Rising Gas Prices

Political junkie or not, there is one thing that all Americans are always concerned about—gas prices. Why gas prices? They affect everyday life and the economic markets as a whole. As soon as gasoline prices increase so does the cost of transportation, the cost of labor and production, the price of goods, and all of these aspects directly affect consumers and workers.

Obama has recently been pushing to repeal United States tax breaks that benefit oil and gas companies. The repeal would give the American government $4 billion more dollars, and Obama articulates that this money should be used to invest in alternative energy instead of subsidies to oil industries, which it is being used for now. So why all of a sudden is Obama directing his attention to the big companies?

Well, for one it is an election year, and all politicians know that once gas prices go up, approval ratings go down. Additionally, not only is America demanding more oil, but also so is India and China. The more demand means the less supply of oil and the higher the prices.

Some analysts predict that gas prices are going to rise to $5 a gallon this summer. If this occurs, you can believe that Obama’s rating and chance of getting elected to a second term is going to drop significantly.

To avoid this, Democrats want Obama to tap into the oil reserves, which would temporarily bring gas prices down. Obviously, Republicans are not in favor of this, as they want the incumbent president to lose in the upcoming November election.

In addition, Republicans are blaming Obama for the current mess that we are getting into. They were in favor of the Keystone Pipeline, which Obama rejected.

I personally believe that tax and oil loopholes and tax breaks should be eliminated, and that money should be invested in alternative energy—our future. America has always been the leader in new technology and innovation, so why not keep that trend going and invest in clean, safe energy? However, I do not think we should tap into the oil reserves. With chaos in the Middle East, our reserves may become extremely pertinent in the future.

Call me crazy, but what I am an advocate for an increase in progressive taxation on gasoline. Currently the progressive tax is at 18 cents; if it was raised to 50 cents, consumers would not be able to blame politicians for the rise in prices but rather it is themselves who would have the control over their consumption.