Obama's gasoline prices; a highly regressive tax

An increase in gas prices from $1.78 a gallon--when Bush left office-- to $3.80/gal--todays price--is equivalent to a flat tax of 4.6% on a family making $23,000. That means that that poor family, based on typical gas usage by lower income families, will have to use nearly 5% of every dollar they make in a year to cover the increase in the cost of gas under President Obama. The poor simply can't afford that sort of cost increase without having to sacrifice necessities.  Because wealthier families spend a much smaller proportion of their money on gasoline they can absorb the higher prices with less impact. Clearly the impact of the increase in the price of gas is highly regressive-it disproportionately impacts the poor. Keep in mind that these poor families pay effectively nothing in Federal income taxes and may even get paid by the government through the Earned Income Credit.  Yet the massive increase in the price of gas under Obama is imposing a huge "tax" increase on...(Read Full Post)