BCT Editorial – 9/4/06

This page was last updated on September 5, 2006.

Pound foolish; Editorial; Beaver County Times; September 4, 2006.

Below is a detailed critique of the subject editorial.

“Americans’ failure to use gas tax to fund projects is hitting home

“Retail gasoline prices in the last two weeks in the United States have dropped by 15 cents a gallon, with the national average of self-serve regular falling to around $2.87.

“No doubt many drivers were glad to see the price dip below $3 a gallon. No doubt many realize the days of cheap gasoline are gone.

“It’s amazing how people have adjusted to the higher price of gasoline. Sure, they’ve grumbled, complained, squawked, groused, moaned, groaned, fumed, griped, bemoaned and lamented the hit their wallets were taking, but they reached in and paid up.

“To the benefit of big oil companies, whose bottom lines have boomed, and unstable - and sometimes unfriendly - oil-producing nations like Nigeria, Venezuela, Saudi Arabia and others.

“Remember what happened when some people had the audacity to call for raising the federal gasoline tax to fund research into alternative energy sources? It got hooted down.”

[RWC] If federally funded research into alternative energy sources is such a good idea, why not fund it by cutting spending elsewhere? I guess that never occurred to the editorial author. By the way, that’s how you and I “have adjusted to the higher price of gasoline.” If we can do it, why can’t government?

Western Europe has been taxing the daylights out of diesel fuel and gasoline since forever. According to CNN, taxes can make up 75% of the diesel/gasoline price, vs. a max of about 17% in the U.S.! What has been Europe’s big breakthrough? Itty-bitty cars and a higher proportion of diesel cars.

“So instead of the United States being well down the road to energy independence, it is forced to rely on the kindness of foreign oil producers to feed its addiction. If that wasn’t bad enough, some of the money countries in the Middle East (like Saudi Arabia) get from us ends up in the hands of terrorists.”

[RWC] The editorial wants us to believe throwing taxpayer dollars at the problem would have guaranteed quick success. The Times likes to forget there are really two tightly interrelated issues.

First, any solution must work in vehicles as we know them.

Second, any solution must be economically competitive with oil. An alternative fuel that costs significantly more than diesel/gasoline is not a real solution. That’s why ethanol is currently an infeasible replacement for gasoline. Ethanol would be even more expensive than it is were it not for subsidies to ethanol producers.

“Remember what happens when someone in state government raises the possibility of increasing the commonwealth’s gasoline tax to fund desperately needed road and bridge work? Sighted sub, sank same.”

[RWC] The editorial failed to mention PA’s motor fuel per-capita tax burden is already among the highest (#12) in the country. Of our neighbors, only West Virginia (#3) has a higher burden. New Jersey and New York are among the lowest with ranks of #48 and #50, respectively. Using the logic the Times applies to the minimum wage, we should drop our motor fuel taxes because our neighbors’ taxes are lower.

“Never mind that a recent report by the Pennsylvania Transportation Funding and Reform Commission determined that the state needs $2 billion to meet the needs of its roads, bridges and transit systems, or that the American Society of Civil Engineers says the state’s roads and bridges are in abysmal shape.

“Nope, instead of wisely investing in our state’s and our nation’s futures, we’d rather hand our hard-earned money to the oil barons who care nothing about us, our state or our nation.”

[RWC] Note the demonizing of “oil barons who care nothing about us.” Are we to believe the Times ownership cares about us? Why not stop buying newspapers and use that money for “wisely investing in our state’s and our nation’s futures?”

“If ever there were a case of penny wise and pound foolish, this is it.”