Comments on: What’s So Difficult About a Gas Tax? http://6ampacific.com/2009/09/20/whats-so-difficult-about-a-gas-tax/ Basab Pradhan's weblog about business and life in a 'flat world'. 6 AM Pacific is the best time for a global conference call. Sun, 14 Mar 2010 09:29:01 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: sks http://6ampacific.com/2009/09/20/whats-so-difficult-about-a-gas-tax/comment-page-1/#comment-16429 sks Mon, 28 Sep 2009 22:25:43 +0000 http://6ampacific.com/?p=508#comment-16429 Basab, That is why US is US and Denmark is Denmark. Ever wondered why you are in US and not in Denmark? Basab, That is why US is US and Denmark is Denmark. Ever wondered why you are in US and not in Denmark?

]]> By: sriks http://6ampacific.com/2009/09/20/whats-so-difficult-about-a-gas-tax/comment-page-1/#comment-16427 sriks Fri, 25 Sep 2009 06:43:35 +0000 http://6ampacific.com/?p=508#comment-16427 I agree that almost all political will stems from Dollars. The R's have the Oil lobby to take care of & the D's have the Auto lobby to take care of. Plus like you mention it is so easy to point to the out cry & opposition that would be there against such a non-populist move. I just find it surprising how much the thought free-markets know best has seeped into the US psyche that anything interventionist that is better for the majority is not even considered. The Health care debate is case in point. Strong economic theory that shows why a fragmented coverage model will never cover 100% of the people is not even discussed. Despite the Wall street collapse no one is willing to question the implicit assumptions that the market always knows best. What intrigues me though is that the strength of the Dollar stems from the power of the goverment to tax such a big economy. But if the on-the-ground reality is the inability of the govt. to raise taxes (forget Gas even normal taxes) then why is there no run of that currency? I agree that almost all political will stems from Dollars. The R's have the Oil lobby to take care of & the D's have the Auto lobby to take care of. Plus like you mention it is so easy to point to the out cry & opposition that would be there against such a non-populist move. I just find it surprising how much the thought free-markets know best has seeped into the US psyche that anything interventionist that is better for the majority is not even considered. The Health care debate is case in point. Strong economic theory that shows why a fragmented coverage model will never cover 100% of the people is not even discussed. Despite the Wall street collapse no one is willing to question the implicit assumptions that the market always knows best.
What intrigues me though is that the strength of the Dollar stems from the power of the goverment to tax such a big economy. But if the on-the-ground reality is the inability of the govt. to raise taxes (forget Gas even normal taxes) then why is there no run of that currency?

]]> By: Quirk Quotient http://6ampacific.com/2009/09/20/whats-so-difficult-about-a-gas-tax/comment-page-1/#comment-16426 Quirk Quotient Thu, 24 Sep 2009 14:11:16 +0000 http://6ampacific.com/?p=508#comment-16426 There are a couple of differences between Denmark (and other smaller European countries) and the United States. The geographic size and the development of public transport are two key differences. There are very few places in the US where you can hop on a bicycle and go to work. Over the years, Americans have come to love their independence that driving a car gives them. Increasing a tax on gas, will also increase prices of all other products and services which depend on transportation e.g. food, travel, clothing etc. Having said all that, you do make some valid points. The gas tax increase cannot be done in isolation unless some of that tax is channeled into building public transportation and encouraging R&D into other sources of energy. No one in Washington has enough political capital to spend, to get all of these things done properly. It will only be some strong shock which will cause some definite action to be taken by governments, businesses and common citizens. There are a couple of differences between Denmark (and other smaller European countries) and the United States. The geographic size and the development of public transport are two key differences. There are very few places in the US where you can hop on a bicycle and go to work. Over the years, Americans have come to love their independence that driving a car gives them. Increasing a tax on gas, will also increase prices of all other products and services which depend on transportation e.g. food, travel, clothing etc.

Having said all that, you do make some valid points. The gas tax increase cannot be done in isolation unless some of that tax is channeled into building public transportation and encouraging R&D into other sources of energy. No one in Washington has enough political capital to spend, to get all of these things done properly. It will only be some strong shock which will cause some definite action to be taken by governments, businesses and common citizens.

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