Gas Tax Holiday a Vacation from Market Realities
Presidential hopefuls McCain and Clinton are both suggesting we take a summer vacation from collecting the federal tax on gasoline. Obama is coming the closest of all the major candidates to just putting it out there — China & India are now crazy about cars, just as we are, the world only has so much oil and the refineries can only convert oil to gas so fast.
We’ve spent nearly a century investing in infrastructure that only works when oil is cheap. Now that most Americans live in auto-dependent suburbia the world market rules have shifted. This is our new reality. There is no good short term solution. The long term solution is invest in different transit systems that move people more efficiently. Of course we are so spread out now that becomes increasingly costly.
Government is going to have to make some tough decisions. In the St. Louis region, for example, we need to rethink the idea of MetroLink being a regional system. I don’t think we can afford to build enough lines to encompass our region. We need to think at the local street level — how can mass transit get the average Joe to work, to the store and so on. We also need to think about goods — where do they come from, can we ship them more efficiently and better yet can we produce that same good locally for less?
We are in the midst of the reality we created for ourselves. No summer vacation from the gas tax is going to change that.
exactly – thats what I told MoDOT the other day. I think 2008 might be the first time that gas consumption in the US decreases from the previous year – That should be a signal to people that its high time we alter which transporation systems we are investing in.
“We’ve spent nearly a century investing in infrastructure that only works when oil is cheap.”
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You’re jumping to the conclusion that no technology will replace gasoline as the material that powers our automobiles. If I were a betting man, I would guess that as soon as the market stops buying traditional cars because of the high cost of gas, manufacturers will develop a car that runs on something cheaper — like electricity. The automobile is simply too much of convenience to fall by the wayside.
Regarding regional transit systems — development needs to occur along existing lines — here in Arlington, 80% of the development over the last 20 years has occurred on less the 20% of the land all near an existing metro line. I’ve only ridden the metro link in St. Louis twice during visits but I did notice that there’s plenty of room to develop around stations (at least that was my outsider impression). I think that would help.
Also, while we may get new fuels to power cars, I still wonder about the quality of life. People in the Washington, DC area can spend 3 hours or more a day commuting to and from work — when do they have time to fit in time for friends, family and self?
At least Obama was honest too on Meet the Press when he admited he voted FOR a gas tax holidy in the Illinois legislature. He then said, “It didn’t work and we repealed it.” So, he’s done made the mistake McCain and Clinton are proposing and knows better. Who’s the one without the experience?
There’s no magic bullet solution that’s going to work in the short term or long term. The answer will likely be a combination of many different answers. Growing our distribution network to encompass alternative fuels, more hybrids with mulitple fuel options and even straight electric vehicles. At the same time we’ll likely re-think our public transportation systems and improve performance to make those more realistic options for many people. Consumers will also be taking fuel costs more into account when it comes time to move or take a new job. No longer can they ignore fuel costs for driving 30 miles each way to work (or like an old boss of my dad’s, 100 miles, each way from Lake St. Louis to Farmington!)
Steve is right though, because of low feul costs, our system developed over the last hundred years revolving around that assumption that gas is cheap. As that reality continues to change, so must our perceptions and planning.
Oh, and I heard somewhere that physical gas consumption was actualy down 0.2% in April from the previous year. Looks like we are headed there Scott
By the way, people obviously perceive current gas prices as expensive because many of us have grown up with gas that was under $1.00 per gallon. But is it really that expensive? Doesn’t it cost less than bottled water? About as much as a gallon of milk? Think about all that gas does for you in relation to its cost. I think people will incrementally get used to the cost and learn to live with it.
…which then means we’re probably doomed to the inexorability of selfishness, apathy, stupidity and unwillingness to face what needs to be faced, unless of course, we aggressively push for alternatives that can provide our country with the entrepeneurial opportunities that a new market will provide.
A WPA scale infrastructural building program would obviously provide the sustenance that such a dramatic paradigm shift would require to prove effective, however we may lack the courage and commitment at the national level to implement such a domestic industry-reviving approach.
Of course gas is cheap at $3.59 per gallon, otherwise people wouldn’t be buying it. Yes I remember pay $013/gallon and filling my VW for $2, so what. Equally as silly as “gas is expensive” is the belief that alternatives like electricity are deliverable alternatives. Consider our outdated electrical grid that is already stressed to its limits and you’ll know that this alternative is not reliable: http://www.theoildrum.com/node/3934#more
I believe when adjusted for inflation gas prices have not surpassed prices during the early 80’s. I did this calculation when gas was 3 dollars though, and that might have changed. Either way oil is predicted to hit 150-200 a barrel by the end of the year. Alternative fuels are too expensive to produce in the short term as they are heavily subsidized. Either way that isn’t a short term solution. All of our solutions, like transit, are long term. Albeit some city dwellers can make short term changes now, like selling the car, getting a bike and a scooter/motorcycle, and taking the bus. But for those outside the City, their changes will invoke a much higher cost to their lifestyle. Yet they chose to live there. I’m glad that prices are rising as life is really becoming entertaining.
How sad that not one comment here addresses the issue of the high cost of gas and the impact on the poor except for the “I’m glad that prices are rising as life is really becoming entertaining.”
I didn’t realize that seeing poor people suffer is entertaining. Unfortunatly those at the bottom of the pay scale (or worse, no pay scale) can only afford the 10 and 15 year old clunkers that pollute beyond measure and drink gas like its water. They don’t have the luxury to go out and buy a scooter or hybrid car. They have to put food on the table. Oh and take the bus? Sure its easy to say but there are very few that would be able to take just one or two busses to their work. There is also the time commitment as well.
A tax break would benefit these people and all the others. Will it change America’s ways? No. But it will help ease the pain a bit, even if it is only for a few months.
Its going to be very interesting to see the rise in petty car breakins as the tanks are drained of gas overnight.
The inner core of St. Louis including the inner ring of suburbs could have a comprehensive transit system in 5 years. This would need to be coordinated with land planning and development of structures, basically a rezoning and recapture of a walking, transit environment for success. The surrounding city needs to be designed to support the system physically as well as running transit lines.
In other words a person should not be taking transit and then walking across vast parking lots. Transit stops should arrive among surrounding neighborhoods.
One problem with the Multimodal Station downtown is that it isn’t around anything, you can walk across the street to Savvis Center of course, but coffee shops, pharmacies and other services are generally distant and it’s location certainly doesn’t encourage a walking exploration of downtown. It just isn’t integrated well with the city.
But aside from the discussion of the practical forms of transit, the real problem are the roadblocks in attempts to achieve anything of real value in American society.
Simply stated there are people who profit handsomely the way things are done now. With their money the buy more of the same, including government policy.
They want to own everything, especially what they perceive what will make them the most money. So even if planning for transit gets to the point of implementation, those on the inside will maniuplate the transit lines to favor their position, risking the success of the transit system as a whole.
It is very serious when someone like Paul McKee can buy up the Northside, run it into the ground, plus get the state to pass a law giving him tax credits: a multi million dollar gift, so he can tear down the old city and build something in his own image.
This favoritism of the wealthy insiders is everywhere, Ballpark Village, the St. Louis Centre, Centene Corporation, West County Center and so on take public funds to varying degrees of failure (so much for vigorous capitalism)
This favoritism is the blockage preventing the St. Louisians from having the humane, beautiful city they deserve.
What is worse the press, the supposed protectors of American freedom almost totally ignore the corruption of the corporate/government connection. It is so common that it is now treated as normal.
Once Paul McKee managed to get his own personal multi-million tax credit passed, it became clear that there is no ethical basis for the society. The press all but ignores the problem.
Thus, much needed transit projects are only discussed on blogs. Oh yeah, by the way, we are at war, gas is approaching 4 dollars a gallon, global warming may be true and very serious.
But hey Paul McKee needs public money so he can demolish Old St. Louis.
He and his friends are exactly what is wrong with America. Nor can Americans sit around and wait for these people to change their minds. The only thing that fills their mind is money.
The wrong people are in power, its that simple. With a change it might be possible to begin to correct some of the serious problems St. Louisians and Americans face.
Maurice, I talk of the poor more than most. Spatial mismatch and high gas prices truly screws them over. I agree with what you’re saying, but I still find it entertaining as when these crisis situations arise real change is possible due to a catalyst which gets people off their asses and mobilized.
There’s short term and there’s long term. A gas tax holiday is a short term “solution” with long-term negative impacts – the costs it funds aren’t going away anytime soon. Expanding metrolink is a long term solution; expanding the bus system, or better yet, rethinking it to work more efficiently is a short term and much more affordable solution. Once we get our heads around the idea that the vehicle is less important than the trip, then alternative modes of transit become more realistic. The biggest hurdle for most people around here, however, is that public transit simply makes most trips 2-3-4 times longer than driving themselves. Get that down to only 33%-50% longer and you’ll see ridership explode.
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Buses need roads. Commuters need roads. Bikes and scooters need roads. As with everything tax related, if “my” taxes are funding something I want, they’re “good”; if they’re funding something I don’t support, they’re “bad”. Maintaining our existing infrastructure may noty be sexy or fun, but it’s critical if we want to keep existing and to attract new residents and businesses. What we really need is higher taxes, to fund infrastructure investments at today’s costs.
I’ve hear the next arm of Metrolink is headed down Jefferson toward So. County. Sounds like a viable addition to me. Now we’ll see how many decades transpire before I get to ride the new line.
Jim and Doug, there are no easy solutions to the mess we are in. Everytime someone puts a gallon in the tank, they just add to the problems whether it is the environment or the middle east, or or or….
Unfortunately, what king Midas once said is still true. The one with the gold makes the rules. The rest of us are just fools in the court.
That is why gas companies rake in billions in profits AND tax breaks. Why terrorists can buy the arms they need. Why…hell, pick any issue.