Gas Tax

By: Colleen Heenan

Gas prices have dramatically dropped since the record breaking high gas prices that occurred in July of this year. This drop in the price of gas could be the worst thing for the energy crisis. Because people are seeing relief at the pump again, according to AAA over 41 million people hit the roads for Thanksgiving this year; it makes me wonder if people have forgotten about our current oil issues? Do people need a reminder of our July gas prices? Would a gas tax increase remind people of the crisis we are facing? Should they implement it now, while gas prices are down so the people who are feeling the pinch of the economy will not be further affected?

If there was a gas tax increase, many economist claim that it needs to be increased from 18.4 cent per gallon to $1 per gallon in the next five years. People fear that in these hard economic times the last thing people need is an increase in taxes of any kind. So a few ideas were offered that could encourage people to implement the gas tax:

1. Lowering the federal income tax to balance the increase in energy tax.
2. Putting a large portion of the revenue increase into alternative energy development.
3. It is thought that only a 10 percent increase in gas taxes would reduce consumption of oil by 6-8 percent.
4. Over 50 percent of American’s polled would pay for the increased tax if both the use of foreign oil use and the impacts of global warming were reduced as a result.

If gas prices and taxes stayed where they are, Americans have showed a trend of continue their steady oil consumption pace. They are less willing to buy fuel efficient cars, commute to work, work closer to home and essentially use less oil. This ultimately means, global warming issues stay the same and the needs for alternative options may be put on the end of people priority lists.

I think the raising of gas prices was the best thing for Americans and now that the prices are low again, this may be the best time to implement an increase in gas taxes. If the policy makers wait until price are high again, the people will be effected quicker and may cause further issue in our economy which is now officially in a recession.