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Tom Kloza, Opis chief oil analyst, on the potential increase in gas taxes to cover the fiscal cliff.
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It more for the gas to get there.
Yeah we're looking for revenue under every rock here Washington it seriously thinking about this one.
Raising the gas tax as one of the latest proposals to rake in more revenue for the federal government.
-- closes chief oil analyst at -- and he joins us on the phone.
What do you think that this idea.
Well I I think it's probably something that sensible to look at why -- we have.
Time and common.
And we REK eighteen point four cents per gallon in federal gas tax not only that.
And -- incredibly regressive I can't imagine Democrats embrace and if this hits.
-- you know lower income Americans the hardest as on a percentage basis.
It -- hit people pretty hard in the rural south in the rural midwest.
Much less so than let's say -- new York and Washington.
But it hasn't been increased since 1993.
And so and it's -- what you -- Well contraction over you you see and other industrialized countries and here's a thought.
If you really believe and I do believe that we're probably.
Going to be much less dependent on foreign oil and have cheaper US oil going forward.
There might be -- weighted index that to sort of goes US numbers and it may be that we've already peaked in terms of the highest prices will ever pass all.
I mean why would you raise taxes on something like this that get hit everyone across -- why would you raise taxes at all but you know let's keep it today -- Why would you raise taxes when people are out -- not consuming as much because everyone's budget is stretched so tight.
Housing and home values are terrible unemployment is high as you can bring ease that gas tax I mean.
That just takes money directly away from things that people would spend money on to fuel the economy.
And puts -- a pocket of the government.
You know I would probably disagree and I would've thought that -- years ago if we would've spent 483.
Billion dollars and gasoline like we will this year.
That it would sort of put the consumer right in the toilet but it hasn't so yeah.
We shouldn't even higher if it hasn't killed the consumer having right now the average price of a gallon gas three dollars and 61 cents vs 2009 it was two dollars.
And 35 cents -- we're looking at a -- thirty higher.
In the past three years in 2007.
It was two dollars and 79 cents see you look at the price of gas where it is -- you say -- it's not killing the consumer so let's raise the price even.
Higher com.
Well I'm not talking about fifty -- -- dollar like Johnny Anderson talked about many years ago at a campaign I'm talking about something nominal and I am talking about paying one's bills.
If you look at the -- and you look at the condition of the roads in the United States spirit brief -- decrepit condition.
And because the bandage drop by 600000.
Barrels a day -- the last five or six years.
The revenue which dropped with the gasoline tax being what it's been for nineteen years so.
I listen I I don't play the act the conceit game either here gas but I think I reasonable trial.
You brought up that point because it is supposed to be used to repair roads but the last two times the gas tax -- raised in 93 and in 1990.
It was used to pay down the deficit.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Pretty much -- armed very much by hurricane sandy.
Now we don't happen to pay a lot for gasoline in New Jersey because we have low estate taxes but -- Governor Christie.
Probably would get a reasonable reception if he looked at -- raising the state gas tax and New Jersey right now because if it.
Went to funding for the reparations from sandy it might make sense so.
He can't be dismissive of it in any case.
Tom clothes that always a very Smart guy this the first time you're wrong I Campbell and Pennsylvania I love you have a great weekend and thank you for coming on -- appreciate -- -- But --
