Green | December 31, 2008 | 5 comments

"Raise The Gas Tax" Argues Thomas Friedman Of "The New York Times"

"The New York Times"
Thomas L. Friedman

"How many times do we have to see this play before we admit that it always ends the same way?

Which play? The one where gasoline prices go up, pressure rises for more fuel-efficient cars, then gasoline prices fall and the pressure for low-mileage vehicles vanishes, consumers stop buying those cars, the oil producers celebrate, we remain addicted to oil and prices gradually go up again, petro-dictators get rich, we lose. I’ve already seen this play three times in my life. Trust me: It always ends the same way — badly.

The two most important rules about energy innovation are: 1) Price matters — when prices go up people change their habits. 2) You need a systemic approach. It makes no sense for Congress to pump $13.4 billion into bailing out Detroit — and demand that the auto companies use this cash to make more fuel-efficient cars — and then do nothing to shape consumer behavior with a gas tax so more Americans will want to buy those cars. As long as gas is cheap, people will go out and buy used S.U.V.’s and Hummers."

You can read the full article "Win, Win, Win, Win, Win ..." by Thomas L. Friedman at "The New York Times" link. I think that he is one hundred percent right and that the United States will not become more energy efficient until it enacts a substantial tax on gasoline. ... However, will that ever happen?
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5 comments // "Raise The Gas Tax" Argues Thomas Friedman Of "The New York Times"

  • RCS
    • 0
      RCS  
    • I agree with both with the idea to give a credit to people for buying more fuel efficient vehicles, and with the one for investing in new alternative energy, with the gas tax revenues. In addition, some of this money could be used to pay for the middle-class tax breaks that President-Elect Barack Obama has called for.

    • 3 years ago
  • Commentor
    • 0
      Commentor  
    • I only support this if the funds collected are used to stabilize the price - the tax should be designed to automatically reduce as the price of oil goes up ... It could also be that the extra tax goes to buy oil for an oil reserve and that oil is then sent back into the system as the price increases leveling supply.

      I prefer the former to the latter however.

      The money collected from this tax should only be used to stabilize the price and allow people a credit to buy new vehicles that meet energy efficiency requirements

    • 3 years ago
  • unimatrix0
    • 0
      unimatrix0  
    • Yes we should raise the tax immediately while the price is low. We should have raised it a long time ago. I would say .25 - .50$ a gallon. Use the revenues to invest in alternative energy sources.

    • 3 years ago
  • cantucwearebrothers
  • RCS
    • 0
      RCS  
    • This strikes me as something that has to be done, but that nobody wants to admit has to be done. Too many people on both the right and the left want the American people to believe that they can always get something for nothing and that they will never have to pay the price for anything.

    • 3 years ago
RCS
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