Raise Taxes, Lower Gas Prices...Uh-huh.
Surprise, surprise, surprise. Our national congress is feeding off the economical ignorance of the public and are threatening to levy taxes on oil companies for making "obscene profits". Now, if you've read The FairTax Book, which is in paperback now, you understand that corporations are only an instrument in making money. They don't pay taxes, they only funnel that tax money to the federal, state, and local government.
If there is an increase in taxes on oil companies there will be a couple of possibilites: 1.) price of gas goes up even faster due to the taxes being passed on to customers or 2.) supply of gas goes down further due to the greater cost of production creating a shortage and raising prices.
I would not doubt that members of congress will call for a price cap on gas prices when they reach the $4 mark. Actually, when inflation is factored in we're not paying near as much for gas as back in the 1970s.
People speak of conservation. This is an excellent idea, but I don't think people will actually start to conserve until the prices reach that point where people will trade in the Hummers and ginormous F-350s for something more fuel efficient. Gas prices are obviously not high enough for people if they can still drive their SUVs. Maybe if we all do like Josiah and get scooters...
