How about a hot air tax?
I’m sure you’ve all heard the furor over McCain and Clinton’s proposed moratorium on the gas tax (to my surprise, New York is doing something similar on the state level). Most of the criticism I’ve seen has been economic, saying that it won’t help much. In economic terms, McCain’s version is worse, since it cuts that couple billion dollars from the Highway Trust Fund. Clinton’s proposal avoids that problem by adding a “sin tax” to the gas companies themselves (and if you don’t think that’ll get passed on to consumers, I have a bridge to sell you).
At least one author thinks that the media attentions is overblown, since economically it’s a wash but psychologically it could be a good thing. Unfortunately, I think the real pain would be psychological. It doesn’t actually provide much economic relief (unless you’re a big trucking company, but supposedly the purpose is to ease the pain of the “average American”) and any psychological relief is going to disappear as soon as prices jump up again, which they will at the end of the summer if not sooner.
Even worse is the assumption that gas is a necessity for the average American and that this is something that should be encouraged. If we really want to help out Americans who can’t afford to travel as much, why not dump those billions into our public transportation system? That would drop gas cost to the consumer from $4 a gallon to nothing, much better than dropping to $3.70 a gallon!
Granted, that won’t help everyone, but neither does the gas tax moratorium. And free bus passes for all has the advantage of targeting the working poor who don’t have cars rather than already wealthy companies that rely on trucking.
If you got many more people using public transportation, that would encourage people to continue to use it, since it would break down the stereotype of the “crazy bus rider.” What’s crazy is that people spend more on car insurance than on public transportation! A gas tax moratorium isn’t going to change that. If you want to help the average American, you should be encouraging people to reduce driving rather that subsidizing it.
Sorry, I got a little carried away there. It’s just such a mind-numbingly wrong-headed idea that I can’t believe two major presidential candidates were able to propose it with a straight face.
I encourage you to check out the New York Times’ great interactive graphic that shows where the “average American” spends their money. Right now, the most (by far!) is spent on shelter, either homes or apartments. Americans are also spending less than ever on fresh vegetables (0.5% versus 0.6% for carbonated drinks and snacks). Look it over and let me know where you think the “average American” should get a break!
Linnea said,
May 9, 2008 @ 3:24 am
Zipcar (the “local” carshare) pays the cost of gas for you. While that might encourage driving to some degree, it encourages driving of a singular, shared vehicle. And I think basic insurance is included in the membership. Could be wrong, tho, I don’t really pay attention to contracts.
Andy said,
May 9, 2008 @ 5:14 am
I just applied for a carsharing job in my area. While you don’t pay directly for gas, insurance, repairs or maintenance, it is all part of the fees. For this system it costs $200 a year plus $5 an hour and 20 cents a mile. A little math: for 100 hours (100*5=$500) a year ($200) of driving 20mph average (20*100*.2=$400) would cost about 55 cents a mile ($1100 for 2,000 miles). Not too shabby, especially if you don’t own a car and can use a combo of walking, biking, busing, carsharing, and carpooling.
Jessica said,
May 9, 2008 @ 7:21 pm
I like the Zipcar idea. I saw posters for it while I was at Ft. Meade this summer, and I thought “What an awesome idea! I wish we had something like that in Denver.” I once read of a concept car that folded together in rows like shopping carts do, and you would use them like Zipcars (drop one off at a location, say the grocery store, and then pick up the first one in line when you get out of the store), imagine how much space we could reclaim that was once used for parking lots?
Have you seen this gem yet?
CONFIDENTIAL/URGENT POLITICAL PROPOSAL
Dear Sir
First we must solicit your confidence in this issue. This is by virtue as being utterly confidential and “top secret”.
We are SENATOR HILLARY CLINTON, the wife of the former United States head of state, PRESIDENT BILL CLINTON, and also SENATOR JOHN MCCAIN, friend and associate of current head of state PRESIDENT GEORGE W BUSH. We got your contact through business inquiries as we were searching for contacts of a citizen who can help save our and our family’s political careers since our country has been frustrating us.
We are top officials of the United States Senate Government who are interested in importation of oil into our country with funds that are presently trapped in the FEDERAL TRANSPORTATION TRUST FUND dedicated to improving transportation. We wish to send this money to overseas accounts in the MIDDLE EAST but cannot due to restrictions in Congress Transportation Equity Act requiring that this money must be spent to build roads, bridges and high speed trains.
If you accept we will deliver to your a sum of 30 DOLLARS in the summer 2008 in form of a “GAS TAX HOLIDAY”. You will then deliver this money to accounts of our friends in Middle East by taking it to your nearby gasoline station where they have information to forward the money. Please supply your bank account, social security number, address and your vote in DEMOCRATIC PRIMARIES AND NOVEMBER GENERAL ELECTION.
But bear in mind that this transaction requires absolute confidentiality. Do not visit http://WWW.GASTAXSCAM.COM where there is information about dangers of our proposal and a petition to stop us from this diversion of funds.
PLEASE NOTIFY US URGENTLY OF YOUR ACCEPTANCE OF THIS PROPOSAL
Awaiting your rapid response
Yours truly
SENATORS HILLARY CLINTON AND JOHN MCCAIN
Hilarious!