By Noel Bagwell
Dec 12, 2008
Michael Kinsley, writing for TIME magazine in his article “Black Gold” wrote:
Yes, this is yet another plea for that hoary notion: a big energy tax. Just five months ago, we were essentially paying a tax of $95 per bbl. That’s the difference between what oil cost then and what it costs now. This was a “tax” whereby the revenue went into the pockets of oil producers–about two-thirds of them foreign countries and one-third fellow Americans. Isn’t there something better to do with the money?
This idea always comes up and never goes anywhere. That’s partly because of our general loathing of taxes and suspicion of Washington and partly because the idea tends to come up when energy prices are rising and people find it hard to believe that it would be good if they rose even more. But a couple of things are different now. First, we have experienced the high energy prices that people in most of the rest of the world already live with, and we know we can live with them too. Four-dollar gasoline is no longer unthinkable.
Second, this is the perfect moment for the other part of many proposals for an energy tax, which is to give the money back to people by lowering the payroll tax. The payroll tax, or FICA, collects about 15% of your wages or salary–half from you and half from your employer. It is expected to bring in close to a trillion dollars in 2009. Using our windfall from plummeting crude-oil prices alone, we could cut the FICA tax by more than half. Including other forms of energy would bring in even more.
Seriously?! There is a reason this idea “never goes anywhere”:
IT’S A BAD IDEA!
This idiot, Michael Kinsley, is saying, “Hey, great, gas is down to ($1.49/gallon in Raleigh, NC, today), so let’s slap voters with a great big tax to bring it back up to $4/gallon, because we’re all ‘used to’ paying $4/gallon like ‘most of the rest of the world’.”
How stupid is that? Because we’re used to it? We’re not used to it! I’m not used to $4/gallon gasoline, and I never will be as long as the camel jockeys in Iran and Dubai are paying $0.30 per gallon! I have news for you, Mr. Kinsley: Four-dollar gasoline is still unthinkable!
Mr. Kinsley further tries to sell the absurd idea of a massive energy tax on gasoline and “other forms of energy” as well by saying that the “half-trillion-dollar windfall” could be used to cut the FICA tax, but that’s disingenuous, because he says, “For most Americans holding jobs, FICA now takes a bigger chunk of their income than the income tax itself.” This is not the case, because many of those “Americans holding jobs” don’t pay any tax at all – they get the money they pay in back in the form of an income tax refund check.
Mr. Kinsley says that cutting the FICA tax will create jobs, but that, too, is wrong, because it’s not FICA that keeps employers from hiring workers. It’s usually the real costs of those employees (benefits, like healthcare, pensions, etc.) that deter hiring. If you want to create jobs, start regulating price caps for the healthcare industry, and pass legislation to stop frivolous law suits that drive up the cost of malpractice insurance and doctors’ fees to pay the outrageous malpractice insurance. Do things like that. Cutting FICA is like pissing in the ocean, and paying for the cost of cutting FICA by raising the price of gasoline on purpose with a 236.69% tax is like pissing upwind in a hurricane.
Gasoline, right now, is right around $1.69 per gallon. adding a 236.69% increase to the price of gasoline to bring it back up to $4 per gallon just to raise a half-trillion dollars for the government to waste is absurd, and it’s something nobody wants… nobody in their right mind, that is.
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