Gas Tax

PURPOSE: The purpose of my news report was to bring up an issue that is not widely talked about in the US, but affects everyone in the country. I think it is interesting that the US is so hesitant to raise the gas tax, even though it holds the solution to so many of our problems. We talk so much about developing new types of energy, but by raising gas taxes and making it harder to access gas we would solve those same problems. The way I see it, it is the same as a carbon tax on corporations, the individual pays for what they pollute, and raising it would force people to be more conscious about their environmental ethic. 

NOTES - TALKING POINTS

• Only two countries—Kuwait and Saudi Arabia—charge lower gas taxes than the U.S. and both are net global oil suppliers, not consumers.
• The federal gas tax has remained unchanged at 18.4 cents for a gallon of gasoline (and 24.4 cents for diesel) for nearly two decades.

• Cannot cover highway and other transportation costs like it is supposed to 
• Failure to care for existing roads/bridges and the lost productivity with them are estimated to add $100 billion annually to the federal deficit.
• Opponents argue that the gas tax is detrimental to American competitiveness 
• AND that it Disproportionately effects lower income Americans?
• But proponents of elevated gas tax say that investing in infrastructure is vital to American economic growth
• and that under taxing gas encourages over dependency
• The US was once #1 in the world for its infrastructure, but has fallen to 15th 
• Seen as a way to avoid the “Fiscal Cliff”
• Gas tax spreads burden over hundreds of millions of people, who also benefit from it
• US GAS PRICES = WAY less than rest of world

• In the U.S., gas prices average $4.19 per gallon, according to Bloomberg. In contrast, gas prices are $5.75 per gallon in Canada, $6.75 per gallon in Australia, $8.84 per gallon in the United Kingdom, and $9.35 per gallon in Italy. - From MAY -> price changes proportionally in countries. 

ENVIRONMENTAL ASPECT

• Increase gasoline tax = less consumption 
• people have incentive to either drive less, or buy more fuel efficient cars 
• In Europe -> where gas taxes are significantly higher, clean diesel and fuel efficient cars have been sold for much longer than in the US

DISCUSSION QUESTIONS

- Would raising the gas tax affect consumption? Or would people pay to keep their current lifestyles?

- What are some positives and negatives to an increased gas tax? Do the benefits of one outweigh the disadvantages of the other?

- Should the US raise its gas tax?  

"Are gas prices really that high?."FlowingData . N.p., 22 Mar. 2011. Web. 29 Nov. 2012. <http://flowingdata.com/2011/03/22/are-gas-prices-really-that-high/>.

Gordon , Deborah . "Five myths about your gasoline taxes ." CNN. N.p., 7 Dec. 2011. Web. 29 Nov. 2012. <http://www.cnn.com/2011/11/18/opinion/tsay-gordon-gas-tax-myths/index.html>.

Kavoussi, Bonnie. "Gas Prices In U.S. Are Among Lowest In World, Report Finds."The Huffington Post. N.p., n.d. Web. 29 Nov. 2012. <http://www.huffingtonpost.com/2012/05/15/united-states-low-gas-prices_n_1518169.html>.

West, Sarah E.. "Should Distributional Considerations Hold Up Higher Gasoline Taxes? ." Resources for the Future - RFF.org . N.p., 22 June 2009. Web. 29 Nov. 2012. <http://www.rff.org/Publications/WPC/Pages/09-06-22-Should-Distributional-Considerations-Hold-Up-Higher-Gasoline-Taxes.aspx>.