Which would be better, a $500 a year tax cut, or gas for $1.75 per gallon?

Question

How has Bush's devalued US dollar played a role in gasoline prices?

regerugg (below) Welcome. Looking forward to debating with you.

Answer 1

Definitely the cheaper gas.

People don't realize that expensive gas is not just directly more expensive for them, it also raises the price of anything shipped by truck, which in the US is -everything-.

The double-digit inflation we had in the 70s was the result of two things, (1) massive debt from the Vietnam War which made the dollar cheaper (deja vu?) and (2) a sudden rise in the cost of gasoline. Every company that had to raise their prices to cover the increased cost of transportation, while they were at it they raised them a little for themselves. So we had increased profits but high inflation/unemployment, etc.

Not to mention that the tax cut brings bigger deficits, which act as even more of a load on the whole economy. The biggest item in our federal budget is interest on the debt. Just the interest on our national debt is equivalent to all the income taxes paid by everyone living west of the Mississippi.

Answer 2

Financially, for anyone with a meaningful commute, the reduced cost of gas would be better.

Another important question, though, is which one is within the control of the government. Gas prices are impacted by gas taxes, refinery capacity in the US, and the global price of oil. The price of oil, in turn is impacted by demand from the developing world outpacing supply, and by fear & instability in the middle east which feeds speculation.

While the government can attempt to influence some of those factors (have the EPA greenlight a new refinery after 30 years, try to 'stabilize' the middle east (yeah, that's working), or cutting gasoline taxes), it can't actual set prices (that's been tried, it just creates shortages).

But, the government /can/ cut taxes. It'll probably just increase the national debt, since our government has proven incapable of cutting spending, but it can be done.

Answer 3

I prefer a 3rd option - a $500 a year investment per tax payer in wind/solar/hydro, instead of the tax cut. Gasoline prices wouldn't be an issue if we didn't use gas.

Answer 4

Without a doubt, gas at $1.75. At the current gas prices and at what they are predicted to become, it would take no time at all to eat up the $500 tax cut. As far as Bush is concerned, I don't know anything about the dollar effect on gas prices, but I have no doubt he is helping out his oil buddies. He is a big supporter of oil and big business and really doesn't give a crap about the everyday worker, funny how without us big business would collapse. I would love to see those big execs get back out and get their manicured hands dirty and callused.

Answer 5

Gas. I don't pay taxes, so there is no benefit for me having a "tax cut."

High gas prices hurt everyone because they have a trickle down effect. Tax cuts have less of a positive effect on tricklke down.

The devalued dollar plays a huge role, in that the purchasing power of the dollar has gone down, i.e., less crude oil for the same dollar, and, as the dollar purchases less (including materials and workforce), gas prices have to increase to compensate for this inflated cost.

While there are people who have little gas consumption, the high cost of gas filters down to everything, including higher prices for food, clothing...everything. A tax cut is not going to lower the cost of eggs or milk, but lower gas prices will.

Answer 6

Let drill in every place there is oil and then put wind mills off of Martha Vineyard where the Kennedy's say not in their back yard.

And if you want to do away with tax cuts then you want more unemployed. But you are not smart enough to know this seeing you have never worked a day in your life just off welfare.
Get a life commie.

Answer 7

Average driver might save $15 per week and at the end of the year = $780; Opposed to $500 earning 5% becoming $525.

Answer 8

Devalued dollar is good to a point. I am doing more business overseas then I ever have. I do not use much gas and do not buy crap I do not need so not greatly affected by rising oil prices. I'll take the tax cut.

Answer 9

1.75 per gallon....


my family(3 cars)
vehicle1 1 hour and 10 min drive a day.
vehicle2 30 min drive a day
vehicle 3 1 hour drive a day

and we spends more gas that $500 on gas in a little under 2 months.


and thats is about the same for most families.



i would 100% go for the 1.75 a gallon...

Answer 10

$1.75 per gallon. The higher gas prices affect everyone because of higher transportation costs for food and goods.