Should the Federal Government Raise Gas TaxIf the Federal Government raises the tax on gas to $3 to $4 per gallon the economy would suffer. Peoples personal saving would decrease because their disposable income would decrease. The only thing that a gas increase would be effective for is to increase government revenues, but it would be at the expense of the economic growth, jobs, and family income. It is not any secret that Americans rely on mobility needs heavily. If the gas tax was increase to $3 or $4 per gallon other aspects of American families would suffer. We would sacrifice other areas of living in order to be able to maintain mobility. People would have to cut down on family travel and even little road trips to visit family members.

In the article U.S. reluctant to mirror Europe’s high gas taxes it talks about the effect that can be placed on the car market. It talks about changing the requirements for SUVs to meet the same mileage requirements as cars. Automakers feel that is taking a step to far.

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Trying to dictate to people about what vehicles consumers should buy. After reading this article I realized that American’s are lucky when it comes to gas prices per gallon. In France a gallon of gas is around $5.51 per gallon and $6.36 in the Netherlands. These prices sound unbelievable.

In these countries they encourage fuel efficient technologies and fund public transportation. Gasoline is the bloodline for America. As long as cars and other vehicles run on gasoline, the price of gas will continue to affect every part of our economy. The demand for gas usually increases during the summer months and holidays. The high demand can translate into higher gas prices. An increase can also occur when the world crude oil market tightens and lowers inventories.

Growing demand can outpace refinery capacity. Since there is a fear of one day being a shortage of gas maybe the United States needs to start investing in more public transportation like other countries. We keep waiting for gas prices to decrease but I believe that they are only going to get worst. The fact of the matter is that Americans are not going to stop traveling. Whether gas prices are $10 per gallon we will find a way to get were we want to go.