Comments on: A Modest Proposal – More (Gas) Taxes!

By: Tax Incidence – Don’t Quit Your Day Job

Tax Incidence – Don’t Quit Your Day Job — Mon, 16 Aug 2010 19:39:44 +0000

[...] take a real world example. A previous article by colleague Paul Kamp argued for higher gas taxes. Gas prices are an inelastic good. Consumption [...]

By: Carnival of Pecuniary Delights #25 – Stephen Covey Edition

Carnival of Pecuniary Delights #25 – Stephen Covey Edition — Thu, 24 Sep 2009 11:33:33 +0000

[...] Don’t Quit Your Day Job suggests A Modest Proposal – More (Gas) Taxes! [...]

By: CameronDaniels

CameronDaniels — Fri, 26 Jun 2009 13:40:43 +0000

One of the keys, however, is determining how much the gas tax actually curbs consumption. Saying that raising the gas tax decreases gas usage is not enough. Certainly, if a 1% increase in taxes causes a 10% decrease in gas usage, then it is good. But if a 50% increase in taxes corresponds to a 0.2% decrease, would it then be good? I am not sure that anybody can exactly give the answer, but what is clear is that the extent of the dissuaded consumption is very important to the discussion.

By: PKamp3

PKamp3 — Thu, 25 Jun 2009 05:28:10 +0000

If I said, “Saudi Arabia is our tactical ally who we are only using for their oil”, would everything be settled?

If we asked our President, straight up, “Is Saudi Arabia our ally?”, he would undoubtedly say, “yes”. Still, I can see your point. The imposition of the gas tax (again, *ASSUMING* all of the things I wrote in the above article!) still makes sense regardless of which word I use to describe Saudi Arabia, agreed?

By: John R

John R — Thu, 25 Jun 2009 02:42:26 +0000

Agree with what you’re saying. But comparing three hundred years of history with France in regard to our Saudi alliance is fool-hardy. Our relationship with SA is based on oil. We need their oil. They need our money. This is like comparing a life-long relationship with a good friend with someone you just started having casual sex. Once the orgasms dry up…there isn’t much there to stay afloat. I think my basic problem is with your word “safely”. And not just because I hate adverbs…

By: PKamp3

PKamp3 — Thu, 25 Jun 2009 02:30:26 +0000

It’s important to draw a distinction between the actions of citizens of a country and the government of a country. I would argue that Saudi Arabia is even an important ally in the fight against terror now that weaknesses in their surveillance have been exposed.

For your second point, reference the country of France. Say what you want about France and their citizens, (they generally aren’t the biggest USA fans) but I would also consider them an ally.

By: John R

John R — Mon, 22 Jun 2009 23:20:23 +0000

One issue: Saudi Arabia can be “safely classified” as an ally? Please double-check where the 9/11 hi-jackers, not to mention Bin Laden himself, came from. Regardless of what the Crown Prince thinks of us, (his best customers) the people of SA hate us.

By: PKamp3

PKamp3 — Sat, 13 Jun 2009 22:28:12 +0000

Completely agree. Political cover would be needed to accomplish this sort of a goal. Perhaps a tax reduction in another area (income?) could be used as political cover to enact this sort of a change.

The other issue, politically, is gas taxes are seen as mildly regressive. Since people on the lower end of the scale spend more of their salary on gas and transportation, gas price increases are said to hit those with lower incomes harder. Again, an income tax reduction could be used strategically to dampen those criticisms.

By: John R

John R — Wed, 10 Jun 2009 04:45:55 +0000

The only problem with this issue is that it will take a politician with the power to get it done and the lack of ego to commit career suicide. Any idea of raising the gas tax where I live (Massachusetts) is always met with rage and a borderline uprising. People are short-sighted and can only remember the state screwing them out of billions during the big dig, which we’re STILL paying for. This is the right thing to do, but may be politically impossible.