Who we cast our vote for in this upcoming presidential election is a tremendous responsibility. We, as a nation, are going to decide the direction for the world for our generation and for countless generations to come. The energy crisis has been a top priority for me as I weigh my decision for whom I should cast my vote. Senator McCain has impressed me thus far. During a Republican debate he proclaimed that he will lead an Apollo program to become energy independent. As a candidate that is known for doing what he thinks is right, even if it means crossing party lines, I believed him. Then in an interview with Sean Hannity, McCain declared with vigor and determination, “I believe I can inspire Americans to serve a cause greater than their self interest!” Yes! As my cynicism starts to slowly fade, I finally begin to believe that we have a man that can lead us to fight the great challenge of this century. We finally have a man that will ask Americans to sacrifice for their country and for the good of others. We finally have a man that will tell us what we need to hear, like our oil addition is decimating our economy and endangering our homeland, instead of what we want to hear. Unfortunately, I could not have been more mistaken.
This week John McCain announced his tax plan for if he becomes president and one of the main components was a “gas-tax holiday.” He would suspend the already puny 18¢ tax per gallon of gasoline and the 24¢ tax per gallon of diesel between Memorial Day and Labor Day. So I guess his great strategy for leading us away from our dangerous addiction to oil is to make it more affordable. I guess when he asked people to serve a cause greater than their self-interest, the cause he was referring to was the yachts for Saudi princes and the military of Hugo Chavez. A tax holiday doesn’t make any sense. If someone if your family is struggling from an alcohol addiction, do you give them money to make the alcohol more affordable? When your best friend is trying to quit smoking, do you put the cigarettes in closer reach? No!
Senator McCain, I have a much better tax plan for you. My tax plan will achieve your objective of giving the average American a break from these high gas prices. My plan will provide a tremendous economic stimulus for this country. More importantly, my plan will help this country build the foundation it needs for long term energy, economic and environmental security. Now I will warn you, it might not sound good at first. You might have to “inspire Americans” to buy into it, but for the good of this country, it will be well worth it.
Add a $1.00 tax to every gallon of gasoline and a $0.50 tax to every gallon of diesel. We are going to call this tax the “Patriot Tax.” Put every cent you get from this tax in a fund called the “Patriot Fund.” This fund will NOT be used for ANY government activities. At the end of the year, everyone that files a tax return will get an equal portion of this fund, which we will call a “Patriot Rebate.” This tax is revenue neutral! So the mill worker that has to buys a $18,000 Honda Civic, and gets 30 miles to the gallon, will get back far more from the Patriot Fund than he put in, while the ritzy CEO in Beverly Hills who drives a $60,000 Hummer, will pay far more into the fund than he gets back. Such a plan will have several very positive effects. It will, on average, give more financial assistance to those that need it most. It will encourage business to convert their fleets to alternatives, such as natural gas, which will have an economic benefit to them in the long run when they are paying $1.36 a gallon instead of $4.36 a gallon. It will decrease the demand for oil in its largest market, the United States. It will give less money to tyrant such as Hugo Chavez and Vladimir Putin with which to stomp our democracy. It will shift hundreds of millions of dollars from the Saudi and Iranian economies back into the American economy. It will give American businesses the incentive they need to push alternatives such as natural gas, biodiesel, ethanol, electric and hydrogen, all of which are domestic. It will give America a leadership role in fighting the battles of the 21st century such as Islamic Fascism, global warming, and economic depression. Most importantly, it will make this country and this world better for our children and our children’s children.
Senator McCain I know it is more difficult to make the argument I just laid out than to simply say, “no gas-tax.” I know it will take more time and energy to make this case to the American people, but I believed in you. Inspire us to serve a greater cause. Lead us into a cleaner, safer, and stronger 21st century. Show our friends that we are ready to lead and show our enemies that they can not break us. There is no greater legacy you can leave for our country and no single act that can make such a dramatic impact on our prosperity. I believed in you because I thought you would do what you think is right. I believed in you because I desire the spread of freedom and democracy to every corner of the globe. I believed in you because I was hoping that you were not just another politician. Make me believe again.
March 1, 2009
Fuel for Thought
Break out of the oil box
As President elect Barack Obama and the new elected Congress are preparing to govern, America's auto industry appears to be on its death bed. Barring decisive action GM, Ford and Chrysler might soon slide into bankruptcy. Coming in the midst of one of the worst financial crises in our history, the demise of the automobile industry could send the economy from its current recession to a full fledged depression. If Congress and the Administration decide to use more taxpayer money to try and save Detroit, taxpayers must get something in return. Specifically, any bailout should include an open fuel standard so that most new cars sold in the U.S. will enable liquid fuel choice. It costs automakers about $100 per car to make a vehicle fuel flexible, so it can handle a variety of alternative liquid fuels in addition to gasoline, giving consumers choice at the pump. Fuel efficient technologies are great but they are not enough: efficiency will do little to reduce oil's strategic value. With this year's high oil prices U.S. gasoline demand dropped by 10%. What was OPEC's response? The cartel cut production by 1.5 million barrels per day. Indeed, when we drill more, they drill less, and when we use less, they drill less. As long as oil is the only option in the transportation sector, OPEC will sit in the catbird seat. Detroit's automakers have repeatedly said they are willing to commit to make 50% of new cars sold in the U.S. be flex fuel vehicles by 2012. As the Big Three come to Capitol Hill on bended knee to ask for taxpayer help, the least Congress should do is require by law that they make this commitment a reality. Click here to make your voice heard.
Bailout every year
No doubt $700 billion is a huge sum of money. It is equivalent to the GDP of Taiwan or four times the size of the economic stimulus package Congress enacted last February. In light of the futility of the latter there is no surprise so many Americans are ambivalent about the idea of shelling out as many of our tax dollars as Congress did recently in an attempt to restore confidence in the nation's banking system. But no matter where one stands on the costly bailout it is still--hopefully-- a singular event. This cannot be said about an economic burden of vast magnitude that is weighing down on the economy on an annual basis--foreign oil. Even assuming prices stay at their current levels all told this year the U.S. will have spent some $400 billion on foreign oil. This bleeding prevents our economic recovery. The U.S. is like a sick patient lying on an operating table bleeding profusely. Medications will not help unless the bleeding is stopped.
About time
You may remember the sunny day in 2006 when the Set America Free Coalition brought plug in hybrids to Capitol Hill for the first time, with our coalition member CalCars, enabling many Senators and Representatives to test drive the cars (see pictures.) The excitement sparked on the Hill that day, and the Coalition's continuous educational efforts on the topic of electrifying transportation and collaboration with electric utilities, battery makers, and other industry members standing to benefit from a shift to electricity in the transportation sector, brought last winter as part of the energy bill to the passage of most of the transportation electrification provisions of the DRIVE Act - bipartisan legislation inspired by Set America Free's Blueprint for Energy Security - and culminated recently in the passage of tax-credits for plug-ins as a rider to the recent financial industry "bailout" bill.
Food vs. Fuel myth busts itself
Remember the claims that ethanol drives up food prices? Well, something strange happened on the way to the supermarket. Oil prices have fallen over 50% from a record $147 a barrel in July 2008. Over the same period of time corn prices also fell from $7.50 a bushel to under $4 today. Was this because we used less ethanol? No. To the contrary, since the summer ethanol production has risen by nearly 10%. Food prices track oil prices regardless of how much corn is used for ethanol production. When oil was up it affected the cost of essential components of our food supply like operating agricultural machinery, fertilizers, packing, labor and transportation. When oil prices came down, commodity grain prices quickly followed (processed food manufacturers, enjoying healthy profit margins, haven't chosen to bring down prices in any perceptible manner, but that's a separate issue.) It is now clear that it was not ethanol that drove up grain prices but the same speculative forces that jacked up oil prices. When the bubble created by commodity speculators popped in the current financial crisis, grain commodity prices declined. Sooner or later the economy will pick up steam and oil prices will most likely rebound, perhaps even to a much higher level. At this point the anti-ethanol coalition will no doubt regroup to resume its effort. When this happens let's make sure to remind them of the fall of 2008.
As President elect Barack Obama and the new elected Congress are preparing to govern, America's auto industry appears to be on its death bed. Barring decisive action GM, Ford and Chrysler might soon slide into bankruptcy. Coming in the midst of one of the worst financial crises in our history, the demise of the automobile industry could send the economy from its current recession to a full fledged depression. If Congress and the Administration decide to use more taxpayer money to try and save Detroit, taxpayers must get something in return. Specifically, any bailout should include an open fuel standard so that most new cars sold in the U.S. will enable liquid fuel choice. It costs automakers about $100 per car to make a vehicle fuel flexible, so it can handle a variety of alternative liquid fuels in addition to gasoline, giving consumers choice at the pump. Fuel efficient technologies are great but they are not enough: efficiency will do little to reduce oil's strategic value. With this year's high oil prices U.S. gasoline demand dropped by 10%. What was OPEC's response? The cartel cut production by 1.5 million barrels per day. Indeed, when we drill more, they drill less, and when we use less, they drill less. As long as oil is the only option in the transportation sector, OPEC will sit in the catbird seat. Detroit's automakers have repeatedly said they are willing to commit to make 50% of new cars sold in the U.S. be flex fuel vehicles by 2012. As the Big Three come to Capitol Hill on bended knee to ask for taxpayer help, the least Congress should do is require by law that they make this commitment a reality. Click here to make your voice heard.
Bailout every year
No doubt $700 billion is a huge sum of money. It is equivalent to the GDP of Taiwan or four times the size of the economic stimulus package Congress enacted last February. In light of the futility of the latter there is no surprise so many Americans are ambivalent about the idea of shelling out as many of our tax dollars as Congress did recently in an attempt to restore confidence in the nation's banking system. But no matter where one stands on the costly bailout it is still--hopefully-- a singular event. This cannot be said about an economic burden of vast magnitude that is weighing down on the economy on an annual basis--foreign oil. Even assuming prices stay at their current levels all told this year the U.S. will have spent some $400 billion on foreign oil. This bleeding prevents our economic recovery. The U.S. is like a sick patient lying on an operating table bleeding profusely. Medications will not help unless the bleeding is stopped.
About time
You may remember the sunny day in 2006 when the Set America Free Coalition brought plug in hybrids to Capitol Hill for the first time, with our coalition member CalCars, enabling many Senators and Representatives to test drive the cars (see pictures.) The excitement sparked on the Hill that day, and the Coalition's continuous educational efforts on the topic of electrifying transportation and collaboration with electric utilities, battery makers, and other industry members standing to benefit from a shift to electricity in the transportation sector, brought last winter as part of the energy bill to the passage of most of the transportation electrification provisions of the DRIVE Act - bipartisan legislation inspired by Set America Free's Blueprint for Energy Security - and culminated recently in the passage of tax-credits for plug-ins as a rider to the recent financial industry "bailout" bill.
Food vs. Fuel myth busts itself
Remember the claims that ethanol drives up food prices? Well, something strange happened on the way to the supermarket. Oil prices have fallen over 50% from a record $147 a barrel in July 2008. Over the same period of time corn prices also fell from $7.50 a bushel to under $4 today. Was this because we used less ethanol? No. To the contrary, since the summer ethanol production has risen by nearly 10%. Food prices track oil prices regardless of how much corn is used for ethanol production. When oil was up it affected the cost of essential components of our food supply like operating agricultural machinery, fertilizers, packing, labor and transportation. When oil prices came down, commodity grain prices quickly followed (processed food manufacturers, enjoying healthy profit margins, haven't chosen to bring down prices in any perceptible manner, but that's a separate issue.) It is now clear that it was not ethanol that drove up grain prices but the same speculative forces that jacked up oil prices. When the bubble created by commodity speculators popped in the current financial crisis, grain commodity prices declined. Sooner or later the economy will pick up steam and oil prices will most likely rebound, perhaps even to a much higher level. At this point the anti-ethanol coalition will no doubt regroup to resume its effort. When this happens let's make sure to remind them of the fall of 2008.
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