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How To Harm Americans

February 19, 2016

Millions of Americans must drive their cars to work every day. Millions must also drive their cars to the store, to the dry cleaners and to church.

The low price of oil and the concurrent low price of gasoline has been a boon to Americans, especially the middle class.

Periodically there has been a call to raise gasoline taxes, especially by extreme environmentalists, so as to reduce CO2 emissions.

But others claim increased gasoline taxes are needed to provide funds to fix roads and bridges.

Unfortunately, highway taxes are being used to fund mass transit, rather than to fix roads and bridges, the original intent of gasoline taxes.

A Senator from Delaware is proposing to nearly double the existing 18.4 cent per gallon Federal gasoline tax, (24.4 cents for diesel) in order to “help pay for road and transit projects.”

An Oregon Congressman is also proposing to nearly double the Federal gasoline tax.

These proposals would increase Federal gasoline taxes to 33 cents per gallon … which are in addition to state gasoline taxes.

Combined federal, state and local gasoline taxes. Map from American Petroleum Institute

Combined federal, state and local gasoline taxes.
Map from American Petroleum Institute

These proposals, plus others, are being made now because the price of gasoline is low, where it’s thought people might not notice the higher taxes.

New Yorker Magazine said:

“This is also an excellent moment to raise the gas tax, since oil and gas prices are so much lower than they were, making any price increase at the pump more palatable to drivers.”

And, the New Yorker also pointed out that CO2 emissions would be cut:

“The gas tax, by raising the cost of driving, gets us less of things we don’t like (pollution, carbon emissions, and road wear).”
(Emphasis added.)

Because we would drive less.

What these proponents of higher gasoline taxes ignore is that gasoline prices will increase again when the price of oil goes up … which is a virtual certainty.

President Obama’s proposal to tax each barrel of oil produced in the United States by $10 will automatically increase the price of gasoline as the “fee” is passed along to consumers.

This populist proposal will be supported by some, because “the rich oil companies” can afford the tax, and can absorb the increased cost.

It should also be noted that the government already receives a 12.5% royalty on oil extracted from Federal land, and even more from offshore.

The $10 fee will raise the cost of heating oil for those who use oil to heat their homes, which especially affects homeowners in the Northeast.

It will also increase the cost of manufacturing products that use oil, such as plastics.

Perversely, it will increase the cost of asphalt which will increase the cost of road repairs wherever asphalt is used.

The real motivation of the proposal to tax each barrel of oil $10 is revealed in the opening sentence of the Whitehouse Fact Sheet:

“As President Obama has repeatedly said, ‘No challenge poses a greater threat to future generations than climate change.’”
(Emphasis added.)

Cutting CO2 emissions is the underlying real reason for placing a $10 fee on each barrel of oil produced on Federal lands, and is also the underlying real reason for many proposals to increase the gasoline tax.

The $10 fee, as well as any other proposal to increase gasoline taxes, will harm Americans, especially the middle class.

* * * * * *

Nothing to Fear explains why CO2 isn’t to be feared, why politicians are harming Americans by pushing the CO2 agenda, and that mankind has benefited from using fossil fuels and can continue to do so, perhaps for 1,000 years.

Nothing to Fear is available from Amazon and some independent book sellers.
Link to Amazon: http://amzn.to/1miBhXy

 

Book Cover, Nothing to Fear

Book Cover, Nothing to Fear

* * * * * *

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5 Comments leave one →
  1. Garry Buttner permalink
    February 19, 2016 12:06 pm

    Donn, Thanks for continuing your education effort, and the creation of interesting and informative emails.

    Garry Buttner

    On Fri, Feb 19, 2016 at 9:22 AM, Power For USA wrote:

    > Donn posted: “Millions of Americans must drive their cars to work every > day. Millions must also drive their cars to the store, to the dry cleaners > and to church. The low price of oil and the concurrent low price of > gasoline has been a boon to Americans, especially t” >

  2. February 20, 2016 4:52 pm

    I’ve never been a fan of “sin taxes”, unless the primary reason is indeed to eliminate the behavior and not to raise funds for a worthy cause. The worthy cause is soon underfunded.

    I’m curious if you’ve examined the idea of fee & dividend as espoused by the Climate Lobby? I’m cautiously in favor of this because 1) climate change/ocean acidification is real and 2) I’ve not seen any better proposals for near term change of societal behavior. Though I don’t believe it will actually work unless a small amount (.1 % ?) is used to employ people to oversee the money redistribution. http://www.climatelobby.com/fee-and-dividend/

  3. February 21, 2016 9:16 am

    The issue is whether climate change is caused by CO2 or whether it is natural. I will write about cause and effect next week, and demonstrate that CO2 is not the cause of global warming, AKA climate change.
    Any type of carbon tax will distort how we use energy, and force the poorest among us to pay more for their electricity, gasoline, and oil to heat their homes. It will also increase the price of all the products that are made using oil and natural gas, such as fertilizer (increasing the price of food), and plastics.
    The money raised from carbon taxes will never be returned to poor people. There has never been a tax that hasn’t found it’s way into spending bills.
    Ocean acidification is another fear campaign, that has already been exposed by scientists and the founder of Greenpeace. See a recent article at http://bit.ly/1TF9UB5
    I’m also ging to suggest you read my book Nothing to Fear, available at Amazon, (search for Nothing to Fear Bright Future).

Trackbacks

  1. Weekly Climate and Energy News Roundup #216 | Watts Up With That?

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