Savings Experiment: Carpooling

From WalletPop.com:

Everyone knows that carpooling can save energy and it diminishes traffic. When many people use only one vehicle to get to the same place, fewer resources are used up. But does the money it saves passengers really make much of a difference to your pocketbook?

According to the AAA, the average American one-way commute to work is 16 miles, so most of us travel an average of 32 miles a day just to get to and from our jobs. Using the commute computer at RideFinders.com, a ride-sharing portal, we found a savings of more than 50% for people in car pools.

Assuming a vehicle costs 59¢ a mile to operate five days a week (a typical figure under stop-and-go conditions over 15,000 miles a year), we can do a little math and find that when split equally among all members of the car pool, the per-person price for fuel, car maintenance, paring and tolls plunges by half or more compared to solo commuting.

That car will cost about $4,680 a year to get to and from work. Start splitting that among passengers, and the per-person cost plummets. For two people, the per-passenger savings is $2,340 per year. Split between three people, the per-person savings is $3,120 per year; instead of shouldering the whole $4,680 cost, each person in a three-person pool pays only $1,560.

Carpoolers also can become productive during a significant portion of their day. Instead of manning the steering wheel every day, the passengers in a car pool can spend their time doing more productive things, such as reading the news, writing, catching up on books, texting family -- for a 45-minute commute, that's like getting another hour and a half of your life back when you're not driving.

Winds of Change: Ohio Legislature Passes Renewable Energy Tax Reform

It’s about time we find ways to utilize renewable energy sources in the U.S. while creating the jobs that go with them. Ohio is proposing seven new wind farms in their quest for renewable energy according to Wind and Solar Jobs for Ohio, a grassroots coalition in Ohio.

Passing the bill, known as Sub Senate Bill 232, was a bipartisan effort. Both parties put aside their differences to bring Ohio's tax structure for wind development in line those of surrounding states. With this vote, Ohio lawmakers have positioned the state to create thousands of Ohio manufacturing, construction, operations and maintenance jobs in the wind industry and protected the existing manufacturing jobs resulting from new wind turbine orders.

This renewable energy tax reform strengthened the renewable market and secured millions of dollars in new tax revenue for local communities in Ohio.

You can read the full article here.

U.S. Gasoline Tax Hike Unlikely, Key Senator Says

From Reuters:

The new Congress probably will not approve legislation to raise the federal tax on gasoline, the chairman of the Senate Energy Committee said on Monday.

Democratic Sen. Jeff Bingaman said he was aware of arguments that a "variable tax" should be put on U.S. gasoline to prevent falling pump prices from encouraging Americans to drive more while making alternative fuels less attractive.

Such a tax hike "would be very tough to pass," Bingaman said at the Center for Strategic and International Studies. "I don't think something like that has much prospect of being enacted in my honest opinion."

Americans pay an 18.4-cent federal tax on each gallon of gasoline they buy, plus an extra 29 cents on average in combined state and local taxes.

As the cost of gasoline has declined to half its record $4.11 a gallon set in July, some energy experts have said the United States should levy a tax. These experts point to Europe, where the gasoline tax is much higher, to reduce reliance on imported petroleum. The European tax formula keeps gasoline costs high even when crude oil prices fall.

The average cost of gasoline has dropped below $2 a gallon in 17 U.S. states, raising concerns among some that many Americans will return to driving gas-guzzling sport utility vehicles, hindering efforts to reduce reliance on oil imports.

Biden and Palin – Comparing and Contrasting their Tax Views

Over the past week there has been a lot of media attention on the United States economy. With huge government buyouts, and record-breaking drops in the stock market, Americans are looking to the Presidential candidates for more information on their tax and economic plans.

In the past week weeks I have given an in depth look at both Vice Presidential candidate’s (see the entries on Sen. Joe Biden and Gov. Sarah Palin), and with the recent developments in our economy I thought it prudent to also compare the differences in their respective tax views on a few key issues.

Balanced Budget:

Joe Biden:

Senator Biden feels strongly that a balanced budget should be high up on the next president’s priority list. On top of consistently voting for what he believes were fair and balanced budget amendments since 1997, Biden has also voted against bills he felt would lead to an unbalanced budget. In 1990, Biden voted against George H. W. Bush’s budget bill, which aimed to raise taxes drastically over a five-year period. In 2000, Biden also voted against making tax cuts a priority over national debt reduction.

Biden’s own budget plan for the next few years includes cutting funding for the war (by which he hopes to generate over $100 billion in federal revenue), and eliminating tax cuts for the wealthiest Americans. He also plans on eliminating tax cuts for investment on dividends – which he claims could generate $195 billion in revenue over time.

Sarah Palin:

From the moment Palin took office as the Governor of Alaska, she began looking for ways to cut spending in all areas of the government. By cutting local project programs, selling a corporate jet, firing unnecessary government staff, and directing state agencies to reduce excess spending, she was able to reduce the states spending by $124 million. However, a $7 billion education and savings plan, new ice rink, and other local investments eventually led her state into debt. While the governor made many positive changes to Alaska and provided youth and cultural opportunity, debate rages at to whether her cuts were effective or not.

The difference:

Both candidates obviously agree that balancing the budget is an important task, though possibly on different levels. While Biden has experience working as a Senator to fix the national budget, Palin’s experience is limited to the state level. Without further statements from Palin herself, it’s hard to tell exactly what her plans for the budget are on the national level.

Gasoline Prices, Taxes, and Solutions:

Biden:

Knowing our dependence on oil and need for change, Biden has outlined multiple ways to help fix our countries current energy crisis. While other candidates have supported a gas tax holiday, Biden opposes the concept claiming that is merely a temporary solution. By pushing to reduce our dependence on oil entirely, Biden hopes to ease the demand for fossil fuels and also fight global warming. In 2005 he voted yes to bills that aim to significantly reduce oil by 2025, and for tax incentives to encourage energy production and conservation. He also voted against multiple bills promoting oil leasing programs in Alaska’s ANWR.

Palin:

A strong supporter of a gas tax holiday, Palin feels there is plenty of oil available for drilling in this country. Alaska has some of the highest gas prices in the country, and to help out citizens of her state Palin signed a gas tax holiday into law, and also pushed to get one time energy rebates sent out to Alaska taxpayers. Another one of Palin’s energy programs was known as Alaska’s “energy efficient month,” where the government provided incentives for reduced energy consumption. Although Palin has achieved some success in helping Alaska’s energy problems many wonder whether or not she will be able to do the same on the national level as the programs were made possible by windfall taxes from oil companies drilling in Alaska.

The Difference:

The only real similarity between the candidates is the fact that they both realize we are in an energy crisis. While Biden plans to make our nation less dependent on petroleum, Palin is very vocal about her support for increased offshore drilling. Palin does claim she supports green energy projects, but views them of secondary importance.

Earmarks:

Biden:

It is no secret that senator Biden has quite an earmark record. His FY09 requests total about $330 million, and it has caused a lot of bad publicity for Biden. Although it is not uncommon for members of Congress to take advantage of earmark spending, it is not helpful for a campaign running on the idea of change in a time of economic uncertainty.

Palin:

Although she’s taken stride to criticize both Obama and Biden on their earmark spending, Palin does have a record of wasteful spending. The infamous “bridge to nowhere” project, which she first embraced and then, later, dropped, was estimated at about $398 million. Obama criticized Palin for the first time ever on September 6^th, and on her earmark policies in particular:

"I know the governor of Alaska has been saying she's change, and that's great," Obama said. "She's a skillful politician. But, you know, when you've been taking all these earmarks when it's convenient, and then suddenly you're the champion anti-earmark person, that's not change. Come on! I mean, words mean something, you can't just make stuff up."

The Difference:

While no one tries to say straight out they “favor” earmarks, Biden is, if at all, more open and honest about it. It was a considered risky move on Palin’s part to be so critical on earmarks when she had does have some history of them herself.

10 Things to Know About Sarah Palin and Energy

As many of you have probably already heard, Presidential Candidate Sen. John McCain made headlines around the world when he announced that his Vice Presidential running mate would be Gov. Sarah Palin. Although there still has not been much written about her tax views, I found this interesting article on 10 Things to Know About Sarah Palin and Energy. Below are a few items that I found most interesting from the list, but you can read the whole article by clicking here.

Standing Up to Big Oil

Serving as the ethics commissioner of Alaska’s Oil & Gas Commission, Palin built her reputation on cracking down on big oil and her fellow Republicans for corruption. As governor, she also successfully led a bipartisan tax levy on big oil’s profits.

Creation of Alaska’s Climate Change Sub-Cabinet

Palin does recognize that her home state is thawing. Palin created the Climate Change Sub-Cabinet to consolidate the state’s knowledge on climate change and guide the state’s mitigation and adaptation policy. The Cabinet was also charged with exploring the state’s renewable energy potential, especially “geothermal, wind, hydroelectric, and tidal resources.”

Drill, Drill, Drill

As governor of an oil-rich state, it is no surprise Palin is in favor of domestic oil production. While McCain has reversed his position on drilling on the outer continental shelf (OCS), he has yet to call for drilling in the Arctic National Wildlife Refuge, which Palin refers to as “that little 2,000 acre plot.” But Palin thinks he’ll change his mind: “[McCain] came around on OCS…I anticipate the same with ANWR.”

Energy Rebate Check

Palin issued a press release praising Obama’s proposal for $1,000 energy rebate checks. She had proposed a $100-a-month energy debit card, but dropped that plan in favor of a $1,200 one-time special payment to eligible Alaskans, which she signed into law just this week.

Gas Tax Holiday

Alaska has some of the highest gasoline prices in the country and Palin signed into law a gas tax holiday, suspending the motor fuel tax on gasoline, marine fuel, and aviation fuel for one year. McCain and Clinton both were in favor of gas tax holiday while Obama claimed such a move was merely a “gimmick.”

Top 10 Factors that Influence Fuel Prices

It does not take an expert to notice that gas prices have risen sharply over the past year. Although the average person probably understands that demand influences gasoline prices, you might be surprised to learn that there are actually dozens of different factors that can increase or decrease the price you pay at the pump. To help the readers of my blog understand how complex the prices of petroleum really are, I have gathered the following list of the top 10 factors that influence fuel prices.

1. High Demand

Demand is high for gasoline in not only the United States, but around the whole world. With more and more cars on the road every year, and a second baby boomer generation, the demand for gasoline is higher in this country than ever. Although increased gas prices have cause the average American to drive less in general, the population and number new drivers continues to increase.

2. Limited Resources

Pricing of petroleum is controlled by the OPEC countries, which own about 2/3 of the worlds oil reserves. Some feel OPEC countries control and change the price of oil at their will, but it is becoming obvious that the reserves themselves are beginning to run low. The supply of crude oil as a whole is dwindling. “Our demand has skyrocketed, but our ability to supply that demand has stagnated,” notes Stephen Schork of the industry newsletter, the Schork Report.

3. Weather

Disasters like hurricane Katrina and now the Iowa floods are contributing to the gas spike too. The flood contributed to the loss of over a billion bushels of corn, which causes significant harm to the ethanol industry.

4. Summertime Travel

In the summer, there are more RVs on the road, more vacations, and more overall gas usage. Due to the increase, gas prices go up every summer to deal with the higher demand. However, prices fluctuate frequently during summer months due to this occurrence.

5. Future Planning

Recent studies and investigations have found that gas prices are being raised not necessarily by immediate need, but by predictions of future consumption. Many consumers who find this fact are upset by the fact that they are being overcharged for future reserves.

6. Corn Crop Loss

Due to afore mentioned weather problems, ethanol made from corn crops is in short supply. With the shortage in ethanol, ethanol prices have shot up and fewer people are using it to power their vehicles. Therefore there is even more demand for fossil duels which causes prices increases.

7. Tax Rates

In addition to already high fuel costs, both the federal government and most states levy some sort of excise tax on consumers who purchase gasoline. The federal fuel tax hovers a little under 20 cents a gallon, while most state taxes are slightly about 20 cents.

8. Geographic Location

Where your buying gas makes a huge difference. Getting gasoline a few miles outside of a major city like San Francisco or Seattle can drastically reduce the price you pay per gallon. Additionally, some smaller cities across the country have higher gas prices to meet with their local economy and gasoline demand.

9. Competition

It is hard not to notice the competition when you see a gas station on each corner of almost every major intersection. When a larger city with more drivers calls for more gas stations, competition can raise and lower your local prices on a daily basis. With the allover raise in fuel prices, many consumers try to choose the station with the lowest price, forcing close competitors to watch and mimic each other constantly.

10. Other Petroleum Products

Although the demand for crayons cannot to be compared to the demand for gasoline, there are examples of another petroleum product that can take up resources as well. Bubble gum, record, tires, asphalt, propane, ammonia, and deodorant are all common products that require petroleum for production.

8 Reasons to Buy a Hybrid

With gas prices putting a strain on everyone’s wallets, hybrid sales are soaring. But do not let the sticker price of a hybrid vehicle scare you – there are plenty of incentives to consider both before and after the purchase. Although we all probably know a handful of obvious reasons to buy a hybrid vehicle, there are actually a lot of incentives that you may have never heard of.

1. The Obvious

Gas consumption levels are much lower for hybrid vehicles (up to 50 mpg in city driving conditions). Studies show that by the 2^nd or 3^rd year (less if you commute or drive often) of owning the vehicle, the gas you’ve saved will have already paid for the car.

2. Future Value

Hybrid vehicles hold their value very well. After years of well-kept ownership, the value of hybrids usually only drops a few thousand dollars. This is partially because hybrids have low idle rates as their engines usually shut off at stoplights, and turn back on when you press the gas pedal again. This causes much less stress to the vehicle’s engine.

3. Maintenance

Hybrid vehicles, particularly the Toyota Prius, are made with parts that do not require much maintenance. As a Prius owner, you will only need check ups and oil changes as often as you do with normal cars.

4. Tax Incentives

Although the tax breaks have definitely decreased over time, certain tax cuts are still available to some hybrid buyers in many states. With the ongoing energy crisis, there is also growing pressure on Congress and the President to extend the old hybrid credits, or even create better ones.

5. Insurance Savings

A decent amount of insurance companies are also beginning to offer discounts for hybrid car owners. Before you buy a hybrid, call around a few different insurance companies to see if you qualify for any alternative fuel discounts.

6. Low, Manageable Leases

Major car companies, such as Toyota, have recognized the demand for hybrids is increasing and offer impressively low leases (as low as $219 a month) to help consumers who cannot afford to buy a new car.

7. Impressive Warranties

Toyota, Ford, and Honda all offer extended warranties on hybrid specific parts of their vehicles. The battery packs alone in the Toyota Prius have warranties that average out to about 12 years of use.

8. Funding a Good Cause

Buying a hybrid vehicle is one way to directly fund fuel-efficient technology. By buying and using a hybrid vehicle, you are making a statement on the ongoing energy crisis in this country.

Obama Supports Tax Rebates to Help Energy Crisis

Last week, Presidential hopeful Sen. Barack Obama proposed a new energy plan, that includes measures to fight rising costs, and a $1,000 tax rebate for middle and low income families.

"Do you think you can afford another four years of the same failed economic policies?" argued Obama. He was later quoted at a town hall meeting in Florida as saying, "with job losses mounting, prices rising, increased turbulence in our financial system, a growing credit crunch, we need to do more."

Obama hopes to pay for the $65 billion rebate package by levying a 5-year tax on the profits of major oil companies.

According to Reuters, “the proposals came as the government announced the U.S. unemployment rate hit its highest level in four years with another 51,000 non-farm jobs lost in July, bringing job losses for the year to 463,000.”

The tax rebates, which would be phased out for those making more than $150,000 a year, are an accelerated version of Obama's earlier proposal for permanent tax reductions of up to $1,000 for working families, aides said.

Energy Savings = Tax Savings

If you have made recent upgrades to your house then you may qualify for additional tax credits. There are many different home improvements that qualify for the energy credits including insulation, water heaters, air conditioners, fans, furnaces, skylights, windows, doors, solar panels, and certain roofs. The credit is usually around ten percent of the cost, but can vary depending on the type of upgrades. Keep in mind that only home improvements that reduce a home’s "heat loss or gain" are eligible for the credit. Thus, the credit may not apply to common household appliances such as dishwashers or refrigerators even if they bear the Energy Star label. For more details on getting an energy credit, visit DailyNews.com.