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January 27, 2009

Say Hello to Your First Obama Tax Increase!
Obama's First Tax IncreaseHitting the US economy hard where it is already almost dead, Obama put the stake in the heart of the US auto industry. Barack Hussein Obama ordered the reversal of the federal government not allowing states to set their own auto emissions standards.

California had asked permission to do this during the Bush administration so it could tighten emissions standards even further than the Environmental Protection Agency had required.

This request was disguised as an environmental issue. It wasn't. It was simply a way to charge drivers more to register their cars by forcing drivers to buy new, more expensive cars that they don't want.

While you may not live in California, you're still going to pay more just like Californians will. This is because California has the largest car market in the nation. The automakers can not afford to makes different sets of cars for different states. This means new cars will cost more and your freedom to buy larger vehicles will be curtailed, unless you are the wealthiest of Americans.

Obama's and California's stupidity is based on stagnant analysis. They figure this is a way to get Americans to pay more for cars and increase tax revenues. It will have just the opposite effect.

People will not pay more for new cars. Older cars will stay on the roads longer and drivers will find ways of circumventing the emissions standards. This will mean that not only will the government not get the increased revenue from sales taxes and the taxes disguised as state fees, but they will lose the revenue that they would have received had they left things alone.

The government never saves you money and the environment always suffers more damage. Case in point: California introduced a winter blend of gasoline that contained a chemical called MTBE. They did this to oxygenate the gasoline to reduce emissions. It costs more to produce, gave poorer gas mileage and the MTBE was later determined to be a carcinogen that polluted the water supply.

TLG

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