Wednesday, April 26, 2006

Please Tax the Oil Companies!!!

Congress needs to act; it is an election year and we’ll be voting.

In addition:

  1. Please extend the tax incentives for purchasing large SUVs that weigh more than 6000 pounds.

  2. Also, keep enacting environmental protection legislation with unreasonable timeframes for implementation

  3. Please make sure the public is fully in-the-know well in advance so that we can have nationwide panic which will lead to even stronger short term demand.

There is no doubt that all of these efforts will bring the higher gas prices necessary to make some tangible progress in actually finding viable alternative fuel sources.

3 comments:

John Tabor said...

I'm not sure I'm following your logic. It seems you're arguing for additional taxes which will simply be passed on to consumers through higher gasoline prices which, in turn, will make it economically viable to develop alternative sources/fuels.

Have I got it right?

If so, why not just leave the market alone and let supply/demand work its magic? Or is that just too capitalistic ("reactionary"?) for your taste? :)

Bob said...

This post was a foray into satire. For those who may have forgotten macro econ 101 , which clearly you have not (you have it totally correct).

Note that the proposals outlined as additional items are contrary to current regulatory action for the most part - there has been some reduction in the SUV deduction/incentive amount.

So, the objective of the government must be higher gas prices, which explains all of the actions.

Finding good in the bad, I am totally in support of alternative fuels /power sources. As such, tax away!

Meanwhile, the average consumer will be hard pressed to understand why gas prices have risen again since the 4th estate seems to be explaining the move as a threat by the governmment to force prices lower....

Sorry, preaching ot the choir now. :)

Bob said...

Oh and don't forget, protecting consumers from themselves is not market tampering. ;)

See also:

http://money.cnn.com/2006/04/26/news/economy/gas_gouge_anatomy/index.htm

I am still looking for some idea of how to differentiate price gouging from fair market value.

There's a willing buyer and a willing seller... and then an attorney general, or two. I'm sorry, but there are enough choices in the auto fuel market to defeat undue encumberance and/or distress.