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DEL.ICIO.USMake $4 gas permanent?
The Atlanta Journal-Constitution
Atlanta economist Arnie Dill advocates more oil exploration. And he opposes hitting oil companies with higher taxes. But he also advocates more taxes on gasoline if prices drop below $4. Keeping prices at at least $4 a gallon will make sure we keep fighting our oil addiction, he writes.
“Since oil prices have a volatile history, they might drop in the future and tempt us to fall off the wagon again,” writes Dill. “Therefore, the government needs to set a $4 inflation-adjusted floor under gas prices by fully taxing any decline in market prices below that level. The gas tax proceeds would fund cuts in payroll and income taxes, especially for those with lower incomes, and beef up EPA policing of expanded energy production. “
What do you think of this idea? Can we trust ourselves with lower prices at the pump or would we just revert to our old fuel-hogging ways?
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Comments
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By CJ
June 26, 2008 7:54 AM | Link to this
Gas is $4 a gallon for all of the wrong reasons. That much is certain.
At the same time, it is sparking a new interest in finding alternative fuels that are more healthy for our environment. One sniff of our “Code Red Smog” is enough justification for eliminating pollution. I have to admit, even for a Democrat, I admire McCain’s “X Prize” for finding a cheaper, better battery powered car. It’s about time! Back in the old days of the Model T, they had cars that ran on steam. If it wasn’t for oil money greed, we would have cars running on ocean water by now.
By RU4real
June 26, 2008 7:59 AM | Link to this
Crap is king…who writes this dribble?
Why not bring water to $5. a gallon, maybe we’ll fight our thirst addiction.
How about lettuce at $10. a head, maybe we’ll fight our hunger addiction.
By What a hump
June 26, 2008 8:01 AM | Link to this
at least Dill has the right last name as in DILLWEED!
By Christopher
June 26, 2008 8:16 AM | Link to this
I agree with Krauthammer’s letter that he posted here in the AJC a few weeks ago. That if we had a higher tax years ago we could have encouraged conservation, reduced payroll taxes, plus built a better system of infrastructure. Here is an idea I have. If the price does go down and you raise taxes then you can give transit users, as well as alternate fuel vehicle drivers, or even people who use some sort of alternative energy at home, a card with which they can earn points to get a motor fuel tax break based on their efforts to conserve. Basically a points and rewards system.
By less taxes, what a JOKE
June 26, 2008 8:19 AM | Link to this
Oh yeah, a cut in payorll and income taxes? Like GA 400 toll? Remember, they were going to stop collecting the toll once the work was paid for. How about the Spanish War phone tax? It only took 100 years to finally get that one off the phone bill……PLEASE!
By Maniac is accurate
June 26, 2008 8:34 AM | Link to this
How much does Arnie make? Takes a jackleg punk to suggest punishing working people like that. The wake up call has come and it’s time for leaders to demand we do all that is necessary to break our oil addiction.
By willie
June 26, 2008 8:42 AM | Link to this
Sounds like a typical liberal mind set. As long as they get their way, who cares about anyone else. Everything is more important than the Amercian way of life. I will be very happy to see a liberal president and a liberal congress. I will watch the end of the great experiment and read all the blogs telling us to become more like Europe. The stock market will drop to 3000 and the average American will become malnurished even to their demise. Then the liberals will lead a take over of the constitution and we will have our first KING. Finally, they will pass and enforce attitude laws. Chavez, Castro, and Putin will become our key examples.
However, I want oil, I want it now, I will vote for whom ever gets it for me….at a cheap price!!
By Copyleft
June 26, 2008 8:43 AM | Link to this
RU4, you really see no difference between food, water, and oil? You consider them all equally “indispensable and utterly necessary”?
That’s just sad.
By Get Real
June 26, 2008 9:01 AM | Link to this
When has the price of gas ever dropped in the last 10 years?? The price of oil could drop $50 and gas at the pump would stay the same. Thats what happens when you let the companies regulate themselves.
By zeke
June 26, 2008 9:12 AM | Link to this
What an idiot!!! The liberals and democrats have for years been trying to force us to pay the same prices as in socialist Europe! The dirty little secret is that Europeans pay the same price as we do for oil and gas, only their socialist leaders add $3 to $5 tax to each gallon!!! Hopefully oil will go back to $20 per barrel and gas back to 70 or 80 cents per gallon so that all the worlds economies including our own will flourish! Yes, oil has become as much of a necessity as food and water! Do you want to go back to tha 1800’s? Do you want to dismantle all our cities and force everyone to live as in tha 1800’s, farming? YOU IDIOT! Your agenda is as Al Gore! Destroy the American dream!!!!!!
By RU4Real
June 26, 2008 10:28 AM | Link to this
Copyleft, NO I don’t…maybe I should have used ones YOU can understand like Starbuck coffee at $20. a cup and a bike, to share the road, at $1000.
By theprogressivebigot
June 26, 2008 10:43 AM | Link to this
Fall off the wagon? What wagon!!?? Oh….., you mean that wagon all the poor people are riding now.
Yeah! Keep them on the wagon!!
By GIL
June 26, 2008 10:47 AM | Link to this
The longer the price stays high the more everyone grows acustom to it. People adjust there way of life and before long we will be doing all the same things we used to do. It won’t help anything.
By Two Wheels Good
June 26, 2008 10:59 AM | Link to this
Much as I appreciate the positive effects of high gas prices (conservation, efficiency, reassessment) I can’t support artificial price supports to keep it high. If current gas prices are a bubble caused by speculation and capped supply, market forces will eventually enforce a correction, like they have in housing and the stock market.
But if indeed, demand continues to outstrip supply (and banning drilling in America will certainly assure that), then prices will remain high and well, that would be a natural and healthy thing. Get used to it.
By Sean O'Dell
June 26, 2008 10:59 AM | Link to this
I don’t know why I should be astonished by the ignorance (not stupidity) of your bloggers regarding Arnie Dill’s opinion column. I believe Dill is right — we are addicted to petroleum, we just don’t know it. We rely on our vehicles, especially in the Atlanta metro, to get us where we want to go, when we want. We don’t rely on public transit — much — because we all want the freedom that the personel vehicle affords us. Guess we’ll all have to adapt and modify our lives a little to deal with high gas prices at the pump — which, in my opinion, won’t modify much over the coming years. Most don’t understand the laws of supply and demand, but we sure know how to losen our opinions at others, whether we agree or not — or whether we understand or not.
By Fred
June 26, 2008 11:06 AM | Link to this
Get Real, gas prices fell from $2.40 to below $2 a gallon at the beginning of 2006. Gas prices were edging down below $2.70/gal from $3 before the current run up started. Commodities rise and fall and always will. Dial back the conspiracy and get real yourself.
By Freemarket
June 26, 2008 11:11 AM | Link to this
Gas should be sold at a free market price but we don’t have a free market we have a cartel, OPEC, manipulating the price for political reasons. With demand only going to increase due to industrialization of China and other up and coming nations and continued political instability in oil producing countries the solution is clear. We need to drill on our own land and sell in the open market. Don’t nationalize oil just give a small tax break for every gallon sold by the oil companies for use at home.
We should also make it financially feasible to develop all of the alternative energy sources for say 5 years and see which pan out.
Energy conservation efforts should also be encouraged by development of efficient vehicles and alternative sources of fuel.
The punitive part of my plan does not hit Americans but those outside out borders some of who helped caused us this problem and some who despite years of help still refuse to stand on their own.
First we quit selling any weapons to any country but Israel, especially our so called friends the Saudis.
We stop all foreign aid and decrease the payroll taxes for the poor and income taxes for all American workers. If you haven’t learned to stand on you own by now you never will. Go ahead and fall so who ever takes over can have their chance to do better.
We put a heavy tax on all exported food so it will be more profitable to turn it into ethanol than sell it overseas.
Hungry citizens tend to turn on whatever government they have. Once a few million starve to death and the political unrest starts to grow and topple governments, OPEC will see who is truly the boss. Until then let them eat sand.
They may have most of the oil but we have most of the food and better weapons.
It will be painful for us and them but perhaps just perhaps if it’s painful enough all the interest in fairy tales that pass for religion around the world will subside and mankind’s rush to exterminate itself will slow.
By bigviewlongterm
June 26, 2008 11:14 AM | Link to this
Gas should be sold at a free market price but we don’t have a free market we have a cartel, OPEC, manipulating the price for political reasons. With demand only going to increase due to industrialization of China and other up and coming nations and continued political instability in oil producing countries the solution is clear. We need to drill on our own land and sell in the open market. Don’t nationalize oil just give a small tax break for every gallon sold by the oil companies for use at home.
We should also make it financially feasible to develop all of the alternative energy sources for say 5 years and see which pan out.
Energy conservation efforts should also be encouraged by development of efficient vehicles and alternative sources of fuel.
The punitive part of my plan does not hit Americans but those outside out borders some of who helped caused us this problem and some who despite years of help still refuse to stand on their own.
First we quit selling any weapons to any country but Israel, especially our so called friends the Saudis.
We stop all foreign aid and decrease the payroll taxes for the poor and income taxes for all American workers. If you haven’t learned to stand on you own by now you never will. Go ahead and fall so who ever takes over can have their chance to do better.
We put a heavy tax on all exported food so it will be more profitable to turn it into ethanol than sell it overseas.
Hungry citizens tend to turn on whatever government they have. Once a few million starve to death and the political unrest starts to grow and topple governments, OPEC will see who is truly the boss. Until then let them eat sand.
They may have most of the oil but we have most of the food and better weapons.
It will be painful for us and them but perhaps just perhaps if it’s painful enough all the interest in fairy tales that pass for religion around the world will subside and mankind’s rush to exterminate itself will slow.
By Sean is the man
June 26, 2008 11:18 AM | Link to this
Gee Sean, thanks for the bright insightful post…that just settles everything. BTW, you’re free to rely on MARTA all you want….
By MIke
June 26, 2008 11:32 AM | Link to this
The problem with this idea is that all of the money that is taxed over whatever the current market price of gas is will be chewed up by greedy politicians for their own pet projects. Consumers will still feel the pain at the pump because salaries are decreasing and not keeping pace with the cost of living. People are already sacrificing just for gas and thats just to get to work. Taking public transportation is great for those who have access and Marta routes go where they work and live, but if it doesn’t, the average guy is still stuck.
By JK
June 26, 2008 11:55 AM | Link to this
The USA, with 5% of the world population consumes about 25% of the world’s oil production. The law of supply & demand, along with this basic imbalance will make our current state untenable - sooner rather than later. Of course we can postpone the inevitable adjustment to our lifestyles, economy etc. but the longer we do, the more pain the adjustments will cause.
By itsme
June 26, 2008 1:02 PM | Link to this
A couple of things bother me about battery/electric powered cars. 1. Electricity heats/cools and lights homes. Is siphoning electricity from those essential uses to power automobiles really a good idea? 2. What will generate the electricity required for these new cars? Water? Might be a good idea in the Midwest, but not here.
By bobbylee
June 26, 2008 1:33 PM | Link to this
4 buck a gal gas is not a problem if you got plenty of money, don’t have far to drive to work or don’t care about working people.
If the masses unite, they will take what they want, just ask Nick II.
By Carroll Sterne
June 26, 2008 1:43 PM | Link to this
Wonderful column by my friend Arnie Dill. We need people in Washington who take his big view and are brave enough to confront this critical problem. Thanks, Arnie.
By BoneHead
June 26, 2008 1:52 PM | Link to this
Hey JK, you are correct, The USA, with 5% of the world population consumes about 25% of the world’s oil production. So let’s just cut back to where we should be, just how many other countries economies will we destroy? Most of the world depends on the US economy, so just ef’em all let us go into isolationism. Use only what we can produce here, what a grand idea… NOT
By Native Atlantan
June 26, 2008 3:07 PM | Link to this
Where in our constitution does it say that the federal government should tax the American people into a certain type of behavior? When has our elected officials acted responsibly with ANY TAX? No way Mr. Dill!
By Blind Homer
June 26, 2008 3:32 PM | Link to this
100% of the revenue should go to the development of alternative energy sources, not to the poor as tax relief. We need nukes and other alternatives and strong conservation measures and we need them yesterday.
By Bob
June 26, 2008 3:59 PM | Link to this
It’s true, they don’t use much energy in poorer, less developed countries. But most folks I know don’t want to reduce ourselves to that. We need to conserve more, but we also need to use our own reserves in the Gulf and in Alaska.
The Governor of Alaska was on CNN last night. A supporter of tapping our resources in her state, she says we’re only talking about around 2,000 acres… about the size of any major metropolitan city’s airport. She added that the current pipeline is enough to transport the petro to the continental U.S.
By Michael
June 26, 2008 5:33 PM | Link to this
Democrats taxing the poor and middle class again! Obama would kill this country.
By HIGHPOWEREDOFFENSE
June 26, 2008 5:42 PM | Link to this
Idoit Boy must not have a car? WTF? MR. DILL PLEASE GO PLAY IN TRAFFIC IN FRONT OF A SUV WITH A FULL TANK OF $4 A GALLON GAS IN IT!!!!!!!!!!!