“Four for One” - Gay Symington
July 15th, 2007
Politics, Vermont, absurd, critical thinking, economics, global warming, taxes
House Speaker Symington was on WCAX “You Can Quote Me” this Sunday morning. She is obviously passionate about the global warming issue. I like people with passion.
Obviously she was disappointed that the Representatives were unable to override Governor Douglas’ veto. She felt this was a significant lost opportunity. She said that for every dollar her energy program would spend - it would save Vermonters four dollars. Yes she said that. Quite emphatically, and more than once.
Ok. So let’s do the math. Vermont consumes 149 million gallons of #2 fuel oil to heat its homes each year. At $2.60 a gallon that works out to about $387 million dollars spent on heating oil. So, we tax Entergy $25 million, and it will yield 4 times (FOUR TIMES) that in energy savings for Vermonters. That’s $100 million dollars! For energy audits, some insulation and weather stripping! And it will cut the usage of (and presumably the expenditure for) residential heating oil by almost 29% or about 38.5 million gallons of heating oil.
That’s TWENTY NINE PERCENT!
What are we missing here?
(Oh… and increase jobs in Vermont at the same time.)
OK. So, if that works, then we should tax heating oil at $0.17 a gallon which would raise $25 million bucks… which then at 4 for 1 would save us $100 million bucks or 29% of our heating oil! Now if this works, that means since I use about 800 gallons each year (costing me $2080) then if I pay an extra $0.17 cents per gallon, Vermont will actually help me to use only 568 gallons (being unable to do so myself - and which means that the program will actually get that much less fuel oil tax… so how does that work?.. a minor detail I guess.) Well, anyway, then I only have to buy 568 gallons of fuel oil but at 2.77 (2.60 plus the 17 cent “energy” tax) my total cost in now only $1573. That means I save $507.
Now… if this is really possible. Show me. I would be more than happy to spend $507 dollars less this year- and in fact for this year alone, I’m willing to spend the $507 (instead of the extra $136 “tax”) to save $507 (how does that work?) Cause I figure if I can put $507 insulation and weather stripping or what have you and have to only buy 568 gallons… then that’s good.
Comments