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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (96340)	8/16/2008 4:41:47 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 110194

Looking at the American consumer/guzzler it may just take a gas tax but the problem I see is what are they going to do with the money. Oil prices would drop so I don't think a fuel oil for the poor is a good idea. Nothing long term to get us off foreign oil, an administrative nightmare and reeks of socialism. Maybe some mass transit but either reduce taxes elsewhere or somehow promote alternatives and drilling would be my choices. Your solutions look like a compilation of Obamas helicopter drop and Gores Mass Transit.

To: patron_anejo_por_favor who wrote (96340)	8/17/2008 9:54:58 PM
From: Oblomov	Read Replies (1) \| Respond to of 110194

No...The tax should be variable. It should be $6/gal less the raw cost of gasoline per gallon (or whatever. I picked $6 arbitrarily). There would be two advantages of this method: 1) gasoline cost per gallon would be fixed at $6/gallon or so. C osts would be more predictable to households and businesses. 2)Since the government would maximize its revenue by lowering the raw cost of gasoline, it would have an incentive to lower the raw cost of gasoline. At present, since the federal tax (and most states' taxes) is an excise tax that is a %age of the raw cost, the government has an incentive to keep the raw cost high.