Apr 24 2008
Summer Gas Tax Holiday
In case you haven’t heard, John McCain is proposing a gas tax holiday for the summer. Click here to sign the petition.
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Wouldn’t it be better to not sign the petition and have folks drive less?
To be honest, it isn’t nearly as much the average consumer’s gas bill that is a problem. For example, If I drove cross country to California, the federal gas tax holiday would save me less than $50. However, for businesses that depend on delivering goods or services, a tax holiday would have a very large impact. Those people do not have the option of driving less and the gas prices on the goods and services that they provide have increased right along with the price of gas. That is where we really take the hit.
It is like any other government tax - the gas tax takes money out of the hands of consumers, and therefore out of the economy. Governemnt regulation and taxes ordinarily drive up prices.
Right, but why haven’t the gas mileages increased since I was born? People are relatively happy with 25 mpg cars, and most think that they are doing pretty good if they get a car that gets over 30 mpg. That hasn’t changed in 30 years, and I am not impressed. I am also not impressed with cars that cost 20K that get better mileage than that. I am generally in favor of higher gas prices. I have heard that Europeans didn’t change their driving behavior until the price hit $5/gallon, so I am expecting a similar thing here.
And as for the commercial stuff costing more to transport - that drives up local economies, rather than transporting stuff all over the country. That seems fine to me as well.