McCain calls for suspension of fuel taxes

[brien]

John McCain today called for the suspension of the fuel tax from Memorial Day through Labor Day. Every state in the Union should follow up by suspending their state gas tax as well. This would save the American consumer over $.65 cents per gallon. While it isn't a permanent tax cut, it would do well for the average American consumer to save these taxes on both the state and federal level, not to mention a welcome relief for truckers. A small relief is better than no relief. Now, let's see how the Congress and the respective states, dismiss this proposal so they can continue to gouge the American consumer with fuel taxes.


http://abclocal.go.com/wjrt/story?section=news/national_world&id=6082040

http://www.cnbc.com/id/24126284

ALthough McCain is not my choice for President, I do support these calls for taxcuts.

[Osborn F. Enready]

I agree Brien.

I do not support McCain, or any other major party candidate still competitive for party nomination, but I do support the cutting of gas taxes.

It was a terrible source for income for government to begin with.

[DamnYankee]

I heard this today. Very interesting. Also interesting was, I think it was Hillary Diane Rodham Clinton, called for the "Bush Tax Cuts" to be abolished.

Talk about contrast.

[brien]

Actually, McCain is going to intoduce and sponsor this measure in the Senate very soon. Then we will see which members of Congress are sympathetic to high fuel prices, and which ones will continue to gouge the consumer. All of the Congressional members who champion the "middle class" and the "working class", particularly the Presidential candidates, will have a singular opportunity to put their rhetoric in action. We will see, but I don't hold out much hope for the bill's passage.

[Drocket]

This isn't a tax break for consumers, this is an opportunity for the oil companies to gouge even more. This can be rather easily demonstrated as a basic exercise in supply and demand:

The oil companies claim that oil refining is currently at 100% (they're lying, of course, but it doesn't really matter in this case, because an artificially created limit is the same as a real limit.) That means that the amount of gasoline available is fixed, AKA limited supply. When you have a limited supply, the price is determined by the demand. Demand varies based on discriminatory pricing - that is, the higher the price, the less people buy.

If the tax is removed and the price of gas temporarily drops $0.18, the demand for gasoline is going to increase. Because supply is fixed, however, that demand isn't going to be met, which means that the price of gas is going to go up. Oh, say, $0.18 or so, back up to the price that's the equilibrium price of supply and demand.

The sole effect of McCain's proposed tax cuts is that the government isn't going to be getting the money it needs to keep highways maintained, driving our country into bankruptcy even faster than it already is, while the oil companies make an even larger profit. This is economics 101.

[PatrickHenry]

Gas taxes are actually user fees for road construction and maintenance.

This is a worthy use of our tax money.

If you're not using the road, you don't buy fuel and don't pay the tax.

By the way brien...You wouldn't be in the trucking trade, now would you? heh...

[Elrathin]

With the way gas prices are on the rise, the oil companies will just use this as an opportunity to make more money by charging more than they normally would with the tax gone.

Good for the oil companies I guess.

[Scribbler1]

It's interesting the Republicans can so easily get behind a tax cut for one of the few taxes used for a constructive purpose.

[apdst]

The oil companies made 500 million. The government made 1.4 billion. Who is gouging us?

[Elrathin]

The oil companies made 500 million. The government made 1.4 billion. Who is gouging us?

Yep and how much is the government spending to maintain highways? How much are the oil companies paying to maintain highways?

[apdst]

Yep and how much is the government spending to maintain highways? How much are the oil companies paying to maintain highways?

Come to Louisiana and you'll see that they both pitching in equally.

[Elrathin]

Come to Louisiana and you'll see that they both pitching in equally.

So you are saying that NO money is being spent on federal highways in Louisiana?

[apdst]

[quote]So you are saying that NO money is being spent on federal highways in Louisiana?[quote]

Obviously, you've never been to Louisiana.

[Elrathin]

Obviously, you've never been to Louisiana.

So are you saying no money is spent on the federal highways in Louisiana?

[apdst]

So are you saying no money is spent on the federal highways in Louisiana?

Come to Louisiana and you decide.

[Elrathin]

Come to Louisiana and you decide.

Well considering that not spending ANY money on the federal highways would be a crime, and the Republicans in that state would be getting lawyers against the state, I'll take the hint that money is spent on the roads, just not to your satisfaction.

Which goes back to my original point, the oil companies are not spending anything on maintaining the roads, so of course the government is getting more because they have to maintain more unlike the oil companies.

[Scribbler1]

The oil companies made 500 million. The government made 1.4 billion. Who is gouging us?You sure about that? It's more like 39.5 BILLION (http://money.cnn.com/2007/02/01/news/companies/exxon/index.htm) just for Exxon Mobil in 2006.

[Osborn F. Enready]

The reason I support cutting the gas tax is simple.....

The government charges that tax for highways maintenance, and the STEALS FROM IT.

Now they are using gas tax to fund all kinds of BS around the country. All they did was LIE claiming a noble cause to START the tax, and now that they HAVE the tax, they steal from it like its an open-source ATM right into taxpayers pockets.

My local Mayor, Carlton S. FINKbeiner, created a huge scare tactic campaign against the city of Toledos people, in the last election.

He told people if they didn't approve a tax increase, the city wouldn't be able to provide police and fire coverage due to severe cuts......

THAT IS PATENTLY ILLEGAL, as the city charter REQUIRES fire and police coverage if the city is to remain incorporated, and never mind that ALL of the other city services would still exist while they were cutting fire and police..... its called a BLUFF in poker, and the sheeple of this area REFUSED to call him on it, so now we suffer with yet another BS tax based on lies and misinformation.

Same issue with the gas taxes (they steal from them for other "funds")
Same issue with Social Security (they steal from it, for other "funds")

ETC ETC ETC ETC ETC

[Truth_and_Power]

Gas taxes are actually user fees for road construction and maintenance.

This is a worthy use of our tax money.

If you're not using the road, you don't buy fuel and don't pay the tax.

By the way brien...You wouldn't be in the trucking trade, now would you? heh...

Funny, I don't hear McCain calling for a suspension of road building. So we cut the revenue but not the expenditure that it funds, this is standard debt-spending republicanism.

[Osborn F. Enready]

The states have an obligation to provide the roads their people ride on and are taxed for.

The federal government has been using federal highway funding as a means to foment state extortion for years, by the federal government, AGAINST the state.

Its about time all states accepted this fact, and stopped caving in to the feds BS.

[brien]

Drocket wrote:

"This isn't a tax break for consumers, this is an opportunity for the oil companies to gouge even more."

Let's see now... The US and State governments collect a total of 65 cents per gallon on every gallon sold, all profit. The oil companies earn no where near this, and are taxed on their earnings, so who is the "gouger" here?

[brien]

Gas taxes are actually user fees for road construction and maintenance.

This is a worthy use of our tax money.

If you're not using the road, you don't buy fuel and don't pay the tax.

By the way brien...You wouldn't be in the trucking trade, now would you? heh...

I have no argument with what you write PH, however, do you really think all of the fuel tax collected goes to the maintenance of roads and new construction? The government could suspend for 90 days, the fuel tax and not go bankrupt. Hell, the federal government could permanently suspend all fuel taxes, and get the revenue from another means, if they wanted to do it. Hey, if you want to charge user fees, then institute tolls, on all federal highways. It is more fair because it taxes directly the user and doesn't penalize people who don't use those highways.

As for trucking and diesel fuel, the word in the industry is that diesel fuel is $1.00 more per gallon than unleaded because the truckers and their shippers can better absorb that increase,(and pass it on) rather than directly passing it on to joe 4 wheeler at the pump. Jodi Rell, Gov of Ct, did just that last year, when she added a 6% fuel tax on the wholesalers in Ct. This type of back door taxing is why people are seeing higher costs for everything moved by trucks. It is a back door way for the oil companies to earn their profits, and for the government in CT to gouge taxpayers even more, without incurring the additional wrath of the unleaded legions at the pump..The government is as sneaky as a fox in a chicken coop when it comes to gouging citizens with taxation.

[brien]

Yep and how much is the government spending to maintain highways? How much are the oil companies paying to maintain highways?

The oil companies reinvest in exploration, refineries, and development, not to mention paying dividends and operating costs.

Here is what the US government spends upon the FHA alone 30.2 BILLION:



http://www.dot.gov/bib2004/fhwa.html

"The President's FY 2004 budget request of $30.2 billion will allow the FHWA to address these challenges."


Man, oh man, we should have the best highways in all of the world. Ever see I-95 from NYC to Maine border? Challenges eh? Show me 30 billion in improvements that GWB put into our federal highways..BULLSHIT with a capital B

[brien]

The reason I support cutting the gas tax is simple.....

The government charges that tax for highways maintenance, and the STEALS FROM IT.

Now they are using gas tax to fund all kinds of BS around the country. All they did was LIE claiming a noble cause to START the tax, and now that they HAVE the tax, they steal from it like its an open-source ATM right into taxpayers pockets.

My local Mayor, Carlton S. FINKbeiner, created a huge scare tactic campaign against the city of Toledos people, in the last election.

He told people if they didn't approve a tax increase, the city wouldn't be able to provide police and fire coverage due to severe cuts......

THAT IS PATENTLY ILLEGAL, as the city charter REQUIRES fire and police coverage if the city is to remain incorporated, and never mind that ALL of the other city services would still exist while they were cutting fire and police..... its called a BLUFF in poker, and the sheeple of this area REFUSED to call him on it, so now we suffer with yet another BS tax based on lies and misinformation.

Same issue with the gas taxes (they steal from them for other "funds")
Same issue with Social Security (they steal from it, for other "funds")

ETC ETC ETC ETC ETC

As usual Os, you have hit the proverbial nail right on its head and driven it home. Thanks bk

[PatrickHenry]

I have no argument with what you write PH, however, do you really think all of the fuel tax collected goes to the maintenance of roads and new construction? The government could suspend for 90 days, the fuel tax and not go bankrupt. Hell, the federal government could permanently suspend all fuel taxes, and get the revenue from another means, if they wanted to do it. Hey, if you want to charge user fees, then institute tolls, on all federal highways. It is more fair because it taxes directly the user and doesn't penalize people who don't use those highways.And of course I am not that naive, brien. I know that the government has long been in the shakedown business.

And I would actually like to see user fees instead of indirect taxes if that could be accomplished.

I use a lot of gasoline for my pressure washer business, and the fuel taxes apply to that gas that never sees a motor vehicle.

It's a bit difficult to distinguish between uses for the fuels though, and toll stations are an impracticality in most locations at present, agreed?

But a giveback on taxes of fuels that are mostly for motor vehicles would be a misdirected move, IMHO.

It would be difficult to reverse and the budget crisis is worsening the picture for the economy of the entire world. Better to slash military spending if we are going to engage in wishful thinking...

[brien]

And of course I am not that naive, brien. I know that the government has long been in the shakedown business.

And I would actually like to see user fees instead of indirect taxes if that could be accomplished.

I use a lot of gasoline for my pressure washer business, and the fuel taxes apply to that gas that never sees a motor vehicle.

It's a bit difficult to distinguish between uses for the fuels though, and toll stations are an impracticality in most locations at present, agreed?

But a giveback on taxes of fuels that are mostly for motor vehicles would be a misdirected move, IMHO.

It would be difficult to reverse and the budget crisis is worsening the picture for the economy of the entire world. Better to slash military spending if we are going to engage in wishful thinking...

But you see what government is doing now PH, they are increasing taxes on the wholesalers so John Q public doesn't realize it is the tax increase that has made his bread and butter go up in the market. Oil companies are doing the same. It is time for fuel taxes to be suspended and the revenue recovered from another source.

The military buget would be an excellent target as would be the enourmous entitlement programs.

This is really all begging the real question. What is going to happen to all of those cars when John Q can't afford to drive them any longer?

[PatrickHenry]

They rust if you don't drive them...

[brien]

They rust if you don't drive them...

Maybe my 51 Ford F-3 pickup would, but today's cars have so much plastic, I think they may melt in the noonday sun...

This country is in for the proverbial rude awakening. All those cars out in suburbia and $5 to $10 a gallon fuel. We will begin to hear from the unemployment and welfare lines, shouts like "ONLY THE RICH ARE DRIVING, THOSE PIGS...DON'T THEY CARE THAT THEY ARE KILLING THE ENVIORNMENT!" It will suddenly become politically incorrect to drive a car or truck.

What the hell are we gonna do with all of those empty suburban homes?

[Mayberry]

What the hell are we gonna do with all of those empty suburban homes?
Exactly what the lunatic far left wants: raze 'em and give the land back to "nature". Then we can all be herded into urban "smart growth" tenaments where even greater control of our lives can be accomplished. Then they can outlaw cars and make us all take public transit, or walk, or bike. From that day forward, we'll all be stuck in urban hell holes and left to fend for ourselves against gangs, crime, and disease, all while the far leftist treehugger elite enjoy their newfound "wild lands" at our expense. Looney? Far fetched? "Mad Max"-esque? Not really. Al Gore wants exactly that, and so do his followers. They want to take away our freedom to travel when and where we want to. They want to take away the American way of life. That is, for everyone but themselves. Policies, rules, and laws never seem to apply to those who make them. They just want to dictate to everyone else how they should live.