Oil and the economy

And, the idea that only gas taxes can pay for roads is ridiculous too.

Money is fungible. What, you think we wouldn't be funding education without the lottery?

Roads benefit everyone. Remember, "you didn't build that?"

Cutting gas taxes doesn't mean we can't build and/or maintain roads. It doesn't even mean overall tax revenue would go down. Lower prices at the pump is what's spurred recent economic gains. And, it's built confidence. Lowering gas taxes would only do more of the same.

It would also cut what's essentially a tax on goods at every point along the supply chain. Cutting gas and jet fuel prices lowers the cost to ship goods.

 

And it would be cheaper to produce ethanol

 

38 cents (18 federal, 20 state) per gallon, give or take a few tenths. I've posted the number before.

The point I was making is the gas tax isn't as painful as other sources of revenue are because it's not on the receipt. Raising it a nickel when gas is $1.89 won't shock the economy. The beaten masses are already accustomed to prices spiking overnight "just because."

 

Lots of folks have no idea how much they're paying in gas taxes. It's not on the receipt, or posted at the pump.

Some locals have a federal, state, and city tax. And, in some places, it's a percentage of the cost, and not a fixed amount. (Those places are taking a hit right now, after living high on the hog.)

But, just because it's not as noticeable, doesn't mean it's not painful. It's still taking money out of people's pockets and/or causing them to drive less. Neither of those things is good for the economy.

And, at $1.89, isn't a 25% tax a little exorbitant?

 

CT .65
NJ .32
both include the .18 Fed tx

 

What you're really saying is that you think it's easier to fool people with a gas tax, not that it isn't painful. In fact, it would be most painful to lower- and middle-income people.

 

The gas tax is one that Jonathan Gruber must love.

 

Decent roads and bridges benefit everyone, even those who don't drive. It's called infrastructure.

 

The gas tax hits waitresses in State College, PA hard.

 

Not the best example but always loved the way he drawl'd out the word "infrastructure" ...

 

One of the good things that Christie/ State legislature does for the middle class of NJ is keep the gas tax low
and also make it against the law to pump your own gas.

 

And raising them wouldn't necessarily mean road construction/maintenance expenditures would increase, either.