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View Diary: Richest 2% Should Pay Taxes for the Other 98%. Tax the Rich, Says Ukraine Prime Minister Yatsenuk (123 comments)

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  •  The gas pricing is a huge problem. (0+ / 0-)

    When the cost of importing from Russia is $400 /1000 cu meters and the state utility sells to households at $90 / 1000 cu meters, there will still be a loss if the price is raised 50% to $135 / 1000 cu meters. Last year, the cost of the subsidy was 7.5% of GDP. That would translate to $1.1 trillion dollars in the US economy, just to provide natural gas.

    There are details in the 50% increase so that it would be applied according to means. As much as 40% of the low end of the income scale may be exempt from the increase.

    A more fundamental problem infrastructure and modernization exists. Local utilities in Ukraine's cities provide hot water because household hot water heaters are a rarity. Or  maybe they're a rarity because utilities heat it instead. The utilities use a tremendous amount of gas to heat the water which is wasteful and inefficient. From what I understand, the term 'hot water' is something of a joke, even in hotels.

    Ukraine has a steel industry which also uses gas inefficiently. The pipeline itself hasn't been maintained. The price of natural gas is too expensive to be wasted, but nothing has been done about it.

    There is no existence without doubt.

    by Mark Lippman on Sat Mar 29, 2014 at 05:30:58 AM PDT

    [ Parent ]

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