James E Clark

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1.             Effect on competitiveness

When you first think about taxing fuel you naturally think that this will make our produced products less competitive.  But since production requires both fuel and labor, the selling cost of the average product will remain unchanged if these changes are made gradually and simultaneously.  With proper implemented, government income from taxation would remain the same as it would have been without this change in policy.


2.             Collecting the Fuel Tax

Gas and liquid production from every oil well in the US is already reported to government authorities.  This information is required to manage underground reservoirs.  Placing a commercial value on this production allows the Fuel tax to be computed.

The amount of imported oil is also already reported, so its commercial value can be taxed.


3.             Basis for calculating the Fuel Tax

The fuel-tax needs to be calculated on the fuel’s commercial value; not its carbon content, nor its fuel value; but only its commercial value.  If the fuel tax were to be calculated on chemical analysis, then disagreement on any analysis is allowed.


4.              Amount of Fuel Tax

The rest of the world had settled upon a price of $10 per gallon.  The US should increase fuel taxes to match that value