The Politics of Cutting Tax on Fuel

With Hilary Clinton and John McCain both saying they would cut tax on petrol, tax cuts have become a big issue. Interestingly, Hilary Clinton has been saying that she no longer takes the advice of economists. As I wrote in a previous piece it would be mistake to cut tax on petrol (gas)

To summarise:
  1. Other taxes would have to increase or government spending will fall. (Why do people think tax cuts will make them better off?)
  2. Help Combat carbon emissions and solve Global Warming
  3. Already sales of SUV's and Hummers are declining in America. People are choosing more fuel efficient cars. This will help reduce America's long term dependency on oil. See: High Petrol prices see Americans dump their SUVs at the Independent
  4. Thanks to Brightstar for this link on a transport review suggesting the benefits of increasing tax on petrol
  5. Americans could do with a bit more exercise - help reduce their obesity problem. 50% of car journeys are less than 2 miles.
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