Clark Howard's Tips
The downside of a possible gas tax holidayMay 6, 2008
Both sides of the aisle are advocating the idea of a gas tax holiday this summer. Yet Clark thinks this is one of the craziest economic ideas he's heard recently.
We're all hurting as we watch the dollars fly and the gallons crawl at the pump. But the gas tax holiday is a recipe for financial disaster. It would increase demand and ultimately drive up prices.
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CLARK'S TIP TOPICS
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Brazil is one country that's made some smart decisions in the energy realm. The South American nation was even more dependent on foreign oil than we were during the last energy crisis in 1979. So they embarked on a program of energy independence using sugar. Our Brazilian allies now provide for 100% of their energy needs and can export additional sugar as well.
Sugar produces a fuel that's more efficient than the corn-based ethanol we use. So why aren't we getting Brazil's exports? Domestic sugar producers have gotten Congress to put up trade barriers to keep it out of the marketplace. Meanwhile, our farmers have turned to growing their corn crop for fuel use, not for food. That, of course, further drives up the price of food!
We continue to use foreign oil from those who want to destroy us, instead of using sugar from our allies in Brazil. It makes no sense to Clark.
