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Energy Sec.: Gas Tax Increases 'Not Feasible'

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posted on May, 27 2009 @ 08:08 PM
Steven Chu, previously on the record calling for higher gasoline and energy taxes to stanch consumption, tells the British press that it is not "politically feasible" for increases.

Steven Chu, US secretary of energy, on Wednesday said that it would not be politically feasible for the country to lower its reliance on oil by raising petrol prices to Europe’s levels through higher taxes or regulation.

In the past Mr Chu has argued that if the US wanted to reduce its carbon emissions, policymakers would have to find a way to increase petrol prices to levels in Europe. But in an interview with the Financial Times, he said: “At this moment, let me be frank, it is not politically feasible.”

Chu’s move against using taxes to raise US petrol prices is likely to frustrate environmental advocates who believe the only way to change Americans’ consumption habits is through higher prices.

Mr Chu was adamant that a cap-and-trade system would be necessary to cut emissions. “We need to begin to put a price on carbon,” he said.

A key question, however, was “how to help the US make the transition”, as many states are heavily dependent on coal or have energy-intensive industries.

I guess the real question now is, if you can't get away with higher taxes, what do Obama and Chu resort to now to push thier global warming agenda?


posted on May, 27 2009 @ 09:26 PM
That is all we need. We need to move into this slowly if we are going to do it. Not just raise gas price over night to astronomical levels like last year. That would put the final blow on the economy, and America would cease to exist. People do not realize that when the trucks stop, America stops.
I sincerely hope that this does not happen.

posted on May, 27 2009 @ 09:30 PM
I'm sure they will dream up some hair-brained idea. Although, the WH sees his base dwindling and he knows the only thing keeping him from getting nailed to the wall is his cult of personality he has going. Once that goes he knows he is going to get ripped to shreds.

The Dem's are losing numbers in their party almost as fast as the republicans. He is watching the American public starting to come together on the same page for the most important issue and that is fiscal policy.

Which oddly enough is one of the main issues the D's and R's play against each other on. He screwed up admitting we are broke. Most people have already known that already, but he mentioned it and completely contradicted himself by saying we need to spend even more money.

He spend a lot of political capital with the "stimulus" package and now NK is testing him and he has China, Russia, Japan, SK, everybody in that region with him and if he makes the right decision it will pay off big, but if he moves wrong he's done.

So it seems to me like the over promising is coming home to roost. With tax receipts 34% lower this year than last year which means higher deficits which means higher national debt he has backed himself into a corner and there is noway out.

He promised a tax cut for 95% of the people and that is a pipe dream. He knows there is no place to stick hidden taxes to make up the revenue. Then you have GM bankruptcy which made the market lose some today. Looks like he is running full steam and trying to go faster and now the brick wall is in sight and the throttle is stuck.

People are mad and he knows it. He also know there is nothing he can do. He is backed into a wall. Raising taxes on energy when the economy is losing 600,000 jobs a month is not smart. Raising taxes on anything in this economy is not going to go over well at all.

People know there is no way to pay for all this and lots of people are already hurting and struggling to make it as is. If he raising taxes on energy he's done.

This is funny though I'm expecting to see a lot more of this in the future. The whole well we promised all this stuff to you people, but you wont let us do it because you don't want to pay higher taxes isn't going to fly.

posted on May, 27 2009 @ 09:48 PM
Slave labor. It's the only thing left really. No one is investing in America anymore, and the US government is keeping the market up single handedly. Nothing is happening economically right now that signals and upward movement in production. People are going out to buy the essentials like food, clothing, guns, and survival gear. The government doesn't get it.

Next will be drafts and slave labor in the name of Serving America.

posted on May, 28 2009 @ 09:36 AM
reply to post by Hastobemoretolife

The problems with increased energy costs are
a) greater expense all down the line to food and clothes and housing
b) less consumption and innovation due to diversion of resources to pay for the direct energy-related costs. Markets, jobs and productivity will suffer as costs increase.


posted on May, 28 2009 @ 09:39 AM
reply to post by projectvxn
What he can't get through Congress politically, he'll simply regulate and enforce through administrative agencies like EPA, FDA, DOE and others.

New food regs are already working their way thru Congress that will add to our food bills.
"New Food Bill:

posted on May, 28 2009 @ 09:47 AM
Actually looking over the course of events for the past month it looks like the liberal agenda is to knock out the auto industry rather than tax the hell out of gasoline.

posted on May, 28 2009 @ 10:38 AM
reply to post by jjkenobi

Not only will this knock-out the "Big Three," increased energy costs will give an advantage to foreign competitors whose customers have already adjusted to high fuel costs with smaller cars and different commuting patterns.

This will have implications far beyond the environment and conservation of resources.

Quality of life and safety will be impacted, and probably not positively.



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