What Happens When Oil Prices Go Down?
Your editorial “Falling Oil Prices Can Hurt Too” (Dec. 11) is totally irrational when you suggest that a 10 cents per gallon tax on gasoline to offset falling oil prices would be beneficial to our nation by inhibiting increased demand and producing added revenue for our wasteful federal government.
First, such a regressive tax would hurt the poor most of all.
Second, at present gasoline prices, driving habits are firmly entrenched, RV’s clutter our highways, gas guzzlers sell briskly. I don’t believe demand would increase at all if gas prices fell 10 cents a gallon, only our state Board of Equalization would suffer from a declining sales tax revenue from gas sales (6% on top of both federal and state road tax).
Third, oil exploration will decrease dramatically as prices fall (if they truly do) and in a very short time our imports will rise even more (presently over five-million barrels a day) and we will be back under the control of the Arab nations because of decreasing domestic production.
Better yet, let’s tax our daily newspapers 25 cents a copy. This would decrease their circulation and their need for energy to produce and distribute their publications. This makes about as much sense as your proposal.
ROGER CHAFFIN
Huntington Beach
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