AM REPORT: NY Senate joins the gas-tax pander parade
By Mary Anna Towler on May. 8th, 2008 at 8:39am 1 Comment
The Assembly, dominated
by Democrats, opposes the holiday, as does Governor David Paterson, so we're likely to keep on paying the tax.
That's a good thing. The high gas prices are painful, but they're necessary. And hundreds of economists are saying that cutting the taxes on gas will make things worse, not better. In a column yesterday, the Wall Street Journal's Mark Gongloff lays out the problem.
High demand is driving up the price of gas. Cut the price, and we'll use more gas, which will drive the price back up. And that'll just make the oil companies richer and increase global warming. Raise gas taxes and we'll drive less, buy smaller cars, and push for better mass transit.
What about the low-income and middle-income Americans for whom the cost of gas has become a real burden? Find some other way to help them. Reduce income taxes, for instance, or provide an income-related rebate. Or, frankly, ration the stuff.
Americans act as if the high gas prices are a surprise. They shouldn't be. We've put off reducing our dependence on oil for far too long. Maybe now we'll be ready to talk about real solutions.






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cynic on May 8th, 2008
I'm not so sure high demand is driving gas prices. Remember the good old days when Bill Clintion was presidnet and gas was $.85 a gallon? Well, that was less than 10 years ago. Global fuel consumption has, no doubt, risen in the past decade, but enough to justify more than quadrupling the price? And what happened to all that oil we liberated in Iraq...sorry, I mean poor Iraqi's we freed from tyranny?
No, before this administration took office VP Cheney sat down to craft an energy policy for this country. Who did he look to for help in creating that policy? His friends in the oil industry, of course. The oil companies see the end of the free ride provided by this administration and they are getting one last grab at your wallet before the party ends. No, a Clinton or Obama administration won't do anything crazy like nationalizing oil companies, but they will certainly have a saner energy policy than simply extending daylight savings time.