Sunday, June 8, 2008

Gas Price at $4 per gallon now

Whether Americans know it or not, gas prices (a majority part of which is oil price) in America is at the mercy of global demand and cartel practices by less-than-friendly foreign powers. Americans can not lower oil price, except by taking control through raising the tax on it and/or reduce their dependencies.

Congress' proposal of a complicated carbon tax is a hidden way of taxing gasoline. But it does not go all the way, and its complication is itself an invitation for corruption. Worse once put into execution, if it does not work, it's hard to roll back. A simple gas tax hike (rolled out over several years), with corresponding public transportation/alternative energy investment and income tax rebate, will do a much better job.

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