Prop 87

[Sportbiker]

Ok the fuel tax. Is it REALLY going to promote other fuels? or is it going to force the oil companies to outsource causeing a price increase???

any insight on this one??

[Badkharma]

Whatever the gov't will throw at the corp giants, they will be able to manuever around it and the consumer will always end up being screwed. There is almost ALWAYS a legal way for the buck to be passed down to the consumer.

As for promoting other fuels, the cali gov't is already taking steps to do so. CA has mandated that it must produce at least 20% of it's own biofuels (read: ethanol, biodiesel) by 2010. That is not that far away. Pacific Ethanol (symbol: PEIX) should have it's first plant up and running by the end of this year with another one on the way for next year.

I really wish the gov't would stop intervening when it comes to these types of issues. The market goes to what it will bear. Let it work itself out.

As for other fuels, biodiesel is probably the next thing. Ethanol (specifically E85), while promising, is still extremely expensive (would be cheaper if the Bush administration didn't put tariffs on ethanol imports from Brazil...) and, domestically, requires a boatload of energy just to make it. Biodiesel is much cheaper and runs clean; as well as requiring less change to the existing infastructure. The ethanol output ratio is only like 1.5-2:1 (that is, 1.5-2 units of ethanol per unit of nat. gas), although that will improve with time and technological advances. We would be YEARS ahead if, instead of sinking money into a costly war, we sank that 500 billion into domestic energy development. Then there would be WAY less demand for oil (sans China/India) and the price per barrel would be in the single digits. Since the middle east has almost no other natural resources or global income, their economy would falter and eventually be crippled and they'd be sent back into the stone age, without a single nuke dropped. Just MHO.

[Tom]

This is my totally non-scientific method of choosing what propositions to vote for (when I have no clue/uneducated on the matter)

#1 - What does the associationn say.

#2 - Read the fine print.....in the ads, if the proposition is supported by a group that you don't agree with - vote against it!

Tom

[x MAIT]

Someone please tell me how raising taxes on anything will result in a lower price to those of us who pay for it. :rolleyes:

[Sportbiker]

This is my totally non-scientific method of choosing what propositions to vote for (when I have no clue/uneducated on the matter)

#1 - What does the associationn say.

#2 - Read the fine print.....in the ads, if the proposition is supported by a group that you don't agree with - vote against it!

Tom

ok i finally looked and the ones supporting "No on 86" is Cheveron Corporation....

looks like im votin yes....

[x MAIT]

[/quote]

ok i finally looked and the ones supporting "No on 86" is Cheveron Corporation....

looks like im votin yes....[/quote]

Sportbiker, does the expression "pay at the pump" mean anything to you. It will.:rolleyes:

[Sportbiker]

Mait....that quote doesnt make sense to me....i know the quote, but i dont see the relavance to this...87 is designed not to pass the taxes onto the consumer...

[x MAIT]

Mait....that quote doesnt make sense to me....i know the quote, but i dont see the relavance to this...87 is designed not to pass the taxes onto the consumer...

You are absolutely right. There is no way we will end up, one way or another, paying for the new tax. I stand corrected. I can't wait for November so I can vote yes for this proposition. In fact, I can't wait for new propositions that tax the profits of every company in America so that we will all feel better about things.

[G-Man]

Mait....that quote doesnt make sense to me....i know the quote, but i dont see the relavance to this...87 is designed not to pass the taxes onto the consumer...

you're right the taxes won't be passed onto us, but when Chevron starts losing profit because of the recent tax hikes they will begin to raise gas prices. the tax is not being passed onto us, it is the cost of doing business.