rationing gas
I am generally capitalist, and believe that the best way make things affordable is to let the market do its work.
I am having a bit of hesitation about that lately though. It seems to me that frivolous demands can increase price for those with fixed needs.
Let's say that I drive 5 or 10 miles per day to work. My rich neighbor drives 100 miles a day, golfing and boating. His demand is going to effect the price that I pay at the pump. I must pay, if I want to earn a paycheck. He doesn't have to pay, but he is using disposable income, and doesn't care.
It seems to me that there should be a ration based tax system. Each month, your first 30 or so gallons per vehicle are at one rate, which is subsidized by a tax on the fuel purchased over that rationed amount.
That way if You are driving up demand, you are also providing for the people who you are hurting by driving up demand.
Could be managed kinda like the fairtax.org style prebate.
I think the intent of your post is good and I agree with the emotion behind it, but I don't think this would work.
What about truckers? They drive more than just about anybody. They also bring all of our stuff to stores. If you raise the praise of gas on them proportionate to how much they drive, milk will cost $10/gallon in no time.
What about small business owners? They are either driving product around or visiting clients regularly. This would put them out of business.
What about here in Los Angeles? I personally know housekeepers that live in Woodland Hills and drive to Westlake Village to clean homes for rich people. The housekeepers put a decent amount of miles on their cars every day, and I'm sure they aren't being paid top dollar. This would make their families suffer.
I think there is no faster way to break down capitalism and crush an economy than to fall into the "let's tax the rich" trap. I say this as a non-rich guy. :)
I see your point, but what does that do to the neighbor who isn't rich, but has to commute several miles back & forth to work in order to make ends meet?
Yah I agree, but all of these folks are being hurt under the current system as well however... Decreasing demand is the solution, but nobody wants their demand to be what is cut.
I exempting a small ration for everybody is going to raise the rates on the stuff above the ration, but it is still going to take a lot of gallons to cost more than you gain from the tax cut. Many states and governments are considering "Gas Tax Holidays" right now anyway. So I don't see this as much different, except we would limit the break to a reasonable amount of consumption.
People who burn gas for business can generally pass along their costs to their purchasers.
People who burn gas for fun, cannot.
I think giving local suppliers a break is a good thing.
I understand your point, but I think if we just did something like the Fair Tax prebate with the rationing that would help considerably anyway.
We also need more drilling, and make those Flex Fuel cars for less. We'd love to have one, but can't afford it.
Nice to bump into someone from Spokane. We're up on the northside.
Rationing is always a bad idea. It might be necessary in some cases (extreme shortages,) but otherwise?
Besides, it's not the rich guy in his Ferrari who's driving up the price. There are way too few of those to have any effect. Demand is rising worldwide and that has the major effect.
You have to increase supply (more drilling,) and increase refining capacity, or it doesn't matter how much you drill.
Then you have to come up with alternatives to take pressure off the supply. Hydrogen systems for cars, nuclear (and wind, geo, etc.) to take the pressure off coal and oil, etc.