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

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  1. Pingback: CuriousCat: Gas Price Actually Reducing Driving

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