The Signal

Issue date: 11/19/08 Section: News

Media Credit: Chris Dunne Gas prices fall below two dollars at a Turlcok gas station.

Gas is now cheaper than it has been in years, averaging at $1 less per gallon than it was two months ago. President-elect Barack Obama offers promises of huge energy reforms and tax cuts while encouraging citizens to do their part regarding energy consumption, according to a recent interview with CNN.

However, statistics show that despite drops in fuel costs many Americans are not spending their savings on the stock market or even essential goods such as food. Instead, they are driving more and buying more trucks.

Many economists are suggesting a higher federal gas tax will bring in much needed revenue to the federal government and will help citizens maintain energy efficient lifestyles which were adopted over the last several months out of necessity.

As a nation, the United States has enjoyed relatively low gasoline prices compared to other democracies in Europe and Asia. This is partly due to gasoline taxes in those countries.

Revenue from gasoline taxes in Europe is used to provide nationalized health care as well as funding and maintaining an effective public transportation system which serves to keep demand for gas low.

Despite comparable population expansion in France and England from 1980 to July of 2008 the United States gasoline consumption has gone up 21% in the same period according to the Energy Information Administration. A similar gas tax would yield substantial results in a US market.

However, some economists disapprove of any new gas tax. Chris Lafakis of Moody's Economy.com said "It wouldn't be the most efficient way to decrease energy demand."

Also gas tax could be crippling to people who commute to school and work, particularly the low and middle class who feel the effects of high gas prices more acutely than the wealthy.

Whether or not such a law would be beneficial to the American people is irrelevant if legislators are too afraid to propose or approve it.

With newly empowered Democratic Party (largely elected on the platform of decreasing taxes to the middle class and stimulating the economy) it seems unlikely that legislators will risk their newly acquired favor on such a potentially unpopular bill.

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