"Gas Tax Vacation" is it a good idea?

['97ventureowner]

There is current discussions about dropping the federal tax on gas ( roughly 18.4 cents a gallon) on fuel purchases made between Memorial Day and Labor Day to make it easier on summer travelers.
But is this a good idea and will it really do any good? Some states including my state, NY, have also considered dropping their state tax on gas for the same time period, but so far have decided not to because of a large potential decrease in much needed revenues to fund highway projects. Many projects in this state are already underfunded and in trouble, and removing the gas tax for the summer will put those projects in further peril. I also feel that if the Federal government drops the gas tax for the summer , similar issues could result as a decrease in funding that the gas tax pays for could result.
I also feel that even if the gas tax is lifted just for the summer months that would not stop the oil companies from taking advantage and raise prices even more.
What are your feelings concerning this issue? I heard one report on the national news tonight that for the average driver, dropping the federal gas tax would only equate to a savings of roughly .30 cents a day. Not much when you look at it that way.

[BNaylor]

Originally Posted by '97ventureowner

I also feel that even if the gas tax is lifted just for the summer months that would not stop the oil companies from taking advantage and raise prices even more.

Technically just a bandaid fix but most likely won't make any difference.

That is the part I agree with. But threaten them or hit them up with a punitive windfall profits penalty and maybe they will think twice about taking advantage.

Also, the government should release oil from the strategic reserves.

['97ventureowner]

Originally Posted by BNaylor

Also, the government should release oil from the strategic reserves.

Although I have heard that term over the past couple of decades or so, I don't really know all the facts about these strategic reserves. i understand why we have them but for how long would we see any benefit if oil is released from these reserves? To me it doesn't seem like it would have that large of an impact and to use a term you have already, merely a "band aid effect".How much would be released and how long would that last us. Also wouldn't that put the country in jeopardy if a large percentage of the reserves is released, and something should happen where we would need it in an emergency?

[BNaylor]

From what I recall it is used in the event of a real big national emergency or for the big war. IMO even if 50% was released it would be no big deal since it is continually resupplied. Technically this country is in a state of emergency. Maybe we should declare war on OPEC.

['97ventureowner]

Originally Posted by BNaylor

From what I recall it is used in the event of a real big national emergency or for the big war. IMO even if 50% was released it would be no big deal since it is continually resupplied. Technically this country is in a state of emergency. Maybe we should declare war on OPEC.

Do you think that would do much good? Seeing as we only get just over 50% of our imported oil from them.

[BNaylor]

Only??

Just kidding but we could declare an oil war on two fronts not just against OPEC but against Mexico directly. After all when they nationalized the oil back before WWII all they did was steal everything from the American and European oil companies. A lot of our oil refined in my neck of the woods in West Texas is Mexican Pemex.

Of course many will say Iraq is another oil war front but evidently that didn't do much good.

[ericn1300]

The Federal gas tax is 18.4 cents a gallon. At $4 a gallon that would be 4%. Anybody can cut their consumption by 4% easy with out robbing our highway districts of the funds they need. I don't know about the roads in your area but ours need some serious work.

Actually one of our state reps had the same idea about state gas taxes way back in 2005 and this is the link to the op-ed piece I wrote for the paper then on this subject: http://www.boiseweekly.com/gyrobase/...d=oid%3A155199

[Damien]

I'm thinking we raise general taxes on everyone and gas drops. Sounds off but heck why not? You'll be paying it out anyhow, might as well see what it does.

Another idea is stop raising the prices. There really is no need. There is plenty of oil for centuries let's tap our own or take over the middle east or wherever. no one cares...except them.

[ericn1300]

And now Clinton has suggested making the oil companies pay the tax instead. What a laugh. Oil companies don't pay taxes, they just collect the taxes by including them in the price of gas and passing your money to the government.

[72chevelleOhio]

Dropping the gas tax is a good example of robbing peter to pay paul..

Some people are making a lot of money off the cost of oil. I personally would like to see the bottom fall out. (think "trading places" starring Eddie Murphy)
I wonder if they would have the guts to tell a sob story about how they went bankrupt??

[BNaylor]

Regardless of everyone's views on the federal excise and state taxes on gas states have other ways of making money to repair roads, bridges and general maintenance. For example in Texas the last time I checked I thought auto registration and vehicle state sales tax was supposed to go to road and bridge maintenance.

The bottom line in this country is we are taxed on everything and way too much.

Also, the way municipalities manage traffic lights is an abortion. Probably the biggest waste of gas in this country next to people that do not conserve or drive gas guzzlers.

[carczar]

I think in order for us to do away with the high prices at the pump, we need to get to the root of the problem. I personally feel that it is the lobbyists and corrupt politicians. The oil companies send their lobbyist out to pay off the politicians indirectly, so of course they have no interest in stopping this thievery. It's disgusting!

['97ventureowner]

Originally Posted by BNaylor

Also, the way municipalities manage traffic lights is an abortion. Probably the biggest waste of gas in this country next to people that do not conserve or drive gas guzzlers.

To add to that topic, the "Right on Red" rule needs to be revisited and applied to more intersections where it could decrease congestion and "wait time" at certain intersections.
I'm also think that many intersections should be re-evaluated for traffic flow and at off peak hours, (i.e night hours, or after rush hours,) a flashing red or yellow light mat be sufficient enough to control traffic flow. Too many times I've sat at a red light late at night while there is no other traffic in the vicinity.

[BNaylor]

Originally Posted by '97ventureowner

Too many times I've sat at a red light late at night while there is no other traffic in the vicinity.

Tell me about it Tom. Really sucks too. With technology the way it is today and computer automation to include communications systems you'd figure more cities and towns would look at that issue seriously. Just a sign of government at all levels in this country not doing it job and contributing to the crisis we have today.

Back to the subject of gasoline taxes Texas hits us up with 20 cents per gallon by itself so sum it with the 18% federal that is $38 cents per gallon in taxes.

As I mentioned earlier states have other ways to get road maintenance and transportation funds. So if you look at it closely we are getting taxed needlessly and to death. For example in Texas $10 of the annual vehicle registration fee is used for bridge and road maintenance. Also, property and sales taxes (aka sales and use tax) are used.

Berkeley ITS Department ran a Texas study several years ago that still holds true today except the revenues are much higher due to the population growth, amount of vehicles on the road and higher taxes to include property we now pay. See link below.

Click here

Also, remember the old 55 mph speed limit which a lot of us remember and experienced. Don't be surprised if this issue isn't revisited. For 21 years, from 1974-1995, the speed limit was 55 mph in response to the mideast oil crisis back then.

[xeroinfinity]

Oil companies are getting rich off fuel , way to rich, I declare it a monopoly ! We should all strike !

Thier's no real reason fuel should cost so much, it's not like it's "better fuel". I see dozens of grain trucks heading to the bio fuel plants every day, thier cant be a shortage.

I've just quit driving excessively, probley cut vacations closer to home..... so tax that uncle sam!





ps- thanks for the headers G.W.B. !