The Observation Deck

So I am sure we al know about the "gas tax holiday" proposed by a couple of the presidential candidates.

Am I the only one who think it is a sham? A shameless example of a gimmick.
They think you are so dumb that you will fall for such pandering. That is not going to work. It is nothing more than a finger in the dyke of horrible energy management. I am almost offended that they would try to float this idea.

At least we can take solace in the fact that there is less than no support on the hill.

Sorry about the rant but man did that @#$% me off.

So what do you all think about it?

Sorry forgot the obligatory semi-biased source

Click Here Please

The federal tax on diesel is a little over $.24 cents per gallon. This would definitely help some midsize trucking companies to the tune of $250k in just one month.

The gas-tax holiday is a scam. It is a scam that must be destroyed! It may even be Socialism! Gas taxes barely cover roads and high way expenses as it is.

If i remember high school accounting correctly, diesel for truck drivers is an operating expense that is completely deductible anyways. Only profits are taxed. Profits = Income - expenses.

ryan costa wrote:The gas-tax holiday is a scam. It is a scam that must be destroyed! It may even be Socialism! Gas taxes barely cover roads and high way expenses as it is.

If i remember high school accounting correctly, diesel for truck drivers is an operating expense that is completely deductible anyways. Only profits are taxed. Profits = Income - expenses.

So, if your expenses increase then what happens to your profits? (that debit credit thing)

Stephen Eisel wrote:The federal tax on diesel is a little over $.24 cents per gallon. This would definitely help some midsize trucking companies to the tune of $250k in just one month.

How would it help? If the market will bear $3.75 gasoline, then when you remove the tax, the oil companies will simply raise the prices to pre-gimmick prices. We're still paying as much, the government is making less money and the oil companies are making more. How again is this a good solution?

Stephen Eisel wrote:

ryan costa wrote:The gas-tax holiday is a scam. It is a scam that must be destroyed! It may even be Socialism! Gas taxes barely cover roads and high way expenses as it is.

If i remember high school accounting correctly, diesel for truck drivers is an operating expense that is completely deductible anyways. Only profits are taxed. Profits = Income - expenses.

So, if your expenses increase then what happens to your profits? (that debit credit thing)

All shipping companies have the freedom to raise their rates to adjust to fuel costs. Why ain't they using their freedom? Where is their freedom?

Gas taxes should be raised to cover the Iraq War/Occupation. Gas taxes should be raised to cover all federal assistance to Egypt and Israel. It is the common sense thing to do. The corollary would be that not invading Iraq, not aiding Egypt, and not aiding Israel means lower gas taxes. Candidate A will suggest it. Candidate B will respond with "Candidate A wants to raise Taxes! Candidate A is a Liberal! Candidate A hates Freedom!".

The Oil commodity trading markets perform just like the stock markets. Everyone on the trading floor gives each other high fives at the end of the day when they manage to push the indexes up. A rumor of a threat to 1 percent of production is cause to raise prices 5 percent. high five!

Brian Pedaci wrote:

Stephen Eisel wrote:The federal tax on diesel is a little over $.24 cents per gallon. This would definitely help some midsize trucking companies to the tune of $250k in just one month.

How would it help? If the market will bear $3.75 gasoline, then when you remove the tax, the oil companies will simply raise the prices to pre-gimmick prices. We're still paying as much, the government is making less money and the oil companies are making more. How again is this a good solution?

LOL... The government making less money is a bad thing? Many trucking companies are struggling right now because of the high price of fuel. If they can save $.24 cents a gallon on a million gallons of fuel in a months time then this plan will definitely help them out. I talked to trucking companies every day (owners, executives, and controllers). This subject has come up and all agree that the plan would help out the industry. You are also assuming that once the tax is cut that fuel prices would instantly be increeased to match the cut.

ryan costa wrote:

Stephen Eisel wrote:

ryan costa wrote:The gas-tax holiday is a scam. It is a scam that must be destroyed! It may even be Socialism! Gas taxes barely cover roads and high way expenses as it is.

If i remember high school accounting correctly, diesel for truck drivers is an operating expense that is completely deductible anyways. Only profits are taxed. Profits = Income - expenses.

So, if your expenses increase then what happens to your profits? (that debit credit thing)

All shipping companies have the freedom to raise their rates to adjust to fuel costs. Why ain't they using their freedom? Where is their freedom?

Gas taxes should be raised to cover the Iraq War/Occupation. Gas taxes should be raised to cover all federal assistance to Egypt and Israel. It is the common sense thing to do. The corollary would be that not invading Iraq, not aiding Egypt, and not aiding Israel means lower gas taxes. Candidate A will suggest it. Candidate B will respond with "Candidate A wants to raise Taxes! Candidate A is a Liberal! Candidate A hates Freedom!".

The Oil commodity trading markets perform just like the stock markets. Everyone on the trading floor gives each other high fives at the end of the day when they manage to push the indexes up. A rumor of a threat to 1 percent of production is cause to raise prices 5 percent. high five!

Not all fuel surcharges are passed on to the customer....

Stephen Eisel wrote:Not all fuel surcharges are passed on to the customer....

What is stopping them from raising their rates? It is the immediate and logical response to rising fuel prices.

I love having nice roads and highways. Therefore the gas tax has to stay.

Invading Iraq is popular with most Americans, so they should be ok with raising gas taxes.

Stephen Eisel wrote:You are also assuming that once the tax is cut that fuel prices would instantly be increeased to match the cut.

Not assuming just applying basic economics

And what happens after summer? We go back to the same way of doing things that got us into this mess in the first place.

If there is one thing americal is lacking it is that ability to see the need to drastically change the way we do things and then act on that fact in a speedy manor. Like I said above this is nothing more than a finger in the dyke of really crappy energy policy.

Jim DeVito wrote:Am I the only one who think it is a sham? A shameless example of a gimmick.
They think you are so dumb that you will fall for such pandering. That is not going to work. It is nothing more than a finger in the dyke of horrible energy management. I am almost offended that they would try to float this idea.

You are not alone and you are correct.

I was watching Ben Stein the other night. He was the man who wrote Richard Nixon's speech on energy independence. The speech outlined a plan for energy independence by 1983. In case you don't remember that was 25 years ago and we didn't do it.

Stein said everything in Bush's speech was mentioned in Nixon's speech. He also said Nixons speech had items that were not mentioned in Bush's speech.

Our energy policy can be summed up as follows:

1. Don't drill for oil.
2. Don't refine oil.
3. Don't explore for oil.
4. Encourage consumption of oil.
5. Offer high taxes on gas to discourage consumption and provide tax dollars.
6. Offer to cut taxes on gas when gas prices actually increase.
7. Don't mine coal.
8. Don't build coal plants.
9. Dont' build nuclear power plants
10. To correct the problems caused by policies one through ten turn food into gasoline.

Jim DeVito wrote:

Stephen Eisel wrote:You are also assuming that once the tax is cut that fuel prices would instantly be increeased to match the cut.

Not assuming just applying basic economics ;-)

And what happens after summer? We go back to the same way of doing things that got us into this mess in the first place.

If there is one thing americal is lacking it is that ability to see the need to drastically change the way we do things and then act on that fact in a speedy manor. Like I said above this is nothing more than a finger in the dyke of really crappy energy policy.

Adjusted for inflation, oil prices spiked higher in the late 70's and early 80's and then drastically fell from 1982 - 1986.

Bill Call wrote:

Jim DeVito wrote:Am I the only one who think it is a sham? A shameless example of a gimmick.
They think you are so dumb that you will fall for such pandering. That is not going to work. It is nothing more than a finger in the dyke of horrible energy management. I am almost offended that they would try to float this idea.

You are not alone and you are correct.

I was watching Ben Stein the other night. He was the man who wrote Richard Nixon's speech on energy independence. The speech outlined a plan for energy independence by 1983. In case you don't remember that was 25 years ago and we didn't do it.

Stein said everything in Bush's speech was mentioned in Nixon's speech. He also said Nixons speech had items that were not mentioned in Bush's speech.

Our energy policy can be summed up as follows:

1. Don't drill for oil.
2. Don't refine oil.
3. Don't explore for oil.
4. Encourage consumption of oil.
5. Offer high taxes on gas to discourage consumption and provide tax dollars.
6. Offer to cut taxes on gas when gas prices actually increase.
7. Don't mine coal.
8. Don't build coal plants.
9. Dont' build nuclear power plants
10. To correct the problems caused by policies one through ten turn food into gasoline.

You forgot the part about invading Iraq.

in the 70s we thought it would be a good idea to help Iran get Nuclear power. This was so they would have more oil to export. Saddam Hussein was a lightweight version of the Shah, but the Shah deserved nuclear power.