GOP Tax Plan Could Boost Prices At the Pump

[Charlie Brown]

Source: Wall Street Journal

A proposal aimed at encouraging production of U.S.-made goods could push domestic oil prices higher and leave consumers paying more at the pump, some energy economists say.

“Border adjustment,” as the provision is known, would for the first time levy corporate taxes on imports to the U.S. while exempting exports from U.S. tax. It employs a concept commonly used in other countries’ value-added taxes.

Some traders on Wall Street are looking for ways to profit from the potential change in the tax regime, which some analysts say could cause U.S. oil prices to come more into line with international prices.

Read more: http://www.wsj.com/articles/gop-tax-plan-could-boost-prices-at-the-pump-1482411601

[jpak]

1. Higher gas and fuel oil prices - how "populist"

Who makes the money on this?

[Bear Creek]

2. Cost more

Seems funny that the conservatives cry about paying taxes and then the republicans get in they increase the amount of money they have to pay out. They want the gas to be at the same level as Europe without us getting the benefit of a national transportation system and health care. They wanted at least $ 6.oo/ galleon.

[cstanleytech]

5. Not to mention they dont want to pass on the benefit of higher wages which alot of people in

Europe enjoy which offsets some of the cost of higher fuel prices.

[FBaggins]

3. Good.

Increased prices should reduce gasoline consumption, but without too much economic pain (because current prices are so low)... While simultaneously boosting federal revenues and domestic production at the expense of OPEC and Russia.

The only real downside is the environmental impact shifting from the Middle East to fracking areas...But that's probably a good thing long-term

[cstanleytech]

6. There is another downside and it for people like myself who live on a very fixed and limited budget

but have long commutes anywhere.

[ProfessorGAC]

8. Oh Come On!

That premise is close to mythological. The people hit hardest by rising fuel costs are those with the least means, and by and large those people don't do recreational driving. They use their cars for things that MUST be done, hence their fuel purchases are not discretionary.

There aren't really that many people who can easily reduce consumption just because gas prices went up. That barely took place when the gas hit a national high of $4 per gallon.

This is a regressive taxation scheme, plain and simple. And, they don't have to worry about bad inflationary reports, because the main number reported for that (CPI) does not include energy costs. So, they raise revenue on the backs of the least and then can crow about their economic and geopolitical success.

And you support that?

[geek tragedy]

11. This would disproportionately hit people who live outside cities with public transportation

options.

In other words, Trump voters, who dominate exurban and rural areas.

[ProfessorGAC]

13. So We're Rooting for Poor People to suffer?

Out of revenge?

[dionysus]

14. I see a lot of that these days. We must not become that which we hate. I've also

Seen people take some wierd positions either because of what trump said, and sometimes bernie. Reflexively opposing things out of spite where it doesn't make sense.

Apparently trump stole some of bernies populist ideas (although he would just be paying lip service), and said something about the system being rigged towards the wealthy. Which is well known' as leveling that pkaying field; regulating business to play by fair rules and pay their daur share of taxes is a major goal of liberals.

This caused several posters in the thread to suddenly become good little friends of capital scoffing at the notion of a tilted playing field as both false and ridiculous "scam" of the "far left".

And then some folks have resurrected the hippie punching practice of ridiculing the "far left", as if providing health care and higher education for our people are radical ideas that aren't commonplace in every other industrial nation.

[ProfessorGAC]

20. Same Page

Thanks. I'm very distressed by the other responses

[geek tragedy]

15. We recognize it's not unjust for those who made these

policies possible to bear the burden of their enactment.

Not worth celebrating, but if someone has to feel the pinch might as well be them.

[ProfessorGAC]

19. Like Me?

I am rural
Yeah I have a couple million so I'm not talking about me
But I have friends and allies here and you're wishing bad on folks who don't have my resources out of revenge
Proud?

[geek tragedy]

21. Not wishing revenge. Just observing that

the vast majority of those who would bear the brunt of this policy are the very people who voted to make it possible.

[FBaggins]

16. So we're suddenly ok with environmental destruction because avoiding it is harder than ignoring it?

Both you and geek tragedy have entirely valid concerns here (and yes, gasoline demand is not as price-elastic as we might prefer)... but liberals have favored higher gasoline taxes for decades. That's why prices in Europe are so high.

It would be better under a Democratic administration/Congress so that offsetting credits could ease the impact on the poorest, but that only reduces the attractiveness... it doesn't eliminate it.

I also like that it would encourage domestic production (with both the ecological costs and geopolitical benefits).

[ProfessorGAC]

18. Irre!evant

Nothing to do with what I said
Try to keep up

[marble falls]

23. Everything has to be vetted by you, doesn't it. Never offer a figging fact, just signify. Talk ....

about solipsism.

[TeamPooka]

4. Just like the Bush years gas prices will go through the roof It's part of the GOP gouging of America

[neohippie]

7. A rise in transportation costs

will cause prices to rise across the board because the shipping costs impact retail prices

[catsudon]

10. airline tickets

i'm still not happy that airline tickets have fuel surcharge and never remove it when fuel price drop.

[catsudon]

9. well well

heh, i remember some right wing people said gas price would jump when obama takes over... and look what happen.

[jmowreader]

12. Help me out here, guys

We're about to be faced with an administration with three oilmen in it, and you think gas prices are going to go down?

[Norbert]

17. We are aleady 50 cents higher than Nov 8.

[TexasBushwhacker]

22. I noticed that too

Here in Houston you could find gas for $1.89. Now it's up to $2.29.