Wetwired an Austin Texas Blog

Let’s talk for a minute about our three political candidates and their proposals for the “Summer Energy Crisis”
We have to agree that for every cause or action there is a subsequent reaction or effect. So the proposals so far actually effect us more than we expect.

McCain:
Called for several highly targeted tax cuts and federal spending initiatives. Included were a summer gas-tax holiday that would suspend the 18.4¢ federal gas tax and 24.4¢ diesel tax, and a doubling of the personal tax exemption for dependents, from $3,500 to $7,000

Clinton:
“We will pay for it by imposing a windfall profits tax on the big oil companies,” she said on Tuesday. “They sure can afford it. This is a big difference in this race. My opponent opposes giving consumers a break from the gas tax but I believe the American people are being squeezed pretty hard.”

Hillary will impose a windfall profits tax on oil companies and use the money to temporarily suspend the 18.4 cent per gallon federal gas tax and the 24.4 cent per gallon diesel tax during the upcoming peak summer driving months.

Obama:
Against Summer Holiday but for windfall profits tax.

Ok, so first of all, we decide to give ourselves a break 18.4cents per gallon. What’s the up and downside? Upside, gas may be slightly cheaper. Downside, our regularly scheduled repairs and maintenance to our bridges and roads won’t have their budget to do their jobs. Where do we get the money?

Secondly, to get the money we tax the bejesus out of the oil companies, who because of demand and the cost of a barrel of oil rising, have made more profit. Some would call it a Windfall Profits Tax. But what about the billions of dollars they lost prior to this year?

Cause:
Tax Oil Companies to Pay for 18cent/gal summer.

Effect:
Demand goes up, price of oil goes up more.

Because consumers see “oh look, we might save some money because of a fed. holiday on gas prices” the normal demand on fuel increases, thus because supply is still short and our domestic oil production is still stagnent, the price of gasoline increases.

I’d like to do the dirty math though to see what I’m really supposed to save. So being that I’m in Austin, what is that math?

Gas Tank: 18gallons
Average Tank Fills Per Month: 3.5
Cost of Premium: $3.77/gal
Cost Per Month: $237.51
Gas Holiday: .184/gal
Savings: $43.70
Cost with Savings Per Month: $193.81

So, I’d save $43.70 a month over the summer. Obama stated that it would average out to $28 over the entire Summer, so his Math is fuzzy. But let’s look at what really will happen.

Cost of Gas during the summer: $4.05
(Including Oil Companies Taxation)

Cost to Fill 18 Gallons 3.5 times:255.15
Savings: $46.94
Cost with Savings: $208.21

So now I’m paying $14.40 dollars more because of the demand of oil, inflation of the dollar, and the summer gas holiday paid for by taxing the bejesus out of the oil companies. Yeah, sure this is all a real good idea.

Where is Dennis Miller when you need him?

You know what this country needs is a jolt. Look we are fighting with these people over there, they’re our worst enemies. They live to kill us. I mean and we’ve got Alaska sitting up there and we bought it for dirt cheap, it’s loaded with oil and yet we don’t go in because there’s like five caribou in there, you know? Screw the caribou! I don’t give a shit [bleeped out] about the caribou! I say you run a pipe in there and suck it dry. The caribou can wait.

Seriously people, lets relax the tax and EPA regulations and boost our own supplies here in the US.