Howard_T

Why We Need Higher Gas Prices

As I understand it, the argument is that higher petroleum taxes, and thus higher fuel costs, will encourage the manufacture and purchase of fuel-efficient vehicles, lessen the amount of oil imported, help to reduce emissions and global warming, and provide funds to repair road infrastructure. All these are noble causes, and should be encouraged. The problem is that higher fuel costs translate to higher costs for all goods and services used in the United States. It amounts to a tax on everything, and it hits the poorest among us the hardest by essentially taxing the basic necessities of food and clothing.

One can argue that tax exemptions could be applied for fuel used in the transportation of goods, but what of the local repair man, delivery service, building contractor, and the like? As soon as selective exemptions are applied, some government bureaucrat is now picking winners and losers, and the probability of corrupt practices grows. Let the markets dictate the price, and let the economy heal itself.