Thursday, October 27, 2005

Hillary's Proposed Tax...

So, the junior Senator from New York wants to save us all from the evil petroleum companies and their high prices. Story here.

My questions are these:
1. Since the high price of gas is at least partly due to the noble action of our elected Congress-critters, how exactly is more of the same an improvement?

2. Since I'm currently paying over $0.50 in taxes on each gallon of gas, just how is an added tax going to reduce my costs?
3. Did you sleep through your economics classes, Senator, or do you merely believe we're all too stupid to figure out how this works?

Tax on a corporation is overhead. Overhead is added to other costs of production. Prices are raised to equal all costs, plus something to allow for a profit. Ergo, an added tax means a higher gas price.

There endeth the lesson.

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