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Cramer: Why We Need Gas Taxes (Plural)

Cramer during Thursday’s “Stop Trading” called for not just a gas tax but a tax on cars with low miles-per-gallon rates.

In addition to raising much-needed revenue through a gas tax, Cramer said, the additional fee for so-called gas guzzlers would shift the burden off automakers, which have been forced to deal with rising café standards, and onto consumers. This is how other countries are bringing in tax dollars, and the US needs to employ the same methods.

“Our gasoline’s way too low,” Cramer said. “They don’t reflect the true cost to society.”

“This would be a very minor, minor easily digested way to raise taxes,” he added.

Few companies in the autos or energy world would be severely hurt by these taxes, Cramer said. Ford and General Motors have become much more conscious about making vehicles with better mpg rates. The one sector that may feel the pain, though, is casual dining, which suffered when oil prices reached near $150 in the summer of 2008. As consumers pinched pennies to pay for gas, that cut into the money they would have otherwise used for eating out.

On a related note, Cramer pointed out that these very stocks—Darden , Panera Bread —were “on fire” on Thursday. Despite reporting what he thought were strong quarters, analysts seemed to pan the results. But still, DRI and PNRA continue to rise in price. To Cramer, that’s a good thing.

“What makes a great market is when you see stocks that are up for absolutely no reason whatsoever,” Cramer said. “And I think that that’s really quite bullish.”

The “Mad Money” host also rejected any talk of there being a bubble in copper. He said there was “tremendous demand around the world” that couldn’t be met. China needs copper, India needs copper, Turkey needs copper—all to continue building essential infrastructure.

He defended gold’s price as well, saying it was “still way too cheap.” China and India want gold in addition to copper, and there aren’t any new mines coming on to meet the demand. At least none that exist in stable political environments or climates. He thinks gold prices will reach $2,000.

“Seventeen percent average annual return for the last nine years,” Cramer said of gold. “How have stocks done? Minus-one percent. I rest my case.”

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