On Proposed Solutions to High Gas Prices

Clinton and McCain’s suggestion of rescinding the federal gas tax will likely have no effect on the price at the pump, and could lead to gasoline shortages. The gasoline supply is fixed by our refining capacity, and refineries are running at nearly fully capacity. It’s likely that a tax “holiday” will have no positive effect on gas prices, and could backfire badly, leading to gasoline shortages. The federal tax on gasoline and diesel goes to the Highway Trust Fund, which is used to pay for repairs to roads and bridges. read more

[Tags]gasoline, prices, tax, capacity, fund, gas, gas prices[/Tags]

Share This