stephanie
04-26-2007, 03:38 AM
David Lazarus
SNIP:
Wednesday, April 25, 2007
for full article...
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/04/25/BUGF3PEIUQ1.DTL
A gallon of unleaded regular gas was averaging $2.85 nationwide Tuesday, $3.34 in California and $3.47 in San Francisco, according to AAA. Experts say drivers could be paying $4 per gallon at the pump before long.
But is that high enough?
This week we'll look at the thorny issue of gas taxes and whether a major hit to the pockets of American drivers is the only way we can wean ourselves from our addiction to foreign oil and spur increased demand for, and production of, fuel-efficient vehicles.
If so, it won't be easy. And it won't be painless.
"With gas prices where they are now, the political concern is that anyone would be asking for trouble by bringing this up," said Leon Panetta, founder of the Panetta Institute for Public Policy in Monterey and White House chief of staff under former President Bill Clinton.
"It would take courage," he said. "But it's the right argument to be made."
To be sure, it's not a new argument. Some economists have been saying for years that higher gas taxes would have myriad benefits for Americans -- not least, they would discourage consumption and thus make us less reliant on the Organization of the Petroleum Exporting Countries and other overseas oil suppliers.
Higher gas taxes could also increase demand for fuel-efficient vehicles, spur development of new technologies and be used to fund alternative energy sources or expansion of public transportation systems.
A prominent advocate of higher gas taxes is N. Gregory Mankiw, a Harvard University economist and former chairman of the Council of Economic Advisers under President Bush. He's calling for Congress to adopt a $1 increase in gas taxes, phased in by 10 cents a year over the next decade.
At the same time, Mankiw would balance this with a reduction in income taxes. A $1 increase in gas taxes, he says, could raise as much as $100 billion in annual revenue. This might be sufficient to lower income taxes by about two percentage points per taxpayer.
"When you hear the words 'gas tax,' you naturally think it's going to be a tax increase," Mankiw said. "I would earmark the money for tax cuts."
Other economists say gas-tax revenue could take the form of rebates to consumers, increased investment in public transportation or increased spending on research into new energy technologies.
According to the American Petroleum Institute, U.S. drivers were paying an average 45.8 cents per gallon in federal and state taxes for a gallon of gas last month. Since 1993, the federal tax has remained steady at 18.4 cents per gallon.
California drivers are saddled with average gas taxes of 58.6 cents per gallon, according to the institute. That's the third-highest total in the nation, after New York (60.8 cents) and Hawaii (60.4 cents).
The lowest gas-tax burdens can be found in Alaska (26.4 cents per gallon), Wyoming (32.4 cents) and New Jersey (32.9 cents).
By contrast, taxes add about $4 to the price of a gallon of gas in Europe and more than $3 in Japan.
These sky-high gas taxes abroad both fill government coffers and make drivers highly sensitive to pump prices. As a result, a greater emphasis is placed on walking and public transportation than in the United States, and fuel efficiency is among the most important considerations when buying a new vehicle.
SNIP:
Wednesday, April 25, 2007
for full article...
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/04/25/BUGF3PEIUQ1.DTL
A gallon of unleaded regular gas was averaging $2.85 nationwide Tuesday, $3.34 in California and $3.47 in San Francisco, according to AAA. Experts say drivers could be paying $4 per gallon at the pump before long.
But is that high enough?
This week we'll look at the thorny issue of gas taxes and whether a major hit to the pockets of American drivers is the only way we can wean ourselves from our addiction to foreign oil and spur increased demand for, and production of, fuel-efficient vehicles.
If so, it won't be easy. And it won't be painless.
"With gas prices where they are now, the political concern is that anyone would be asking for trouble by bringing this up," said Leon Panetta, founder of the Panetta Institute for Public Policy in Monterey and White House chief of staff under former President Bill Clinton.
"It would take courage," he said. "But it's the right argument to be made."
To be sure, it's not a new argument. Some economists have been saying for years that higher gas taxes would have myriad benefits for Americans -- not least, they would discourage consumption and thus make us less reliant on the Organization of the Petroleum Exporting Countries and other overseas oil suppliers.
Higher gas taxes could also increase demand for fuel-efficient vehicles, spur development of new technologies and be used to fund alternative energy sources or expansion of public transportation systems.
A prominent advocate of higher gas taxes is N. Gregory Mankiw, a Harvard University economist and former chairman of the Council of Economic Advisers under President Bush. He's calling for Congress to adopt a $1 increase in gas taxes, phased in by 10 cents a year over the next decade.
At the same time, Mankiw would balance this with a reduction in income taxes. A $1 increase in gas taxes, he says, could raise as much as $100 billion in annual revenue. This might be sufficient to lower income taxes by about two percentage points per taxpayer.
"When you hear the words 'gas tax,' you naturally think it's going to be a tax increase," Mankiw said. "I would earmark the money for tax cuts."
Other economists say gas-tax revenue could take the form of rebates to consumers, increased investment in public transportation or increased spending on research into new energy technologies.
According to the American Petroleum Institute, U.S. drivers were paying an average 45.8 cents per gallon in federal and state taxes for a gallon of gas last month. Since 1993, the federal tax has remained steady at 18.4 cents per gallon.
California drivers are saddled with average gas taxes of 58.6 cents per gallon, according to the institute. That's the third-highest total in the nation, after New York (60.8 cents) and Hawaii (60.4 cents).
The lowest gas-tax burdens can be found in Alaska (26.4 cents per gallon), Wyoming (32.4 cents) and New Jersey (32.9 cents).
By contrast, taxes add about $4 to the price of a gallon of gas in Europe and more than $3 in Japan.
These sky-high gas taxes abroad both fill government coffers and make drivers highly sensitive to pump prices. As a result, a greater emphasis is placed on walking and public transportation than in the United States, and fuel efficiency is among the most important considerations when buying a new vehicle.