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Is the Gas Tax Already a Dead Horse?
As I'm writing this, the clock is turning over on the West Coast, and it's already June 18th back East. Summer's practically here, and no gas tax relief has arrived. This was always a frivolous and pandering piece of legislation, and Americans' recognition of that candyman politics, along with a general knowledge of arithmetic, made most of them rightly cynical about an 18.4c tax break on a gallon of gas whose price has increased about 60c/gal since legislation was first introduced. Unfortunately, there was no tidal wave of public support to sweep this plan through Congress.
John McCain renewed his call early last week, a few times. Sam Brownback even weighed in. Still 7, 8, 10 days later, no tidal wave of support arose.
Now that Memorial Day is long past, and summer is only 3 or 4 days away, I think we can safely say that the clock has run out on this legislation, especially since the general public sees no end in sight to the price increases, but a definite ceiling AND sunset on the relief that the tax break can give to them. A hundred hours or less till summer begins. Isn't it too late for Methuselah?
Would their side like to admit defeat, please?
Comments (20)
Let's talk about CA where the price of gas is getting mighty close to $5/gal...
http://www.theoildrum.com/files/08-06-09_four_dollar_gas.png
Happy motoring!
June 18, 2008 4:18 AM | Reply | Permalink
It's really hard to find under $4.50 around Los Angeles. I saw 1 Arco at $4.49 in Los Angeles on Monday night (Olympic & La Brea); and it's been under $4.50 at filling stations within 3-5 miles of the refineries down in OC. And that's about it.
June 18, 2008 5:20 AM | Reply | Permalink
Of course, one of the prime reasons for the high prices is that CA taxes the crap out of gas... too bad the rest of the country doesn't.
Which brings us back to your original point...
June 18, 2008 11:50 AM | Reply | Permalink
Connecticut too. We're right behind ya.
June 18, 2008 10:13 AM | Reply | Permalink
I remember crossing the CT/MA boarder and finding quite a differential in gas prices... hence the gas lines on 84 near the MA side of the border...
June 18, 2008 11:49 AM | Reply | Permalink
also, you should check out my reply here on that other recent energy blog from GreenDreams; it's about the hydrogen from starch article..
summing it up - water is a reactant, not a product, (hydrogen is a product, which was sorta the point of the car - it strips its H2 fuel from the starch as it goes, it doesn't burn starch), so it's not a combustion reaction -- so using the phrase "burn hydrocarbons" wasn't quite accurrate. also, since the starch is plant-based, it's theoretically carbon neutral to the CO2 that the rxn produces.
June 18, 2008 12:34 PM | Reply | Permalink
n/m just saw yours.
June 18, 2008 12:35 PM | Reply | Permalink
SPQR,
Check out this video:
http://www.youtube.com/watch?v=0YRu6bqKPjM
I know you will find little hear of surprise, nor should anyone who follows some of the TPM posts by people like DF, you, Donal, or myself, but for all those naysayers: be prepared for the shock.
June 18, 2008 4:37 AM | Reply | Permalink
In 2005, I was able to attend Roscoe Bartlett's energy conference, featuring Dr. Kenneth Deffeyes,
Matthew Simmons, and Richard Heinberg. Events have largely unfolded as they were predicting then. Americans are still looking for replacement fuels to maintain the suburban lifestyle.
Simmons notes that Americans are spending 4% of their income on fuel. Actually spending varies from 2% in urban areas to 16% in the rural areas, as shown in this map:
http://www.theoildrum.com/node/4125?nocomments
BTW, if you look at the poster names of that and related videos, ProfGoose is one of the founders of The Oil Drum while Leanan and JoulesBurn are regulars there.
June 18, 2008 7:49 AM | Reply | Permalink
Donal, read my first comment on this blog. ;-)
In Simmons defense, he is taking an average, obviously. Sort of like saying gas is finally above $4/gal when in CA, we've lived with that number for months now.
Deffeyes's 2007 book, Beyond Oil: The View from Hubbert's Peak, is excellent and should be required reading for everyone. In it, he goes item by item showing how the so-called "replacements" for oil won't be replacements (e.g. shales, etc.)
June 18, 2008 11:54 AM | Reply | Permalink
some reasons why $650/bbl oil is a realistic value projection into the future:
1) The dollar's seemingly inexorable inflation.
2) Market manipulation: speculation and asset protection for large asset holders (as a result of #1) puts a lot of money into the commodities markets - and crude oil is now and forever a hot commodity.
3) Economic growth rates of China & India. Avg'ing 8%+/yr, in the two most populous countries on earth.
4) Speculation can also force the price to bump up just slightly to hover around $666, and the necessary adjustments by some big players could make it stay there for a long period of time. This will (wink) undoubtedly inflame Islamo-Judeo-Christian tensions throughout the Middle East and America. Stateside, rightwing evangelical Christians, who will not fail to interpret this as the fulfillment of their ancient prophecy, will rush to beat the drums of war, till frenzied masses take to the streets crying out "Blood for Oil! Blood for Oil!" The Armageddon War will begin, and those same Christians-in-name-only will sit smugly thinking, "HA! See! Our Book's prophecy was right! I guess that means we win! What do you think Heaven will be like? I can't wait for the Rapture." It will be more like Hell (TM), new and improved, now with radiation.
Or maybe just the first 3. I dunno. BTW, where can I find out how credible Simmons is on this topic? Not that I don't believe him, I just want to know a little more about him.
June 18, 2008 12:25 PM | Reply | Permalink
n/m my last sentence, I just read Donal's comment. I'll find out on my own.
June 18, 2008 12:30 PM | Reply | Permalink
I do vet before posting other sources, you know. ;-)
Simmons is incredibly credible. As are some of the other people Donal mentions.
If you haven't gone through AMERICAN THEOCRACY by Kevin Phillips yet, I suggest you do so. It is a socio-political analysis of oil, debt, and religion in America. Disturbing reading.
June 18, 2008 3:02 PM | Reply | Permalink
A pandering we will go! A pandering we will go! Hi-ho the merry-o a pandering we will go!
June 18, 2008 5:48 AM | Reply | Permalink
Polls show that people like the .18 (cent) tax relief. For the working poor, a discount of .18 (cent) per gallon would be very helpful to them. No, it isn't a long term fix, it is a short term fix to help those for whom the rising price of food and other essentials aren't keeping pace with inflation and a depression in pay packets.
People who work minimum wage jobs are especially hard hit with the hike in gasoline prices.
June 18, 2008 8:36 AM | Reply | Permalink
My complaint with the gas tax proposal was never that I wouldn't love 18 cents off every gallon. It would definitely help my budget. My complaint was that it was a pointless proposal because I knew it would never get passed through Congress and signed into law by Bush in the thirty-some days between when they started talking about it and Memorial Day.
June 18, 2008 10:15 AM | Reply | Permalink
GWB just gave me $300. McCain and/or HRC's plan would've saved me about $30-60 over the summer.
Who helped the working class, minimum wage workers, and the poor more? Who's economic relief legislation actually passed? Not that I've ever agreed with any of GWB's economic policies, but still.
Just sayin.
June 18, 2008 11:45 AM | Reply | Permalink
Yes, and then it will be the blue collar workers, then the white collar workers, and finally the filthy rich. If it makes you feel any better, to quote, "no one gets out of here alive".
The point is that there will be huge suffering as a result of our squandering of oil over the past 100 years, and has been exacerbated in the last 20 or so with SUVs and truck sales. The suffering will be across the boards, but will start with the poor and work it's way up.
Here's the good news: everyone, including the poor, will look upon conditions in 2008 as actually being very good.
The Age of Oil is over. And with it, the age of those progressive ideas which you take for granted (liberalism, natural rights, etc.) is well on it's way to being over as well.
Now that should give you pause, BevD.
June 18, 2008 11:59 AM | Reply | Permalink
A Gas Tax holiday is like putting a band-aid on a compound fracture. In other words...stupid and futile!
June 18, 2008 3:12 PM | Reply | Permalink
damn it all
July 2, 2008 4:06 AM | Reply | Permalink
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