Curious Cat Management Improvement Blog: Deming, lean thinking, innovation, customer focus, continual improvement, six sigma.
June 29, 2006
Gas Tax

An Increase in the Gas Tax Would Hurt Consumers and Slow the Economy

Gross Domestic Product would decline by $6.5 billion per year, in real terms, from 2005 to 2014. In other words, this $131 billion in government revenues would shrink the economy by $65.5 billion.

There would be, on average, 37,000 fewer job opportunities each year. That works out to one lost job for every $351,000 in new taxes, which is equal to 11 years of work at average yearly wages.

Sure sounds bad. This was written in 2004 opposing a 5.45 cent increase in the gas tax. Of course gas price have gone up more than 10 times that amount. However those increased prices (which have the same negative impact of a tax increase go to foreign producers and the oil companies instead of the taxpayers. We would have been better off increasing the gas tax 50 cents a gallon and cutting the huge deficit instead of accepting such arguments.

Or just cut the gas tax: Why Congress Should Cut the Gas Tax, 2000

Gas Tax Now! by N. Gregory Mankiw, 1999.

Many members of Congress have been pushing for a cut in income taxes, but they’ve been unsure how to pay for it. Fortunately, I’ve figured out an answer: with a tax increase. Let’s cut income taxes by 10% and finance it with a 50-cent-per-gallon hike in the gasoline tax.

That certainly is a better idea than what was done. Cut taxes and just have the next guy figure out how to pay for it (which will have to be by taxing the children and grandchildren of those granted tax cuts). When the government was projected to pay down the debt it had accumulated (the state when President Clinton left office) that was claimed to be taking money from citizens that was “theirs.” But piling debt on the children of the citizens that taxes are cut for is fine?

You have to pay for government somehow. Cutting the roads to nowhere and other items is fine with me. Just actual pass a balanced budget, like during the Clinton Administration (or even one that is close).

Opposing gas taxes because someone has to pay them, while raising the debt which hurts everyone that will have to fund those debts is not a sensible plan. Voting against pork spending so you don’t need to raise gas tax or pass on you unpaid obligations to the future is fine. Or deciding you would rather tax income than gas is another perfectly fine choice. There are good reasons to tax gas but the decision to prefer taxing income to taxing gas use is certainly a fair choice. Saying you are against taxes and increasing spending, on the other hand is not a fair choice.

Higher Gas Tax? Smart Move by Christopher Farrell

Estate tax repeal

One Response to “Gas Tax”

  1. CuriousCat: Gas Price Actually Reducing Driving Says:

    Gas demand is very inelastic (or gas prices are very elastic): which means demand changes very little as prices increase…

Leave a Reply



Curious Cat Management Improvement Blog © curiouscat.com 2005-2008 powered by WordPress

Internal Links

Author

John Hunter

Categories


Other

Search Blog

Web Search

Management Improvement web search

Recent Comments

  • Christina: I strongly agree with you. Well done for this blog you’re doing a really good job.. Well, being morphed...
  • Matthew: I’m glad that this company is realizing the benefits of manufacturing in the USA. The more Americans...
  • A Sedaris: I agree with Sherry T below that it is all about training and maintaining communication. By and large,...
  • Lauren: Just a philosophical view on this if you like, as the last sentence really struck a chord with me. “One...
  • Zack Katz: Having a wiki open to your business is a great idea. One of the obstacles to team building / team training...
  • Anonymous: Adding capacity is not the solution, at least in areas that are already densly populated. In Hawaii, for...
  • david foster: Maybe what Jeff I is really doing here is distinguishing his own management priorities from those of...
  • Dave Knutson: “Audubon is a Six Sigma quality company focused on Total Quality Management, Continuous...

Archives

June 2006
M T W T F S S
« May   Jul »
 1234
567891011
12131415161718
19202122232425
2627282930