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BUDGET: Smarter spending needed, not higher gas tax

Letter by Darren K. McDonald, Puyallup on Oct. 10, 2011 at 2:13 pm with 4 Comments »
October 10, 2011 3:06 pm

Katie Baird, an associate professor of economics at the University of Washington Tacoma, suggests raising the gas tax to fund government spending on social services (TNT, 10-9).

A few years ago the housing market collapsed ending our access to capital about the same time oil companies started raising the price of fuel. At the $4 threshold, many had to pick between eating and driving. The consequences from raising the price was decreased sales and plummeting gas tax revenue.

You can’t ignore the logistics chain that brings our consumables to market. If you raise the price of fuel, retailers will pass the additional costs on to their customers.

Will cyclical inflation help fund social services for the poor? With record unemployment and so many living at or below the poverty level, raising taxes and diminishing buying power is a recipe for disaster.

We read about $10,000 dollar desks, $100,000 trips to Europe and $50,000 Mercedes lottery vans. I say better management of the funds available to the government would be a smarter approach. But then again, I’m no professor.

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Leave a comment Comments → 4
  1. taxedenoughintacoma says:

    Not one more penny of new tax until state and local governments learn the same lesson we have to live by, LIVE WITHIN YOUR MEANS!!!!!!

    NO NEW TAXES

  2. steilacoomtaxpayer says:

    This “economist” is so far left we can expect nothing less than tax + spend articles from her. I do hope she gets fair market value for her work, zero.

  3. A tax on fuels is usefull not so much as a source of spending, but for encouraging reduction of fuel consuption and keeping fuel prices down. This will save money (and the tax is not lost, it goes back to the consumer/taxpayer, although not necessarily in the most efficient way).

  4. theglovesRoff says:

    That my friends is what we call social engineering. You don’t like a certain behavior (like driving evil SUVs) you impose economic hardship on the person to change his behavior to fit what you desire it to be.

    Yet you do what you want.

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