COLLECTIVE MADNESS


“Soft despotism is a term coined by Alexis de Tocqueville describing the state into which a country overrun by "a network of small complicated rules" might degrade. Soft despotism is different from despotism (also called 'hard despotism') in the sense that it is not obvious to the people."

Tuesday, October 03, 2006

"Oil Price Falls. It is Time to Tax it Hard."



The price of oil has dropped below $60 per barrel. Good. Now is the time to tax gasoline. The tax should be such that it stabilizes the price at $3.00 per gallon for regular. The tax increase should be offset by a 10% reduction in income taxes for annual incomes under $125,000. This would accomplish:






  • Reduce the revenue to our enemies and adversaries which include Russia, Iran, and Venezuela.
  • It would encourage the use of more fuel efficient automobiles and heating.
  • It would help nurse the research and production of alternative fuels.
  • The US trade defecit would be reduced.
  • There would be a reduction in green house gases.
  • An oil tariff lowers the world price of oil. Guess who gets hurt.
  • Any such reduction in world oil prices increases long-run real GNP by transferring income from foreign oil producers ( Iran, Russia, Venezuela) to U.S. consumers and the U.S. government.
  • The negative effect on the economy of a one-dollar increase in oil import tariff levels is not as great as the negative effect of a one-dollar increase in the world oil price. The difference lies in the fact that the federal government can, under an oil tariff, use revenues that would otherwise accrue to foreign oil producers for the purposes of deficit reduction, tax reduction in other areas or capital expenditures for the military of infrastructure.
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6 comments:

  1. HabuTue Oct 03, 10:05:00 PM EDT

    America is a land of taxation that was founded to avoid taxation

    Collecting more taxes than is absolutely necessary is legalized robbery. Calvin Coolidge

    I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible. Milton Friedman

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  2. Deuce ☂Tue Oct 03, 10:09:00 PM EDT

    I agree in principal habu, and believe there should be an offfset, but this is about national security. I do appreciate opposing points of view.

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  3. Deuce ☂Tue Oct 03, 10:31:00 PM EDT

    Rufus, i am sympathetic to your opposition, but I would reduce other taxes. the thing i hate most is paying taxes to Iran, Venezuela and russia.

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  4. Deuce ☂Tue Oct 03, 10:38:00 PM EDT

    Then why not offset on the SS taxes?

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  5. Deuce ☂Tue Oct 03, 10:47:00 PM EDT

    You are right there. taxes come and never go and offsets vanish in the night.

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  6. TeresitaTue Oct 03, 10:52:00 PM EDT

    Put a transponder in every vehicle that can be queried by the pump when the driver pumps gas. The transponder will report the miles per gallon the vehicle obtained since the last time gas was purchased. If the vehicle is a Hummer or was driven 80 MPH on the freeway, the reported MPG will be low, and a federal tax will kick in based on how much gas was wasted. If the vehicle is a Dodge Neon or was driven 45 MPH on the freeway, the reported MPG will be high, and a federal rebate will be applied to the gas bill at the point of sale.

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