Friday, December 12, 2008
Sewellian Tippy-Top Gunned Down
In a provocative presentation delivered in the International Intelligence class, we were introduced to the idea of a Sewellian Tippy-Top tax. While the topic is creative, there are several key problems that should have BrenTom rethinking their plans.
They suggest a minimum price of gas at $2.30 forcing citizens to pay more at the pump when the market price is lower. And who really wants that? The tax also creates a burden for those with lower incomes because it is a regressive tax so more percentage of their income goes to gas.
BrenTom’s plan was delivered yesterday to President-Elect Barack Obama. But let’s be honest…any president approving this proposal commits political suicide. How often do the American people trust the government with their tax money? Moreover, they suggested that the money earned from the tax should go to infrastructure. This could easily be money wasted. Take Lexington, for example. The city has this beautiful new infrastructure for the World Equestrian Games but how does that benefit anyone 5 or 10 years from now?
The Sewellian Tippy-Top tax plan also injures oil producers in the United States. The tax would keep the oil prices artificially low because the higher price will reduce domestic consumption. Therefore, a higher price and a lower demand.
So, while I have the greatest respect for the founders of BrenTom, I think it’s time for them to go back to the drawing board and deliver something to Obama that he can believe in.