Gas Tax

Buried in Wednesday’s NBC News/Wall Street Journal Poll was this fact: 18 percent of Americans view energy and the cost of gas as the most important issues for the federal government to address. That number ranked third, behind the economy and the war in Iraq, and ten points ahead of health care. Add that to the 4 percent of Americans who see the environment and global warming and the environment as the number one issue, and 22 percent of Americans see some sort of energy concern as the most important federal issue.

Concern about the fact that only four percent see global warming as the most important issue notwithstanding, this is a welcome shift in political consciousness. The next step is for our leaders to explain why the top two issues, the economy and the war in Iraq, are actually related to energy and the cost of gas, and why confronting global warming relates to all three.

Unfortunately, political rhetoric and action is not yet where it needs to be on these issues. Instead of convincing dialogue about building a clean energy future that enhances energy and climate security, the American people get irresponsible talk from a supposedly pro-climate candidate about a gas tax holiday. The Senate debates cap and trade legislation, but won’t even extend the Solar Investment Tax Credit. Four dollar a gallon gasoline means that it is time to move forward to new sources of energy, not despair about the fact that the old ones aren’t working for us as well as we’d like.

High energy prices are here to stay, and the American people are struggling because of it. For now, it seems that many politicians are unwilling or unable to tell the American people that we have to innovate, not drill, out of this problem, and that there is no short-term solution.

Leadership means connecting the dots, from high energy prices, to climate change, to green collar jobs, to turmoil in the Middle East. It means realizing that four dollar a gallon gasoline is related to the Solar ITC. America is nowhere close to leading on energy, and the consequences will be grim should we take a pass on building the premier 21st century green economy. Thankfully, it seems that the market is taking hold. Companies like GM are starting to get the picture that we need to build plug-in hybrids like the Chevy Volt, and California is primed to install 200-250 Megawatts of solar in 2008 alone. Let’s hope political leadership can create the policy needed to support them.

High energy prices are proving a threat to the American way of life as they become an increasingly large share of how Americans spend their incomes. In today’s New York Times, Clifford Krauss writes about the impact of gas prices on rural communities:

Gasoline prices reached a national average of $4 a gallon for the first time over the weekend, adding more strain to motorists across the country.

But the pain is not being felt uniformly. Across broad swaths of the South, Southwest and the upper Great Plains, the combination of low incomes, high gas prices and heavy dependence on pickup trucks and vans is putting an even tighter squeeze on family budgets.

Here in the Mississippi Delta, some farm workers are borrowing money from their bosses so they can fill their tanks and get to work. Some are switching jobs for shorter commutes.

People are giving up meat so they can buy fuel. Gasoline theft is rising. And drivers are running out of gas more often, leaving their cars by the side of the road until they can scrape together gas money.

The disparity between rural America and the rest of the country is a matter of simple home economics. Nationwide, Americans are now spending about 4 percent of their take-home income on gasoline. By contrast, in some counties in the Mississippi Delta, that figure has surpassed 13 percent.

Additionally, a new poll from CNN found that:

As more Americans become resigned to the possibility of paying $5 for a gallon for gas, they are driving less and seriously considering chucking their gas guzzlers, according to a poll released Monday.

These rising costs, along with rising healthcare costs and dropping wages, have the potential to widen gaps in the American economy and radically impact the way Americans live their lives. Reducing gas prices in the short terms is difficult, if not impossible, and there are far more bad ideas about how to do this than there are good ones. John McCain has come back to one of his worst, the gas tax holiday, which is impressive for its overt pandering and lack of foundation in economics. Americans need a sound energy policy and are currently feeling the burn from lacking a forward thinking one for the last eight years.