Taxing You at the Pump

According to a recent BusinessWeek.com article, Ford will begin selling a compact car in 2009 which will get 65 mpg, but Americans will not get the benefit of it because Ford will only be selling it in Europe. This is due in part to profitability and logistical reasons because the car runs on diesel. But I had a strange feeling our government regulations might play a part in it. Reading over the article, my hunch was confirmed.

“Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline.”

Once again, taxes aimed at specific businesses, namely transportation, are hurting average Americans like you and I. By targeting this specific segment of the economy, government is helping hurt the growth of fuel-efficient engines. The moral of the story is simple; any tax that government imposes on businesses ultimately is passed to the consumer in higher prices or unexplored markets resulting in loss of potential savings. The government can’t tax business without hurting you and I the consumer.

One thought on “Taxing You at the Pump

  1. Paul, your last sentence is absolutely true. And the fuel industry is only the most obvious example. I do not understand why people who are otherwise intelligent do not understand that when the cost of doing business goes up, so do prices! And if the cost of business goes up significantly enough, jobs go overseas. Lowering tax rates, both business and individual, will create jobs, creating a broader tax base, thus increasing the amount of taxes paid in to the government.

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