Mazda 6 Forums banner

1 - 7 of 7 Posts

·
Registered
Joined
·
979 Posts
Discussion Starter #1
:yesnod: Well what do you think... I know ROmney won't go for it but do you think that they will bully him into it.. I was watching the news and the guy who put the bill in said if they get it passed and it goes to Romney's desk then he will sign.. Wouldn't it be nice if the tax of 21 cents per gallon were gone at least for a few months so we could save money, keep tourism boomin and have a little relief..... One can dream right???
 

·
Registered
Joined
·
238 Posts
yea, i mean short term it will be nice to save a few....but it won't work quite right. Not that i've ever liked the idea, it's all about the laws of supply and demand. It's summer, so in theory demand goes up, which means they will raise the price because they can, this will then lower demand (in theory) but they won't lower prices right away. If we just make the price lower through taxes, that will increase demand even further which means the oil company will raise the prices further, which will likely make the price catch up to where it would have been had the tax not been repealed in the first place.
I'm no economist, so feel free to find plot holes in my story and correct it, but i'm just too skeptical about the whole thing to believe that they will actually do anything to help the normal working folks if they aren't at least in some way benifiting.
anyway, technically speaking gas prices aren't that bad in comparison with the past. It's actually been really low for the last 20 or so years, at least if you compare with the price spikes over the whole time of gas sales.
But dreaming, yes, that would be nice.
 

·
Registered
Joined
·
3,392 Posts
No, you're right broken. Most of the economists I've heard or seen have said that dropping the tax would raise demand which would raise price. So the net benefit is negative because the government would lose a serious amount of revenue.
 

·
Registered
Joined
·
291 Posts
A dream would be the best way to think about repealing the gas tax.

There are currently two arguments in the state against the repeal. The first is from the environmentalists who state that removing the gas tax would lead to increased usage and harm the environment.

The government/political answer is that the tax is used to maintain the roads that everyone uses on a daily basis. Without that tax our Chapter 90 (transportation) monies would dry up and our roads would slip into disrepair.

The republicans are pushing for the removal of the tax and once the repeal was set to sunset/expire they would accuse the democrats of wanting to riase taxes right before the general elections(true or not, it's politics and it's an election year). Politically it is very hard to reinstate a tax once it has been repealed. This last reason is why the democratically controlled legislature would not let this bill pass.
 

·
Registered
Joined
·
36 Posts
I'm a republican here (although more of a libertarian). I can think of nothing that can be more wrong than repealing the gas tax. It's a per gallon tax, not a percentage of total sale. Despite fuel costs going up, revenues from the tax have stayed the same or more likely gone down due to decreased usage. Like it or not this is exactly the behavior that needs to be encouraged: "decreased usage". As has been pointed out, decreased usage results in less money needed for road repairs. The reality is that if they end the gas tax, people who use the most will likely not pay a proportinate share of the money needed for road repairs.
 

·
Registered
Joined
·
3,392 Posts
I agree with much of what you say, although I'm pretty sure that demand hasn't actually decreased since advent of the tax, although I'm sure its stemmed the rate of increase. Economists predict it was take north of 4 dollars a gallon to actually affect driving habits. Imagine that!
 

·
Registered
Joined
·
467 Posts
I think it would take more than $4 to change my habits. Let's say gas prices doubled overnight and is $6 a gallon, and I stay put. That means my yearly usage would be around $8,000 instead of $4,000.

Now, let's say I moved to an equivalent house right next to work, so my usage would go down to nearly nothing. That house would be probably cost me $380K more than the price of my current place... just to be closer to work.

The principal on $380,000 is $12,666 a year. The interest at 6% for 30 years is $484,000. That's a lot of fucking gas.
 
1 - 7 of 7 Posts
About this Discussion
6 Replies
6 Participants
Sax Maniac
Mazda 6 Forums
Mazda6club.com is a forum dedicated to the Mazda6 / Atenza. Come and discuss reliability, performance, modifications, and more!
Full Forum Listing
Top