News

The Right and the Wrong Way To Address High Gas Prices

Americans are looking for ways to cut fuel costs, with fuel prices at record levels. Two states provide a good model for how to do this…while the Biden administration and California consider going the wrong way.

Maryland and Georgia will temporarily suspend their gas tax to allow people to pay lower prices when they fill up their tank.

Georgia Governor. Brian Kemp, a Republican has signed a bill that will halt Georgia’s $0.29/gallon gasoline tax and $0.33/gallon diesel fuel tax through May. Maryland Governor. Larry Hogan, also a Republican, has approved a suspension of his state’s gas and diesel fuel taxes—$0.36 cents per gallon and nearly $0.37 cents per gallon respectively—for the next 30 days.

The two other states aren’t the only ones considering offering a discount to gas tax consumers. The report states that “Lawmakers from Illinois, Massachusetts and Maine are considering whether or not to suspend gasoline taxes in their respective states.” Wall Street Journal reports. “Connecticut Gov. Ned Lamont (a Democrat) and the legislative leaders reached an agreement to halt state collection on gasoline taxes until June.

According to the report, “And at the federal stage, some members are asking the Biden administration for fuel tax suspensions.” Journal.

This is arguably the good side of government action to reduce fuel prices—saving consumers money by temporarily foregoing taking some of their money.

The gas tax is primarily targeted at road and transportation spending. However, decreasing the revenue doesn’t mean spending less. While drivers might save money at the pump they end up having higher taxes to cover the gap created by tax holidays.

It’s also very gimmicky to temporarily suspend gas taxes as a response to political pressure. Ironically, Democrats are now attempting to cut gas prices. They have argued for decades that higher gas prices are better for the environment. Saving consumers money and temporarily not taking money from them is certainly a better option than handing out cash to stop inflation.

We now come to the other side. Some officials want to help consumers save money and subsidize gas purchases. Although briefly thought about sending gas cards, the Biden administration decided against it.

Many people feel that the suspension of fuel taxes does not help enough. But a break of some $0.30 per gallon—or more if the feds suspend gas taxes, too—adds up. Instead of treating everyone as having the same fuel requirements, it adjusts the price breaks to reflect the actual amount of gasoline purchased. Although it might not make a significant difference or drive down gas prices across the board this has the advantage that gas prices are less likely to rise.

But handing out government money to thwart high gas prices is like—pardon the pun—pouring gasoline on a fire. Inflation will rise if there is more government spending. Increased gas consumption means higher inflation. It would also be difficult to target the program towards people who truly need it and not everyone who is able to afford higher gas prices or don’t have the means to purchase much. It would also be difficult to stop fraud.

Good news: House Democrats have “vehemently opposed” the idea of a gas card, according to Axios:

The House Democratic Counsel On Wednesday, the White House published a list of reasons why gas card would not be an idea.

  • This would make it expensive and not be well targeted.
  • The effect could increase inflation. It won’t reduce costs.
  • The slow delivery of cards could delay tax returns by causing the IRS to be overwhelmed in middle of filing season.

California is however still looking at a $400 gas discount. This would function as a “free gasoline” card since it would be available to everyone who has income tax.


FREE MINDS

Jehovah’s Witnesses have become copyright trolls


FREIGHT MARKETS

This is a victory for consumers.Can a pandemic stop cord cutting? In 2021, cable TV providers lost more subscribers than 4.6million. According to data from Leichtman Research Group, “the largest pay-TV providers in the U.S.—representing about 93% of the market—lost about 4,690,000 net video subscribers in 2021, compared to a pro forma net loss of about 4,870,000 in 2020.”

Bruce Leichtman (president and chief analyst at Leichtman Research Group) stated in a statement that while the industry lost subscribers in 2019, net losses for 2021 were similar to recent years. The number of cable subscribers fell by around 4.1million in 2019, according to Leichtman Research Group.

Hulu and Live TV both gained 300,000 subscribers while Sling TV attracted 12,000 subscribers. FuboTV gained 581.927 subscribers. Leichtman failed to provide data on streaming services, such as Netflix and Amazon Prime or Hulu with no Live TV.


FOLLOWUP

Russia bans Instagram and Facebook after the Meta statement on Russian violence.Meta, the parent company of Facebook, announced this month it will allow violence calls against Russian troops invading Ukraine. Russia responded by banning Instagram and Facebook, in accordance with laws that prohibit extremism. NBC News reported that Meta would now be banned from opening Russian branches and doing business in Russia. The order comes after Russia announced March 4, that it will block Twitter and Facebook access following the Meta ban on several state media accounts.


QUICK HITS

• Police aren’t submitting crime data to the FBI:

• “The Supreme Court says it won’t review the case of a Seattle-based Christian organization that was sued after declining to hire a bisexual lawyer who applied for a job,” notes the Associated Press. The case was allowed to proceed by the lower court, but the Supreme Court said that it would not intervene Monday.

• “Anti-abortion states have a decision to make: If they want to strongly enforce criminal abortion bans, they will probably have to go after women,” writes Mary Ziegler at The New York Times. “Missouri’s latest bills show which way this decision will be made.”

• A new rule related to business emissions expands the Securities and Exchange Commission’s role and “could transform the SEC into one of the nation’s leading enforcers of climate-related disclosures.”

• “The second trial stemming from the Jan. 6, 2021, attack on the Capitol shaped up Monday to be a lot less of a slam dunk for the Justice Department than the first,” reports Politico.

• Schools in Minneapolis have been closed for 10 days due to a teachers strike.

• Abortion rights groups are trying a new tactic to challenge Texas’ anti-abortion law.

• Indiana Gov. Eric Holcomb (a Republican) vetoed legislation that would have prohibited transgender girls competing in school sports.

• Virginia has banned modifying cars so that the front bumper is higher than the rear.

• Some Chicago schools are reimposing mask mandates.

• Justin Amash on Ketanji Brown Jackson:

• More on time-change proposals: