Walk through this with me. If economists are correct, and so far they all agree the gas tax will not save anyone a dime, then why the continued push? The part economists agree on is that gasoline, supposedly, is controlled by supply and demand. In the summer the price of gas increases because of the higher demand. Before you jump in here let’s go with their theory.
Clinton and McCain claim that if you remove the gas tax for a few months this summer it will help people travel more on their vacations. This increases the demand and the price goes up to about what it would have been had nothing changed. In other words, if gas is $3.50 p/gal. now and you drop 25 cents off by removing the tax, more people will drive and increase the demand. So far, so good.
The increase in demand will force the price up real close to the original $3.50 p/gal. So, if you are promoting a gas tax who is most likely to benefit? Exxon/Mobil, Shell. Citgo……….you got it. Only the gas companies win. So while you’re trying to decide if the Clinton/McCain gas tax policy is valid, you might want to find out which oil company is funding whom?
If only Bush had come up with this idea.
