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Thread: Gas Tax

  1. #1
    Constant Bitrate JaymzRR's Avatar
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    Gas Tax

    I heard an interesting view today while I was out at one of our testing labs, construction really does keep A LOT of people employed. After he mentioned that I was thinking, maybe gas taxes aren't so bad in the end, the extra money towards road production would mean more paychecks going out giving more money to people to buy things which generates more state tax and in theory could lower some taxes maybe?

    It would be interesting to see some numbers run. I mean here in WA they started, and IT FLEW OFF, a petition and movement to undo the latest gas tax plans and well it looks a lot like it will pass, and so the governor has halted all state-road work I hear because it could mean some severe budget cuts...

    anyway, just thought it was interesting, I listen to a lot of talk radio and I haven't heard this idea before so yea...

  2. #2
    Low Bitrate Strgazr's Avatar
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    We have a vote next week on a new gas tax to help fix the state roads and bridges here in Oklahoma. Our roads are supposed to be some of the worst in the country. I have a very lowered Honda CRX and live in the country, but I never thought the roads were all that bad. Anyway, I think I am actually going to vote yes for the tax. The bridges are in bad need, and like you said, it actually adds alot to the economy by keeping more people working. And, construction jobs are good pay.

    Leslie

  3. #3
    Constant Bitrate JaymzRR's Avatar
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    Well also varies by area, I think we have the second highest gas tax in the country second to CA?

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    The theory you are describing is based on Keynesian economics. It anticipates a multiplier effect on the economy due to greater employment. In part, the theory say that government intervention is required to ensure higher employment and create more wages, gives more taxes to governments, creates greater demand. The criticism of this policy is that it leads to crowding out of entrepreneurs and capitalists, reducing overall economic output and reducing incentives for investment.

    The theory was widely accepted and used until the early 1970's when unemployment rose, reducing incomes yet inflation continued to rise. This required policies of both expansion and contraction to be applied, a clear impossibility. Since then, the full employment model has been largely abandoned and government intervention in economies has been substantially reduced in favor of monetarism, or control of the monetary supply which is one of the focuses of the Federal Reserve.
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    Quote Originally Posted by Bugbyte
    Since then, the full employment model has been largely abandoned and government intervention in economies has been substantially reduced in favor of monetarism, or control of the monetary supply which is one of the focuses of the Federal Reserve.
    As well as in favor of random product quotas and taxes on imports, can't forget that.
    I have found you an argument; I am not obliged to find you an understanding.

  6. #6
    My Village Called 0l33l's Avatar
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    Problem that after the construction is over, the workers will be unemployed, or they will have to continue with the gas tax, unless you have an endless supply of bad roads.
    Usually with these taxes, once you accept them, they will be the there for a long time

  7. #7
    Constant Bitrate JaymzRR's Avatar
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    Bug that may be true for nationwide politics etc, but it works on a small level.

    Ol33l, apparently you need to visit WA. We have an endless supply of bad roads =D Well maybe thats not right, but our supply of bad roads is mostly ginourmous projects that are ~10 years anyway, and we have plenty of those lol.

  8. #8
    My Village Called 0l33l's Avatar
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    Quote Originally Posted by JaymzRR
    Ol33l, apparently you need to visit WA. We have an endless supply of bad roads =D Well maybe thats not right, but our supply of bad roads is mostly ginourmous projects that are ~10 years anyway, and we have plenty of those lol.
    Define bad roads

    Hell, we have a few bad roads, but I wouldn't pay more every time I fill up to fix em.

    For those that live in LA, take the Highland offramp when going on the 101 south. If you take it fast enough, you'll probably get an inch of air

  9. #9
    Constant Bitrate JaymzRR's Avatar
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    Well we have a giant section that needs to be replaced from our earthquake damage. I am not 100% sure where it is or the extent, but basically the current winnig plan is some elaborate tunnel with a new sea wall and the first estimate was something like 5 million? But most were saying in other similar projects (apparently lots of issues with sea walls etc.) they tend to double pretty quickly.

    That and we are redoing some floating bridges and whatnot. Plus lots of development. My aunt's dad (long way: my mom's brother [uncle]'s wife's dad, but we are all close on that side) purchased not long ago the *last* piece of commercially zoned land in Bellevue. Which pretty much means its time to start building everything up lol. Look at the lincoln square going up in bellevue, WAMU has a 54 story building or something like that going in Seattle. There is a TON of work ALWAYS going on. Seattle is doing this huge sound transit project.

    I should know a lot more being in the biz but eh I stick to what I do.

  10. #10
    My Village Called 0l33l's Avatar
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    What's weird in LA is that the roads in the valley are excellent, while roads otherwise are ok. The suburbs have great roads... and higher speed limits

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