Hello; Been seeing a possible gas tax reduction or gas card being considered with the goal of reducing fuel cost for consumers. As a purely short term patch such may help but with a built in long term extra cost. The basis of the extra cost long term has to do with what it costs a government to spend a dollar. If i, as an average Joe taxpayer, go to a gas station and spend a dollar on gas I am out that dollar. If a consumer spends a dollar on a government gas card or gets a dollar off gas tax that winds up costing the average Joe taxpayer more than a dollar.
What do i mean by that you may ask? Thing is the government is inefficient with our money in some respects. There are costs involved for government agencies to first collect money from us. More costs for whatever agencies to process the programs. Say for example a gas card becomes the method. There will be among the costs postage to mail out the cards. A tax holiday might save the postage but likely will not avoid other costs a government will incur with whatever method used.
I do not know if this is correct but recall reading that it can in some cases cost the government around $4 to spend $1. I have no confidence in that particular figure. This is one some of our members might be able to find out.
This next is not my thinking and is a comment I heard the last few days. Gas cards or tax holidays will encourage demand. It seems prices are high enough to have affected demand of late. So one of these schemes may cut three ways. Could give some commuters already on the edge a needed reprieve. May actually increase demand as some will drive more. Pretty sure either scheme will wind up costing average Joe taxpayer more in the long run. One thing either plan will not do is increase the actual supply of oil or gas.
I chose to use "average Joe taxpayer" for a reason. That being some are taxpayers while others do not pay any income taxes at all. My guess is all or nearly all will get a form of discount on the cost of gas. However, only average Joe taxpayers will be on the hook to pay the final costs. Gas taxes at the pump are truly even handed in that any and all who buy fuel pay the same amount.
By the way in my opinion a gas card or gas tax holiday is another policy decision. Go figure. Also does not change the current overall policy which has been to restrict the use of fossil fuels. As many may have figured my take is changing from the anti-oil policies into pro oil policies will be a much bigger help.
What do i mean by that you may ask? Thing is the government is inefficient with our money in some respects. There are costs involved for government agencies to first collect money from us. More costs for whatever agencies to process the programs. Say for example a gas card becomes the method. There will be among the costs postage to mail out the cards. A tax holiday might save the postage but likely will not avoid other costs a government will incur with whatever method used.
I do not know if this is correct but recall reading that it can in some cases cost the government around $4 to spend $1. I have no confidence in that particular figure. This is one some of our members might be able to find out.
This next is not my thinking and is a comment I heard the last few days. Gas cards or tax holidays will encourage demand. It seems prices are high enough to have affected demand of late. So one of these schemes may cut three ways. Could give some commuters already on the edge a needed reprieve. May actually increase demand as some will drive more. Pretty sure either scheme will wind up costing average Joe taxpayer more in the long run. One thing either plan will not do is increase the actual supply of oil or gas.
I chose to use "average Joe taxpayer" for a reason. That being some are taxpayers while others do not pay any income taxes at all. My guess is all or nearly all will get a form of discount on the cost of gas. However, only average Joe taxpayers will be on the hook to pay the final costs. Gas taxes at the pump are truly even handed in that any and all who buy fuel pay the same amount.
By the way in my opinion a gas card or gas tax holiday is another policy decision. Go figure. Also does not change the current overall policy which has been to restrict the use of fossil fuels. As many may have figured my take is changing from the anti-oil policies into pro oil policies will be a much bigger help.
