Americas Dependency Part 2

Each time the price of oil per barrel increases the price at the pump goes up accordingly. Early last week, the price fell to about $126 per barrel but did you see the price at the pump go down, NO! Even if the price per barrel were to drop dramatically it will take even longer for the price of gas at the pump to fall as well. Not only does it not help that the dollar is at its weakest point almost since its inception, what a great policy, in order to see change in the worth of the dollar the current administration needs to make some new decisions. Do you think things will change with a new regime? Alas I digress.

Recently there has been talk of a bill going through Congress to suspend the federal gas tax during the summer months. Now this bill is still in discussion the last time I checked, but here is the real kicker. The suspension was supposed to begin Memorial Day weekend and go through till Labor Day. They are a little behind and should really get things in gear and make a decision. With that said I think Congress should not suspend the federal gas tax during the summer months. In the end with no idea who will pay the tax it will just hurt our nation. If the money is to come out of the construction budget then what will happen to the roads that are in need of repair. I shop at a grocery store that will give you a discount on gas based on the amount of money that you spend, while it is nice to have that discount, they do adjust the price at the pump to be more than at other filling stations; who would control the oil companies from doing the same thing? After all it has been preposed that the Oil Companies pitch in from their deep pockets and pay the tax during the time off. I do not see how a three month break will really affect the bottom line of many American’s budgets, with no gas tax. It might do enough to set the country back as a whole but I do not feel it will get more people out there driving and traveling.

While I was checking out other items that Congress is working on all consumers should be happy to know that there is a bill currently on the floor to RAISE the gas tax up to 40 cents per gallon, over the next five years. So why not let the people have a quick three month reprieve of not paying the taxes knowing full well that a bill could later be passed to raise said tax even higher. Add that to the increased cost of gas at the pump and we just might have a crisis on our hands.

Background information: A bipartisan commission created under the 2005 highway law released a report recommending an increase of up to 40 cents per gallon in the federal gasoline tax. The commission recommended almost doubling the federal gasoline tax over the next five years, boosting it in increments of 5 cents to 8 cents per year. (National Write your Congressman website).