Day by Day

Monday, May 19, 2008

Liberal math is not your friend

From this little gem:

Gas tax holiday would cost state $126 million

We discover that, lo and behold, reducing taxes will "cost" the state money.
The gas tax holiday proposed by Sens. John McCain and Hillary Clinton would save the typical Washington driver $28 this year but cost the state about $126 million in lost highway money and more than 4,300 highway-related jobs, according to a recent report.
These are, of course, spurious numbers because during the summer months is when people are most likely to vacation. Thus, fuel usage will spike outside the "average range." People fire up the motor homes and RVs. People drive hundreds of miles to reach parks or relatives or resort locations. People fill up their jet skis and motor boats and ATVs. So the individual savings will likely be much higher.

But again, we are also brought back around to the fact that this just means that much more money "lost" for The State. Thousands of jobs LOST! Do you HEAR ME! People will likely become HOMELESS if we lose this gas tax! AAAUGH!

So, what is Ms. Clinton's proposed solution to offset the "loss" of "income?"
Clinton, of New York, Obama's rival for the Democratic spot, also favors a summer gas tax holiday but says she'd replace the funds by imposing a windfall-profits tax on oil companies.
Which, if you know anything at all about economics, will be directly reflected in HIGHER PRICES AT THE PUMP to offset their profit loses to higher federally mandated "profit taxes." So, when we save $0.18 per gallon at the pump, but then the oil companies jack the price up $0.15, what's the net gain, really? Isn't there some old saying about giving with one hand while taking with the other?

In the example above, losing three months of gas tax income is forecast to cost the state $126 million. Times four quarters, and that's $504 million a year. 500 MILLION DOLLARS. I've driven on Washington's roads. Does anyone really think we're getting $500,000,000 a year's worth out of them?

But it doesn't stop there, does it? They want a tax on gas to fight global warming, a tax on cigarettes to pay for children's heatlh care, maybe next a tax on candy to help fight millfoil in lakes and streams. What? You can't afford an extra $7 a year? But it's for the environmentchildrenpoor! Besides, you probably won't even miss it.

It's like walking into Sears, and seeing the little sign that says you can take home this riding lawnmower for only $6 a month! Wow! I can totally afford that! And then the washer and drier set for only $11 a month. Wow! I can afford $11 a month, even on my meager salary. Why not? Then upstairs, you notice that you can get a plasma screen TV with surround sound for only $16 a month. WOO-HOO! $16 buck? NO PROBLEMO!

Uh, wait a second there, spud. 6+11+16 = $33 a month. D'oh! Wait, I can't afford that! Yeah, no kidding.

These nickle and dime taxes add up, don't they? Every time the politicians go to the well for a "few dollars" to pay for this or that great social program or to bail out this or that failed idea, they couch it in terms of social responsibility, of sacrificing for the greater good. They of course fail to remind of the fact that last year they wanted another $10 per person, the year before $25, and that next year they'll probably ask for another $15. Every year they take out another "just a little bit" until it adds up to quite a lot indeed.

The reality of it is that politicians have never met a tax they didn't like. And once this new "tax to pay for X" is in place, The System becomes used to the new infusion of cash, and fights against its reduction or cancellation as a "loss of income." Which should tell you, right up front, that this money is being put towards a whole lot more than for what it was originally billed.

Which also means that, once in place, taxes are almost never repealed or reduced.

If they take too much more of my money to help the homeless, I'm going to become one of them myself! Which is cool, because then I'll qualify for welfare, food stamps, and subsidized housing! Maybe I'll even vote Democrat!

Heeyyyy...Waaaait a minuuuute....You don't suppose? Nahhh.....

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