20 July 2008

It's no gas

In yet more proof that our lawmakers lack basic understanding of economics they are considering a fuel tax increase. This is their reasoning:

Just three years ago, that trust fund enjoyed a surplus of $10 billion. Even without a tax freeze, the fund is projected to finish 2009 with a deficit of $3 billion. That could grow as Americans drive less and buy less gas because of higher pump prices.

I don't disagree with the need to fund our infrastructure. I do wonder why lawmakers think that adding a fuel tax, at this point in time, will help increase receipts. Classic Washington thinking.

2 comments:

Sportsattitude said...

Washington appears to be scrambling to find answers anywhere they can and not even paying attention to the details, the domino effect of taking certain actions, etc. The country cries out for government leadership, but also some applied intelligence and a clear perspective of the "big picture" when making decisions and policies.

Lowdogg said...

Word.