Thursday, May 10, 2007

Lost touch with the real world

http://www.startribune.com/587/story/1173407.html House-Senate conferees OK nickel gas tax increase - The increase, designed to increase gradually to 7½ cents, anchors a new try at funding roads. Pawlenty vows to veto it but could face an override.

Pawlenty's spokesman, Brian McClung, said it will be vetoed. "Coming forward with a big gas tax increase on a day when the gas price in Minnesota is $3.02 a gallon shows these DFLers have lost touch with the real world," he said.

I HAD to snicker at this great quote from the Governor's office. I guess the "real world" means "political world".

Gasoline tax is $0.20/gallon, out of say $2.80/gallon average cost, or 7%. It hasn't been raised since 1988, and inflation factor about 1.7 since 1988, so 1988 tax would be equivalent to $0.34/gal tax in 2007 dollars. Plus the gas tax only covers a small fraction of the annual cost of road and bridge maintenance.

It's sort of funny. The BEST reason against the gas tax is that it is "regressive", hurting poor more than rich, so that's a democratic position. I guess the governor wants to BOND road projects, but even so I don't see a conflict between bonding and raising tax to pay for the bonding!

It's strange - if the gas tax can't be raised partly because of the high prices, why not call for the elimination of the gas tax? I mean perhaps the republicans WOULD support this crazy idea.

As always, my concern is most on conservation. Higher prices mean higher incentive for conservation and alternative fuels. I'd add a $0.50/gal gas tax, and remove the ethanol $0.50/gal subsidy to make sure ethanol is economical.

Overall my conservation issue is a federal one. I admit the state really can't do too much to conservate or positively affect consumption.

I think everyone has lost touch with reality - that we're 60%+ dependent upon imported oil from many undemocratic countries that may not even like us very much. It's crazy to wait for the next oil crisis, and I think someday soon $4/gal gas will be a bargain!

Maybe the republicans will see reason and help override the veto. And the antitax governor can gain his political points for the little guy to spend another year commuting 50 miles to work each day. And we'll all live happily ever after.

The end

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