What do you think about the proposed "gas tax holiday" in the news?
Great Idea
Side Score: 18
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Bad Idea
Side Score: 63
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The great part about the Gas Tax Holiday is that it would provide short term relief for many Americans. $69 might not be a lot for everyone but it still has purchasing power (even though it probably couldn't even buy a full tank of gas for an SUV anymore). Short term relief is what's need to stimulate our economy right now. Side: Great Idea
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It may provide some very insignificant short term relief, but because of the increase in demand in the long term gas prices will rise even further (further still if oil companies jack up prices to replace the tax). There is a reason 200 economists got together to speak out against this, one calling it "just bad policy." Side: Bad Idea
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If enacted the "gas tax holiday" would repeal the 18.4-cent federal gasoline tax during the busy summer driving season. Let's do the numbers: The Gas Tax Holiday lasts 3 months A family drives average 2000 miles/month In a gas-guzzler that gets 16 miles/gallon The family saves $69 That is not a lot of money. Not when a barrel of oil already costs $120 and could skip higher at any time. This absurd idea is a band-aid of the ugliest kind. It seems to embody vote pandering at the most basic level: Side: Bad Idea
"The family saves $69" Actually, if I'm reading that article right, they save less than that. If the tax is dropped that won't mean the gas producers have to charge less. They could charge the same amount and simply make more profit. In fact, that may be what they have to do, since as the article states, "Gas is always in very short supply during the summer, which is why prices go up. In order to reduce the price, you would have to increase supply, but that is difficult over the short term, because the refineries cannot add capacity." Side: Bad Idea
By temporarily lifting the gas tax, demand would increase. Increased demand with a limited supply will raise prices. The price would likely bounce right back to where it would be with the gas tax, resulting in even higher profits for the oil companies. So people wouldn't see the savings they are hoping for and the government would lose out on the much needed tax revenue. Side: Bad Idea
What some people (namely, most of the world's population) don't realize is that the price of gasoline has almost nothing to do with what wars or political tensions exist within the countries involved--there are always sneaky, economical ways around these problems. Rising prices have to do with refineries and the fact that they USE these tensions as seemingly viable excuses to ask for higher prices. THIS is the root of the problem. Besides, the government is obviously going to add additional "fees" to regular taxes to make up for money lost during these three months. NOTHING is free these days. Side: Bad Idea
Simple economics can tell you why the gas tax holiday is a bad idea. When prices fall, quantity demanded will increase. With higher demand, consumers will bid the price of gas up faster than they would with the gas tax under effect. Then the gas tax comes back, and prices are higher than they would have been if the tax holiday didn't happen. Plus it's entirely possible for the oil companies to not pass on the savings to consumers, since the tax is on producers. Plus the government is already in trillions of dollars of debt, so lowering taxes is the sort of thing we ought to do with great consideration. Side: Bad Idea
How about breaking our dependency on foreign oil and sincere consideration of alternative energy sources. A "gas tax holiday" would be just another set of blinders for the American people to throw on and play make-believe with. Everything is going to be 'OK. Everything is going to be 'OK. Everything is going to be 'OK. Side: Bad Idea
That's no way to cure this serious problem. It's an irresponsible Idea, and this just goes to show that Obama has his shit straight. Don't play the "I'll reward you with cheap fuel if I'm elected". Tell'em straight up, 'You are all in trouble and continuing the problem will not solve a thing, if not worsen the whole ordeal'. People have to change their lifestyles, that's the only way to end this issue. People don't want to, they have to, now grow some f'ing balls and DO IT. Side: Bad Idea
I agree and think a boycott would be the best way to get America's message across to OPEC. DON'T DRIVE ON SUNDAY MAY 18th!! Side: Bad Idea
OPEC doesn't care if we don't drive. The commodities market will still be open and people will still be buying their oil. If everyone pledged to not buy gas instead of not driving, then the price of oil would dip slightly, and US companies might not make quite as much money as they would otherwise. OPEC wouldn't see too much of a difference though. Side: Great Idea
Good point. One day of banning gas purchases won't have a bit of an effect on the global demand for oil. Fact is, the day after the ban everyone will need to fill up and the natural supply and demand forces will balance. The true issue is that demand is far outstripping supply, which will continue to put upward pressure on prices for the forseeable future until we can find alternative sources of energy that are economical, environmentally sound, and actually work. Side: Great Idea
Get a bike. I bought one a few weeks ago and now I am thinking about selling my car. ;^) Boycotting fuel and the use of automobiles for a day is a petty message. You have to strike culture at it's heart, so people want to join you, rather than leave them feeling obligated to do so. Side: Bad Idea
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