tag:blogger.com,1999:blog-4509173218981631666.post6147336955119802802..comments2023-11-05T07:47:39.708-05:00Comments on The Blog of Diminishing Returns: I’m not an Economist who supports a gas tax reduction, but one theory how it could help.Seth Gitterhttp://www.blogger.com/profile/05419336947867237619noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4509173218981631666.post-58302038243099177732008-05-07T07:59:00.000-04:002008-05-07T07:59:00.000-04:00Just one other point to consider. Currently, the ...Just one other point to consider. Currently, the federal gasoline tax is 18 cents a gallon. In the last few days, I have seen gasoline sell for anywhere between $3.35 and $3.65 a gallon. (My best guess is it will trend up this summer and later trend down.) But if one wants to put forward the idea that the tax holiday will make a large difference in consumer confidence, I would have to argue against that as the tax cut would not be enough for people to notice. If the price of gas this summer is $3.70 rather than $3.88, I don't believe this will affect consumer confidence much.<BR/><BR/>As Seth's father, I can tell a story a two. When he was young and gasoline price had hit the unbelievabille price of $1.40 a gallon, it had fallen back to 99 cents. I used to show this to Seth and his brother and tell them to look closely as they would never see gas under a dollar again. They enjoyed the occasions through the years when Dad was wrong and gas once fell again below a dollar.<BR/><BR/>I think I can safely say they will never see gas below a dollar again. Below three dollars? Hmmmm. <BR/><BR/>Bob Gitter/DadBob Gitterhttps://www.blogger.com/profile/14044726462116314459noreply@blogger.com