Unexpected Tax Cuts

The lamestream media told you:

Green activists, environmental pundits, anti-foreign-oil interests and many in Congress and state legislatures have been clamoring for significant increases in gasoline taxes, to reduce use and force research into energy alternatives, renewable energy, higher mileage cars, and to disrupt our dependence on foreign oil.

The Uninvited Ombudsman notes however that:

Now that gasoline is at $4 per gallon and rising, all the green anti-growth fuelists are getting their wishes fulfilled, but unintended consequences are dogging them.

With gas prices high enough to slow consumption and encourage switching to low use vehicles like unsafe tiny cars and motorcycles, government revenue from gas taxes have dipped dramatically, causing politicians to sweat profusely.

Hard pressed for funds from gasoline taxes to build roads, infrastructure -- and multiple uses that have nothing to do with gas or driving -- cities, states and the feds are desperate for cash and not sure what they will do. Unalterable commitments to road building and various programs and entitlements were made and locked in before the revenues were generated, in typical government style.

Now that they can't squeeze more dollars out of reluctant consumers, they're in a bind and appear dissatisfied. Government generates no money of its own, forced by design to live off the backs of those who work and do produce goods and services.

The greens are thankful, though, since they can't be blamed for the problem, since they were unsuccessful in artificially boosting prices to the point where it would have the "desired" effect.

Tags: gasoline taxes