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The downside of a possible gas tax holiday

Both sides of the aisle are advocating the idea of a gas tax holiday this summer. Yet Clark thinks this is one of the craziest economic ideas he's heard recently. We're all hurting as we watch the dollars fly and the gallons crawl at the pump. But the gas tax holiday is a recipe for financial disaster. It would increase demand and ultimately drive up prices.

Brazil is one country that's made some smart decisions in the energy realm. The South American nation was even more dependent on foreign oil than we were during the last energy crisis in 1979. So they embarked on a program of energy independence using sugar. Our Brazilian allies now provide for 100% of their energy needs and can export additional sugar as well.

Sugar produces a fuel that's more efficient than the corn-based ethanol we use. So why aren't we getting Brazil's exports? Domestic sugar producers have gotten Congress to put up trade barriers to keep it out of the marketplace. Meanwhile, our farmers have turned to growing their corn crop for fuel use, not for food. That, of course, further drives up the price of food!

We continue to use foreign oil from those who want to destroy us, instead of using sugar from our allies in Brazil. It makes no sense to Clark.


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What others are saying

  • Sugar for Gas
    I agree with Clark that we should import sugar ehtanol from Brazil but why not start producing it here, too. Florida, Louisiana, Georgia and I'm sure other southern states can all grow sugar cane, so why not make our own gas that way unless we'll end up with the same problem we have with corn.
  • Gasoline tax
    Brazil became "independent" because they opened one of the biggest oil fields in the world off their coast!
  • Gas
    I agree with Clark!! I think it is crazy not to do like Brazil and use sugar for fuel! We need to ditch the gas and grow sugar!!!!
  • Gas tax holiday?
    Gas tax holiday? What a joke! We Americans need to down size our appetite for energy and brace for the higher costs of wasting energy. America wake up! Purchase sensible sized cars which don’t waste fuel, sensible sized homes which don’t waste energy! We Americans have been too FAT AND HAPPY for too long. This energy crisis we see today is just the beginning. This is a wake up call. Is the American consumer listening? I doubt it.
  • I guess I had the wrong idea about a gas tax holiday
    I assumed gas taxes were mainly to go to road maintenance and construction, so a tax holiday would just keep the fed govt. from being able to funnel funds to my state and city's Dept of Transportation to partially fund road projects and maintenance. I would rather keep the gas taxes on both the fed and state levels to try to keep road projects instead of letting roads fall into disrepair for lack of funding to do those projects.

    am I way off base here?
  • Sugar Fuel
    Wonder why this question is never mentioned to out leaders? I don't blame the oil companies I blame our polictial leaders who lets them get by with ripping us off.
  • Sugar Fuel
    I agree. Our country's leaders do not care about the people,period. It doesn't matter whether they are democrat or republican
  • water combustion engine
    did you heard about this technology available at you tube. type stan mayer
  • Supply and demand
    Gasoline has a very inelastic supply and demand curve. This means that it takes a huge increase in price to decrease demand. 18 cents is a drop in the bucket when you look at the supply vs demand of the fuel for our cars.
  • Will Make It WORSE, not BETTER
    A summer gas tax holiday will make matters worse not better. In the summer we driver more not less. Demand for fuel will grow. Any savings will be short lived because as demand grows, gas prices will increase. So the oil companies will get more $ because we're using more, and we'll get a whole lot less now because we suspended the tax that would have funded the repair of our streets (potholes!) and bridges.
  • a gimmick, but
    Of course a "gas tax holiday" is a "non-solution" political gimmick, but it's a gimmick by which taxpayers get a financial break, albeit small and brief, from the government TAKING OUR MONEY. Would you rather keep a little more of your own money, or not? As for me, thanks, I would rather retain even a little more of my money for a little while.
  • WEEKLY PHOTOS
    I wonder why the photos haven't been changed for so long, I thought they were to be changed every week on wednesdays
  • Gas Tax Scam
    The Gas Tax Holiday is nothing more that politicians trying to pull the wool over our eyes and claming to the masses. It doesn't address the real issue which is our dependence on oil. Personally I hope more poeple start taking responsiblity for this issue and start finding alternative means, whether it means car pooling, mass transit, electric cars, scooters, walking, etc.
  • Brazils fuels
    When I was in Brazil in 1992, you had a choice of ethanol, alcohol or gasoline when you pulled into a filling station, they were way ahead of this curve
  • Gas Tax Would Not Work
    The gas tax amounts to about 25 cents in most state. I filled up my tank today for about $3.50 / gallon. That means the tax is about 7% or $5 when I fill up my tank and pay $70. Not exactly a windfall. That would cover what Comcast just increased my rates to and buy me a Latte once a month. I don't think I will notice the tax reprieve.
  • not quite the whole truth about brazil
    You see yes the Brazilians have managed to have 100% in house energy production, some of which apparently yes does come from sugar, as matter of fact at each gas station you have an ethanol pump as an option! What is not mentioned is the huge oil find offshore that the Brazilians found, the biggest find in decades, in fact so big they are thinking about joining Opec! you see the objective way to solve the energy crisis is to leave ALL options on the table (in no particular order!), lets find ways to conserve and be efficient with what we have, lets find ways to add to what we have (different energy sources including nuclear power ask France they know) and lets start drilling in the mean time offshore or otherwise! One of the overlooked reasons for the energy crisis is that china and India have tapped into the pipeline and increased the demand hence the price! Brazil is going to add to this pipeline as a source by 2010 I believe. We can also decrease our dependence on foreign oil if we tapped into the vast oil treasures that we have here in house, Alaska, California offshore, Texas offshore, etc! Give a tremendous push to go nuclear as per France. lets be wise yes conservation is very important, efficiency is paramount, but if these are the things we hold up and don't look at the whole pie we are in for a hurt economically and as a civilization as a whole! Case and point brazil, who decreased their dependence on oil by supplementing it with sugar (ethanol) and then complementing their whole energy crisis by investigating and finding in-house Oil. FYI our top oil importers are Mexico and Canada, not the Middle East, which I believe (could be corrected) is less than 10%! Most of oil does not come from “Big Oil” it comes from government owned Oil companies (e.g. Chavez, Saudi Arabia, mexico, Kuwait, etc), which then sell to American companies.
  • GAS TAX HOLIDAY
    The gas tax holiday would work if the US Congress passed a law to prevent the oil companies from raising their prices to offset. These preying oil companies should be regulated they way that power companies are--they are spiraling the world economy out of control!

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This week's poll
The high cost of jet fuel has a lot of people staying at home this summer instead of traveling. Is there a "staycation" in your immediate future?
Yes, I just can't afford a plane ticket and/or hotel room right now.
No, I've saved up all year just to get away for a bit.
Maybe, I have to wait and see how my finances pan out.
see previous polls


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