bridges. 10 32.26%
No. Lowing the price of gas is the wrong answer for getting off of Arab Oil/reducing oil use. 10 32.26%
This Nixon guy doesn't know what he's talking about. None of the above. 4 12.90%
Voters: 31. You may not vote on this poll

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      04-30-2008, 01:47 PM   #1
Nixon
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Gas Tax Poll

There are proposals on the table to suspend the 18.4 cent gas tax for three months this summer.

IF the oil companies ignore free market realities, and don't raise the price of gas at the pump to make up for the tax cut, the typical driver would save $25-$30 in gas over the summer.

If the oil companies allow the free market to adjust price following supply/demand realities, the price you pay won't go down by the full 18.4 cents. The oil companies could end up pocketing part, or all of the suspended tax over the summer. The increase in oil company profits could be up to the full $8.5 billion or more that could have been collected to build roads. (And used to pay the salaries of 300,000 construction workers building and repairing roads.)

What removing the gas tax WON'T do is to eliminate the free market realities of the effect of supply and demand upon prices. Removing the tax WILL NOT increase supply. It WILL increase demand.

Even worse, removing the gas tax for 3 months could raise the base price of gas over the long term. In the fall, the 18.4 cent gas tax could end up being tacked on ON TOP of the increased base price of gas. The oil companies could keep collecting much of their additional profits long after the tax holiday ends at the end of summer.

Having the gov't play with the gas taxes could result in car owners even paying MORE over the long run, instead of saving $25-$30 dollars.

To car owners it could look like this:

May 30th - Gas is $3.50/gallon

June 1st - Gas tax is suspended, price drops to $3.35/gallon (gas companies drop price by 15 cents, keep the remaining 3.4 cents for themselves.)

July 1st - Gas is back to $3.50/gallon on increased demand due to the price having gone down. Removing the gas tax doesn't magically increase the amount of gas that is refined, so increased demand==increased price. Gas companies now keep the entire 18.4 cents for themselves.

August 1st - Gas stable at $3.50/gallon as demand tapers back to match supply because of increased prices. Gas companies keep pocketing the 18.4 cents. Free market forces have returned prices, consumption, and reserves right back to where they were before the tax was suspended.

September 1st - Gas tax goes back into effect. Gas prices go up by 15 cents to $3.65/gallon. Gas suppliers keep pocketing the 15 cent difference.

October 1st - Prices drop to $3.55 on lower demand, but the gas companies continue to pocket the extra 5 cents throughout the rest of the year because consumers have adjusted to the higher prices and keep driving the same amount as before.
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      04-30-2008, 02:06 PM   #2
0002s
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You forgot

1. Drill for more US oil and add supply to World Market

2. DRASTICLY decrease government regulations to build new refineries

3. Stop the E85 stupidity so my corn based food/feed costs don't skyrocket out of control as well

4. Stop heavily taxing the US consumers and suppliers of oil and gas

Moral of the story: Federal Government knows very little about free markets and the effects of trying to control them.
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      04-30-2008, 02:08 PM   #3
Nixon
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Quote:
Originally Posted by 0002s View Post
You forgot

1. Drill for more US oil and add supply to World Market

2. DRASTICLY decrease government regulations to build new refineries

3. Stop the E85 stupidity so my corn based food/feed costs don't skyrocket out of control as well.

Moral of the story: Federal Government knows very little about free markets and the effects of trying to control them.

I think those are all good topics of discussion, but none of them would be directly affected by suspending the gas tax for the summer.

Maybe we could start another thread for those issues, and keep this one on the specific topic of suspending the gas tax for the summer?
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      04-30-2008, 02:11 PM   #4
0002s
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Quote:
Originally Posted by Nixon View Post
I think those are all good topics of discussion, but none of them would be directly affected by suspending the gas tax for the summer.

Maybe we could start another thread for those issues, and keep this one on the specific topic of suspending the gas tax for the summer?

Sorry Nixon, I thought we were going to discuss solutions to the oil/gas cost in the US.

They you really forgot:

1. Pandering to the voters
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      04-30-2008, 02:12 PM   #5
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What if I want to pick all three of the "No" choices?
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      04-30-2008, 02:18 PM   #6
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You also forgot that the current increases in price are not due to market effects of supply and demand. The supply is there. Also, statistically the US is using less gas than ever before.

Taxes aren't imposed by corporations, they are imposed by the government. The oil companies wouldn't lose money if the gas tax was suspended, the government would. And the gov would recover more than that if they didn't subsidize companies making $123B profit.
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      04-30-2008, 02:22 PM   #7
Nixon
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Quote:
Originally Posted by 0002s View Post
Sorry Nixon, I thought we were going to discuss solutions to the oil/gas cost in the US.

Then you really forgot:

1. Pandering to the voters
You nailed it on #1. Pandering season has reached full stride.


Solving the energy/oil/gas cost problem in the US is just way too big a topic for me to tackle... I'm just one dead president.
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      04-30-2008, 02:25 PM   #8
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You forgot "end unnessesary/pointless military operations in the middle east"

The US Military is the single largest consumer of petroleum based fuels in the world.
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      04-30-2008, 02:26 PM   #9
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Quote:
Originally Posted by Nixon View Post
You nailed it on #1. Pandering season has reached full stride.


Solving the energy/oil/gas cost problem in the US is just way too big a topic for me to tackle... I'm just one dead president.
If you were still kicking we'd would have these problems and the tapes to prove it.
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      04-30-2008, 02:28 PM   #10
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Quote:
Originally Posted by Tijuana View Post
What if I want to pick all three of the "No" choices?
Create 2 more fake identities under your children's names and use them to vote, like Burger King Vice President Stephen Grover did?

http://www.news-press.com/apps/pbcs....804280351/1075


Just kidding :biggrin:
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      05-11-2008, 01:13 AM   #11
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Anything for a vote. If there lips are moving.......
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      05-11-2008, 02:19 PM   #12
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Its true, refiners dont want to make any new refineries due to the extremely stringent regulations.....and the threat of future regulations. I have worked with some of these regs, they are very stringent, unreasonable. Almost impossible to comply. All of the refineries are grandfathered in to the old regs right now. Not to mention that regulations on drilling and nuclear power are causing trouble. China will build at least 15 nuclear plants in the next 10 years and we are sitting on our ass. All the companies are scared to invest in anything due to fear of regulation. There is virtually no investment in alternative fuels etc because there is no regulation.
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      05-12-2008, 11:18 AM   #13
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Suspending the gas tax would not work at all. I was going to type something up but it would have been exactly like what Nixon wrote in the first post. Kudos to him. Nicely done.
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      05-12-2008, 11:35 AM   #14
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Just build more and drill more here, we found a great spot, in the US, back in the clinton days but those idiots decided against drilling. The topic has recently been brought up again, but now the excuse is that it will take to long to build, where if we would have started when it was first brought up, we wouldnt be where we are now. That and the stupid restrictions on the nuclear plants is out of hand, is it france that even uses one for their power? and not even the US is willing to now, or at least here in CA. When need to get these enviro wackos out of the leading positions.
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