Slams A'Plenty For Senator Pander's Proposed Gas Tax Holiday - CNN/Money

[hatrack]

EDIT

Analysts criticized the proposal for doing little to either stimulate the economy or lower gas prices, and say it could potentially leave roads in disrepair. "It's a quick fix for people who believe cheap gas is their birthright," said Tom Kloza, chief oil analyst at the Oil Price Information Service, a research firm. "It's not a prudent thing to do."

Kloza said the amount of money motorists would save would do little to stimulate economic growth, and said the revenue from the gas tax is much needed for road repairs. He also said reducing demand is one of the best ways of lowering gas prices, and suspending the gas tax may encourage motorists to drive more - a move that would certainly benefit the oil companies. "Look, somewhere down the road you have to use less," said Kloza. "As painful as it might be, higher prices do sway behavior toward a more energy disciplined America."

A House Democratic staffer also criticized the proposal, largely on the grounds that state transportation departments may not be able to cover the loss in funding and construction projects would be suspended.

"If you turn that off, a lot of construction projects won't take place and a lot of people will be put out of work," said Jim Berard, a spokesman for the House Transportation and Infrastructure Committee.

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http://money.cnn.com/2008/04/15/news/economy/mccain_gas/index.htm

[TheWraith]

1. There IS a fast and easy way to cut the price of gas in half, or better.

Ban commodity trading of oil, and implement windfall profit caps on the oil industry. We don't need them making $15 billion dollars a month on the backs of American drivers.

[aquart]

3. How do we ban commodity trading of oil?

We can't control overseas oil. How would we do it? (I never even imagined this was an option.)

[TheWraith]

4. No, but we can control what happens in US commodity markets.

A huge amount of that money isn't being made in Stockholm, it's being made on the NYMEX. Take that $10 billion a quarter Exxon is making: that's not money that's going to overseas oil producers, it's going to the middlement. That's where the money is being made.

Further, implementing either caps or taxes on windfall profits from oil and gas sales, then sending the results back to the customers, would provide either a roadblock, or at least a disincentive, to their continued robber-baron attitude. Say, for instance, what Byron Dorgan proposed: a 50% tax on the value of a barrel of oil over $40, then send the proceeds to gas buyers. Effectively, an immediate price drop from $110 to $75 a barrel. Still not good, but better.

As a last resort, if they refuse to deal, nationalize the oil industry.

[aquart]

7. Thanks for responding.

Commodity markets make my head spin.

Of course, nationalize would be my first choice because energy is too vital to the national economy and security (always stick that in) to be in private and greedy hands.

And then there is my sister who takes the position that we should sell off every bit of it we have left, and THEN nationalize the lot of it. Got a mean streak, my sister.

[acmavm]

2. McCain is an idiot. I'm damn certain he thought he had a winner

of an idea here.

I notice he didn't say a damn thing about the oil companies doing without.

[Justitia]

5. Either he's a moran or he thinks we are morons. I'm betting both. -eom

[sinkingfeeling]

6. What? At $.18 a gallon, I would 'save' an extra $2.16 every six weeks! Surly, that would stimulate

the economy!