Tuesday, June 19, 2007

Sure to Ruin Your Day

Tim Haab presents a real argument for gearing any Carbon Tax to the level of Income, else Consumption will continue, and potentially grow, because the Carbon Tax will not keep up with Income growth. Here is the immediate dilemma: such Carbon taxation will work effectively only when there is a consistent Equality of Income. Carbon taxation consistently impacts lower Incomes to far greater degree than it does higher Incomes. The first Question is: Can We allow Carbon taxation which is Draconian to lower Incomes, simply because it may impact the Gas Consumption of higher Incomes; considering that higher Incomes are the vastly greater Consumers of fuel? The next Question states: Isn’t there a better Substitute taxation to reduce Energy consumption than Carbon taxation?

Combine the two Questions, and We soon find the impact of Taxation must be placed upon the greatest Consumers, not on Those who already economize on their Energy consumption due to lack of Income potential. Gasoline is currently distributed in 3 Grades, and therefore, Service stations cannot claim a differentiation in Pricing will not be accomplished. I would suggest Gas Pumps be altered to sell Economy Vehicles Gas, Luxury Gas, and Commercial Gas. Prices would be altered to reduce inefficient consumption practice, and Pump nozzles somehow modified to prevent wrongful consumption. Economy Vehicles Gas would be relatively untaxed, Commercial Gas would be taxed to curtail nonproductive consumption, and Luxury Gas hiked up to slow down the Soccer Moms.

Current Electrical rates are set to grant heavy Consumers an advantage in Price in their consumption. This Preference should be sharply restricted by Federal regulation. Only Production facilities requiring heavy Electrical usage in industrial production processes will be allowed preferred Rates. An Office which burned $4000 of Electricity per month, can afford to pay $4000 for that Electricity. Likewise the same can be said for Bars, Nightclubs, Casinos, and Sports fields. This type of regulation actually brings benefit, as normal Users will find some marginal reduction in their Electrical Costs, as the Normal Costs are spread uniformly.

The above Initiatives will reduce Energy usage to greater degree than normal Carbon taxation, and may even be some benefit to the Automotive industry, if they are charged with Recalling all vehicles and refitting them with proper opening gas tanks. Consumers will accept the necessary payment for the Refitting, if they are forbidden to purchase fuel for their Vehicle without a Refit. Wondrous are the Ways in which you can gain the Hatred of your fellow Americans. lgl

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