Thursday, March 24, 2011

Practical Option? Practically Unfair

Well, when you lose the ability to control yourself and lose the ability for innovative thought, there's only one thing to do:

Tax.

The CBO has thought it a magnificent idea to tax people for each mile that they drive.

So, now that we've actually done what they wanted...increase our fuel-efficiency...they realized that revenue from the incredible gas taxes...well, will no longer do.

So, how do we fund the President's plan on increasing spending by $556 Billion (with a B) over the next six years on transportation?  TAX!!!!  Yeah!!!  Hey, that will help the economy.

Several problems with this plan:
1. The people who can not afford to live in the city but work there will be hit hard.  Those who cannot afford the crazy mortgage required to live "downtown" have to live in the suburbs...if they are lucky.  Those people, who already can not afford a reduction in salary will be most affected by such a tax.

2. The Heartland, where our food (and since we have decided to "burn" our food...ethanol...don't get me started) is produced, is very spread out.  Because, you know, of the farms.  People who live in the heartland have to drive long distances to do...well...anything.

3. Businesses who rely on shipping via truck (that means just about every business) will incur MORE cost.  Do they pay for the cost?  Nope, it gets passed along in the form of...

HIGHER PRICED PRODUCTS

4.  Since our food is produced in the heartland, where we've established it takes forever to get anywhere, it will cost even more to ship the food from the heartland...to your plate.  Thus, the price of food continues to increase.  Awesome!  Along with inflation without a corresponding increase in the amount of money you make, this is going to be great!  I wonder what a $10 gallon of milk tastes like?

Where do we get these guys?  Seriously, this is what you voted for North Dakota?  This is logical to you?

Honorable Gentlemen in Washington, let me give you a graph that those of us who have had Economics 101 understand about what increased taxes do to demand:

See that deadweight loss?  That's loss in the economy that benefits...no one.  Cash McLovin will kill me for saying it, but the Laffer curve is making more and more sense.  With folks like this in Congress, do you really think we're on the left side of the bell curve?


George, take it away.  Please.



No comments:

Post a Comment