We *WOULDN'T* *HAVE* $3.50 gas today if they had put a 50 cent per gallon tax on it in December when I loaded all my fuel jugs at $2.17 because it had gotten so cheap. Demand would have declined, and the price of the oil itself would have declined, just like its going to do now that the price has gone over $3.50. The DIFFERENCE is that the money didn't reduce the trade deficit, nor did it reduce the budget deficit. It went to Chavez and Ajammmyjad and all their OPEC buddies so they could accumulate more dollars to dump instead. THAT was the GOOD news. The BAD news is we ALSO have to PAY IT BACK plus interest, of course. Its enough to make you want to cry...
It really irks me when people suggest "putting a tax" on anything to reduce consumption. Suppose the govt put a 50 cent tax on gas to reduce consumption and assume it worked. On the other hand, to reduce consumption the oil companies decided to raise the price of gas 50 cents. there would be an outcry. Personally I would rather the oil cos have the 50 cent increase. The extra revenue could be put to better use by a corporation than any politician. A better paying job, research, corporate philanthropy to name just a few. Everyone bitches about taxes yet we been brainwashed.