Alex_G

Cheap Crude: A Flash in the (Oil) Pan

I hate to say it, and people will jump on me for it, but the obvious solution is to raise Federal gas and diesel taxes. A lot. This does 2 very important things:

1) Provides much needed money for mass transit and infrastucture projects and

2) Helps keep demand down in the US, which uses 25% of the worlds oil output, mostly for transportation, which will keep oil prices much lower than they would be otherwise.

I would much rather have the money flowing to the Treasury in the form of fuel taxes than to the middle east in the form of higher fuel prices.

Because this would be such a regressive tax, maybe we could use the extra tax money to stretch out the 15 and 25% tax rates.