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Date: | Wed, 7 Sep 2005 13:24:44 -0500 |
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Quoting Bruce Collins <[log in to unmask]>:
> John Lee wrote:
>
> > But isn't most of that tax as opposed to "market price"?
> >
>
> Part of it is tax, but the price has gone up about 30% in the past few weeks
> and the taxes haven't increased.
>
> Taxes work better than other types of "gouging" at encouraging more
> efficient use of oil and looking into alternate energy sources because that
> money doesn't go to the oil industry. Increases in market prices will give
> oil companies more incentive to boost refinery capacity and make resources
> such as tar sands more profitable. This increases the dependency on oil.
> Taxes on the other hand can be used as the government sees fit to encourage
> development of alternate sources and conservation. For example part of the
> tax in Canada (one cent / litre I think) goes directly to funding public
> transportation.
Well, if your example is true, then all the extra tax money paid by European and
Canadian consumers should have by now, after 30 years or so, paid for the
development and deployment of alternate energy resources. Instead, as you cite,
the governments have taken the money and spent it on public transportation
(which in some cases only continues the dependence on oil, buses for example)
and I'm sure if you examine very, very closely, you'll find the governments
have spent the money on pet projects to keep them in power, much as what
happens in the U.S.
As Will Rodgers once said (or is supposed to have said) we have the best
government money can buy. :)
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