It’s outrageous! Gas nearly costs what bottled water does these days. It may sound counter to the problem, but we need to slap a serious tax on gas, immediately make public transit free and more available, and promote all non-petroleum means of transportation (read bicycles).In the same way McCain and Clinton’s tax cuts would have been added to oil profits, a tax increase will, in a large part, be absorbed by oil company profits.
Producers will lower profits initially in an effort to lessen the drop in sales due to a big jump in costs, and in the long term, due to lowering demand as public transit and cycling options become more plentiful and viable. I’d bet a $1 tax would add $.50 or less net gain in fuel cost over six months. Instead, oil companies are seeing record profits and our inadequate and under-funded transit systems are struggling under increased ridership and escalating fuel costs. Across the nation public transit fees are increasing, keeping people in their cars. But who among us would vote to raise the fuel tax right now? No pain, no gain. Just a thought,