IMF proposes 50% gas price hike in Canada

We all know what happens when you funnel your hard-earned money into the cesspool that is Washington DC. Shovel-ready can mean some Senator's driveway in a ski resort. If they actually had lockboxes on these funds, the rest of government would starve. Hmmmm...

 

That is a terrible excuse for not paying enough to cover the services we are actually using now.

 

We can still have cars, but we might choose another form of energy to power them, if we had to pay the full cost ourselves. We won't necessarily be any poorer - think of it as a reallocation of funding sources. 'User pay' seems to be pretty adamantly defended when it comes to healthcare - what's wrong with applying it to transportation?

 

The IMF paper agrees to the common view that cheap fossil fuels was/is the engine that has driven Western prosperity. It seems fair to ask why that is not still true today, and why the converse is not true: that expensive fuel would cause a regression in prosperity.

I think I know the answer, but people like Okinawa either disagree, do not understand, or have never considered the question.

 

lol OR people stop driving 6 litre 7 seat monstrosities to drive half a mile to the shops

Our fuel costs are more than double those in the US and about double those in Canada. Life hasn't stopped, people still drive to work, people still tow boats and horses. We just have to consider our choices. Oh and people still drive V8's. Range Rovers are ten a penny.

So whilst it 'could' make you poorer, you could also choose wisely and actually end up richer.

 

Fine GC, but what about the passed on cost to other goods ? Won't it cause you all to starve ?

Oh wait, never mind

 

Nope. You've seen how fat some of us are.

Manufacturers offer people what they want. With low petrol prices in the US and even in Canada compared to other places in the World people want performance. Once that changes to fuel economy they'll offer that.

 

I've read how fat the UK populace is getting. My starve comment was tongue in cheek

 

If you Google "IMF gas tax increase" you will find IMF's 2013 gaso tax recommendation for USA for US to increase to $1.40 tax per gallon.

I don't think it's going to happen....

If Virginia is any example, Va. did indeed recently increase taxes for roads, but the repubs did not want higher gaso taxes. So we did it with sales taxes. Partially the hybrid car thing, the repubs did not like the idea of green car drivers escaping the gaso taxes. So Va. reduced gaso taxes to close to lowest in the US, and looked to general sales taxes to get the road funds.

 

The IMF has their own agenda, which of course, they want everyone to adopt. No thanks. I've been OK within higher gas taxes for a decade plus, but not in the hands of them. Amazing to see some of the budgets nowadays.

 

I was amazed there was no opposition from folks in Virginia without cars who are now paying more for food, clothing , etc so that gasoline prices are low for the drivers. It felt to me like taxing the truly needy to aid the truly greedy, but the legislation was acclaimed as a great success. Curious.

 

Paying more for clothes? I always thought the UK was expensive, especially considering our 20% vat/sales tax, but I can buy brand new jeans for £6/£12 a top for £5 a pack of 3 shirts for £10. Twenty years ago those prices would have been tripled. I guess we have to thank third world sweat shops for the lower costs but the point I'm making is that a small increase in fuel costs isn't going to make the poor without cars unable to afford clothes.

Food, again that is cheap. You guys can buy a cheeseburger for $0.50 can't you? You can easily cook good food for £10/£15 a week per person. That isn't going to change because your fuel prices increase slightly. It's still less than here - significantly. Or maybe cut back a little on portion size

It's back to making choices. Poorer people will have to give up their old SUV and buy a Honda Civic or an older Ford Fiesta just like they do here. Nobody over here buys big American semi trucks because they're not fuel efficient. Change them to more efficient versions that can still hawl 60+ tonnes and costs will reduce. 8mpg instead of 5 mpg will save tens of thousands per truck over it's life time.

It's not brain surgery. Put up fuel costs and continue to drive wasteful vehicles and it'll hurt. Put up fuel costs and drive more fuel efficient vehicles that are already available everywhere else in the World today and there's no problem.

Everyone else in the World outside American, Canada, Saudi Arabia and the UAE who pay more for their fuel still function. Why can't you?

 

The end result is if gas prices increase here because of higher taxes it will be just for more money for the politicians to blow. It will certainly not benefit the people and anyone who thinks otherwise has their head in the sand or la la land.

 

I disagree. There are lots of ways to get fossil fuels closer to their real cost and not increase political corruption.

For a start:
1. Remove fossil fuel subsidies
2. Shrink the military

 

Disagree if you like but when a politician adds taxes to gasoline it is just more money for them to blow. That is my opinion and you are entitled to your's. When has a politician done anything for you? They take care of their own rear end and to hell with everyone else. That is why congress has about a 10 percent approval rating.

 

Interesting thread. The difference between how many (not all) posters think economics work and how economics actually works is pretty vast. I certainly want a whole lot of the "good" results of smart economic changes, but the IMF proposal is not a smart economic change. It is just the same old story of fantasizing some exact & specific "tax" will change some exact & specific "behavior" with no side effects of major significance.

 

A 50 percent tax increase on gasoline will just be more money for the politicians to blow with not one thing accomplished.

 

You are not paying attention. My suggestions are not taxes.

 

Confirming the trend I was saying: Missouri apparently joining Virginia increasing sales taxes instead of fuel taxes to raise road funds,

Road taxes are rising, even in tax-averse states - Yahoo News

The opponents (of sales tax approach in MO) say we are charging road taxes to the parents buyers of Toy (tonka) trucks, while real trucks use the roads for lower taxes. Resonates with me but then again my car gets 50 MPG or thereabouts.

 

And for some of the posters, it's only half-vast.