On 5/4/07, jon louis mann <[EMAIL PROTECTED]> wrote: > > > http://www.wunderground.com/blog/JeffMasters/comment.html?entrynum=663&tstamp=200705 > > it seems like most countries are more concerned about > balance of trade policies than in protecting the > environment. governments tend to operate to favor > whoever is in power. we need new models. in the west > we raise interest rates as a means of slowing the > economy and thus combating inflation; yet, the > principle argument against an energy tax is that it > would be a drag on the economy. we should use energy > tax policy in the same way that we use interest rates. > why not keep interest rates permanently low and raise > energy taxes on industry when the economy becomes > overheated instead?
That would be an excessive burden on the poor. It is possible for a very poor person to live without having any loans or credit cards, with no interest debt whatsoever. But everyone uses energy to heat and cool their homes, even if only with a space heater and a window fan. And if the energy tax is levied only against industry, industry would of course pass it more or less directly on to the consumer. Wealthy and middle-class consumers wouldn't much care because they can afford the higher prices, or they might care but would pay the higher prices anyway -- look at how gasoline consumption has not been hurt by skyrocketing gas prices. So the people who don't have any economic cushion would end up paying more for the goods they buy. That's a good formula for making the poor even poorer. That's why I'm also not a big fan of Dan Minette's plan to raise gasoline taxes by 50 cents per gallon every year for the next 10 years, unless there was some offset in place for the working poor. People below certain income levels can qualify for programs like food stamps -- maybe they can qualify for a card that they could swipe at the pump that would automatically eliminate some of the taxes. Then I might go for Dan's plan. Of course, a black market for such cards would immediately spring up, and it would be extremely difficult to police. Also, by letting some people not pay the taxes you end up offsetting some of the environmental benefit of the tax. Just a few thoughts. I'm re-lurking again now. -- Mauro Diotallevi "Hey, Harry, you haven't done anything useful for a while -- you be the god of jello now." -- Patricia Wrede, 8/16/2006 on rasfc _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
