by KaiserJeep » Tue 16 Feb 2016, 21:26:04
All taxes applied to raw materials used to manufacture other goods are basically regressive taxes - they tend to suppress the industries that use those materials, reduce employment, and increase the cost of those goods for everybody from a "one percenter" to the government welfare "clients" enjoying their generations old status as non-workers.
Since transportation is in fact a key component of everything we consume regardless of source, and since oil is used for ship, rail, and truck transport - the effects of $10/barrel taxation are gonna be further economic malaise no matter how one spends the tax revenues.
If reducing petroleum imports (versus domestic petroleum production) is a particular goal (I believe very much that it should be) then apply such a tax to the barrels of oil imported to this country, and thus encourage domestic oil production.
If the improved efficiency of private vehicles is the goal, then apply the tax to the finished fuels (gasoline and diesel) rather than to the raw materials, because that same barrel of oil also is used for space heating, for plastics, for fertilizers/pesticides/herbicides, and in fact for thousands of other products. Then encourage the use of other tech such as Battery Electric Vehicles by establishing a national network of charging stations for BEVs, by mandating that such tax revenues be used for such new transportation infrastructure. Furthermore, make the use of those government-funded vehicle charging stations that use solar panels, wind turbines, or other renewable energy sources free for licensed driver taxpayers.
The POTUS needs to be more up front with what his actual goals are with this tax. The only thing I can read into the application of a $10 tax to every barrel of petroleum is "Let's stick it to the oil companies!".
If you are so juvenile that this thought gives you joy, and so thoughtless as to believe that a $10 a barrel tax on petroleum will actually benefit anyone, than you need to substitute THINKING for FEELING.
KaiserJeep 2.0, Neural Subnode 0010 0000 0001 0110 - 1001 0011 0011, Tertiary Adjunct to Unimatrix 0000 0000 0001
Resistance is Futile, YOU will be Assimilated.
Warning: Messages timestamped before April 1, 2016, 06:00 PST were posted by the unmodified human KaiserJeep 1.0