redblueamerica.com

The largest problem with the current proposal to temporarily remove the tax on fuel is that it would likely cause an increase in demand. Increased demand leads to higher prices, so the benefits would be diminished. In addition, an eighteen cent savings on a $3.50 gallon of gas would be barely a five percent savings. That amounts to a savings of $3.60 for 20 gallons of gas. Assuming that the price of fuel stays constant at $3.50 a gallon (a highly unlikely scenario), after my $0.18 savings, the new cost of that 20 gallons would be $66.40. I would rather the government keep the billions of dollars they would make over the summer. With that $3.60, I could buy an extra gallon of gas, but just barely.