There should be an immediate 50 cents per gallon gas tax. It may seem insane to ask for a tax in the midst of an economic collapse, but this one actually makes perfect sense at this precarious moment in history. It is the one tax that can have a profound impact by keeping the commodity upon which it is based cheaper and the industry and economy the tax is derived upon running.
• A gas tax could actually help keep gas prices down in the long run!
* Gas prices went down because demand went down due to high prices and a bad economy.
* A gas tax will encouraging the public to continue the new habit of driving less because of high prices which will help keep the price of oil down.
* It would be better to pay a tax than higher prices to OPEC! Remember, 75% of the money we pay for this commodity goes outside the US. If we keep the price of gas high through a tax, we can keep consumption down (and hence the price of oil from OPEC down) while keeping the price of gas relatively high and keeping that 50 cents per gallon in our economy.
* A gas tax will encourage us to not buy or drive gas guzzling SUV’s which is good for the environment and our trade deficit.
• A gas tax would raise badly needed money for Detroit and building roads.
* This tax could raise $ 69 billion per year. We used 138 billion gallons of gas in 2006.
* A gas tax could pay for the $ 25 billion bailout the big three auto makers need to stay around.
* A gas tax could rebuild the infrastructure that is crumbling and put people to work, who will in turn pay taxes instead of collecting unemployment benefits we cannot afford.
* A gas tax helps attribute the actual cost of driving and keeping our addiction to automobiles somewhat market realistic. The cost of a bailout should be borne by those that use vehicles.
• A gas tax would help stem the new worry—deflation.
* Just a few months ago prices were on the rise and the prime culprit was energy costs. Now the concern is deflation.
* A 50 cent gas tax would help to fend off against a drop in prices because of falling energy costs and the economic downturn.
* The revenue raised from the tax can in turn be used to keep the auto industry alive and buy that industry the time it needs to bring new energy saving models to market.
Finally, a gas tax would have the psychological benefit of sanity. We have been throwing money at the economic crisis without regard to fiscal responsibility. That has a depressing effect upon the public—a sense of I give up. Here is an action that pays for itself and the industry it is intended to help, while employing Americans in a time of rising unemployment. It is the one tax that at this moment will not only pay for itself; it will help to keep the economy running.