This should not be a big secret, except that it is politically dangerous to say it so clearly. Yet, even a casual observer can see it and policy experts know it.Continue reading “Let’s Be Honest and Admit It, Biden Wants Higher Gas Prices”
Yesterday, the head of petroleum research and analysis for online tool GasBuddy said that the average price of gas in the US had hit an all time high of $4.351 / gallon.
May 2022 8.3%
Jan. 2021 1.4%
Florida is projected to run a large budget surplus and so the state just passed a bill into law that would give tax breaks to Florida resident struggling to battle inflation. And that is the way it should be.
When the Federal government was giving out money for coronavirus relief, it gave states more money than they could spend. Literally. Almost every state in the Union is running budget surpluses in the hundreds of millions of dollars and for large states it is in the billions.
Rather than start some new government programs, that would create spending for years to come, Florida decided to help people and families that are battling inflation. The new law creates tax breaks for things from diapers and baby formula to new tools for the skilled trades. It suspends the state gas tax for a month and, in addition to the normal tax holidays for the back to school and hurricane seasons, it creates a tax holiday for things such as canoes and kayaks to start the summer.
The total package will return an estimated $1.1 billion to citizens of Florida, money that originally was to be taken by the Federal government in taxes. Well done, Florida.
Depending on your dinner preference, here is the cost of Easter dinner compared to last year at this time.
- Ham +14.6%
- Beef +16%
- Chicken +13.4%
- Eggs +11.2%
- Biscuits/rolls +10.8%
- Sugar +7.5%
- Carbonated drinks +7.4%
Inflation rose again in March, with consumer prices rising 8.5%, the highest rate since 1981. This is the seventh consecutive month that prices faster than the previous month. Food and housing costs were up significantly. Beef and pork prices were both up over 13%.
Showing the impact on working households, real wages—wages adjusted to account for inflation—were down 2.5% last month.
Yet the Biden Administration is still proposing to pump more money into the economy and has proposed yet another “covid relief bill” that would exacerbate inflation even more.
In February, core consumer prices rose 6.4% from a year earlier, the highest rate in 40 years. The core CPI (consumer price index) does not include food and energy prices since those tend to be volatile and somewhat seasonal.Continue reading “Inflation Is Worse Than We Think”
If we really want to support Ukraine, oppose Russia and believe Putin is evil, why does President Biden refuse to say we will stop importing Russian oil? That is the only thing they export and from which they get money.
For that matter, we can talk about short-sighted policy and lack of thinking ahead…why would a nation voluntarily go from being energy independent to having to rely on others for energy without / before having another alternative?!
If we hadn’t made that move, we wouldn’t have to worry about whether refusing to buy Russian oil would drive up prices too much and we wouldn’t have to beg Saudi Arabia to pump more oil, as we did last week.
News of the week that you might have missed, but won’t want to miss.Continue reading “Quick Takes”
News of the week that you may have missed but is worth catching.Continue reading “Friday Quick Takes”
The federal gas tax is 18.4 cents per gallon and goes into a trust fund to pay for highway projects and public transportation. Two Democratic Senators have proposed a gas tax holiday, in response to the rapid rise of gas prices over the last year.
Setting aside the idea that it will add more money to the national debt, the idea of reducing the gas tax to help working families and truckers is a very good one. The only question is why it is only temporary? Well, not coincidentally, the two senators who are proposing the tax holiday are up for re-election this year so that answers most of the question. However, the impact of energy price inflation has gone a long way toward wiping out any wage increases and so gas tax relief is a welcome step.