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Causes and implications of rising oil prices

Crazy gas prices warrant creative government tax incentives
By Steven Kurlander

LAKE WORTH As the price of gas reaches $4.00 a gallon in most parts of the country, oil industry pundits are now forewarning that price could shoot over $6.00 by the end of next year http://www.ajc.com/opinion/con tent/shared-blogs/ajc/thinking right/entries/2007/06/21/gas_a t_6_per_gallon_get_ready.html.

The speculative rise in a gallon of gasoline guarantees to cripple the American economy and destroy our collective lifestyle, which is predicated on the use of the gas-guzzling automobile.
No one, either in the Bush Administration or in Congress, is really speaking about how the country is going to adjust to life with expensive gas. Today, in the various regions of our country, going to work or dropping the kids at school now can cost commuters $50-$100 a day.
One of the latest ideas being touted is a moratorium on gasoline taxes, both at the state level for the summer months http://www.tallahassee.com/app s/pbcs.dll/article?AID=/200804 29/CAPITOLNEWS/804290333 and by Presidential candidates Hillary Clinton and John McCain.
Much like the days of the Great Depression, the United States today faces a severe financial crisis that threatens the economic stability of the country.
But no one is really interested in presenting any ideas about how to reduce our dependence on oil. There is no serious discussion, except for limited tax holidays, of the introduction of both short and long term incentives and consumption taxes which would bring down the burning up, and the price, of gasoline.
For example, Sen. McCain recentlyargued that corporate taxes in this country were too high compared to the rest of the world. Let's say ok, he is right. Should we just give them the tax breaks?
Instead, why not let them earn the tax breaks by implementing creative, ground breaking policies and investments in the country's infrastructure that would discourage the consumption of gasoline.
First, large corporations could be encouraged to use the "virtual office" concept on a mass scale to encourage workers to work at home. The technology which allows an employee to work at home is now cheap, efficient, and secure. Corporations could be given significant tax breaks as a reward for reducing the consumption of gas and congestion on the highways. http://www.usatoday.com/tech/n ews/2002-09-29-webcast_x.htm
Businesses could also be encouraged to combine the construction of large


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