SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Road Walker who wrote (284077)4/20/2006 4:13:16 PM
From: TimF  Read Replies (1) of 1572724
 
In general I'm not a fan of high energy taxes. Part of the reason is that I suspect increasing them will add to the overall tax burden.

If I was certain that they would result in an equivalent reduction of income or payroll taxes I would have less problem with them. The argument can be made that the taxes just recover costs created by the use of gasoline and other oil products. The argument can also be made that reasonably high gasoline taxes just recover the externality of environmental damage. OTOH any number of activities can be seen as creating some form of externality and trying to apply a proper tax to accurately recover the externality would most likely be impossible, and even the attempt could be harmful. If the program to raise the energy tax would also include eliminating many other special taxes (and narrow tax breaks as well) while cutting income and/or payroll tax rates, I might support the overall program enough to accept the energy tax increase. OTOH I think raising taxes to the point that gasoline would cost $11.70 per gallon would be going to far. Esp. if done quickly but even if done slowly it would be too much.

assuming consumers were expected to foot the entire bill without any sacrifice of profit by industry.

There is no way to implement such a tax without a sacrifice of profit by the industry. Taxes that high will reduce demand which will reduce industry revenue and profit. I don't necessarily mind taking steps with the effect of reducing this profit. I would support reducing or eliminating many of the subsidies the oil industry receives. But I don't support a tax that would drive the economy in to a deep recession and I think $11.70 a gallon gasoline would do that.

Another issue is that $11.70 per gallon for gasoline would reduce demand for gasoline and thus reduce the expected gas or oil tax revenue.

Tim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News