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April 15, 2010

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DJL

The average taxes charged on fuel in the USA is roughly half of what is charged in Canada: $0.51/gal in the US, $1.19/gal in Can (in US$) based on 2009 figures. As we've all seen, any kind of significant increase in fuel costs results in an increase in just about everything else due to increased shipping costs. This means an increase in inflation. Given the current state of the US economy (which is still in serious trouble), any kind of serious increase in the price of gas would likely turn their "Great Recession" into an actual depression. And I honestly believe it will be years before the USA economy fully recovers. So unless the entire US Congress decides to commit political suicide, the chances of a significant increase in the US Federal gas tax is zero.

William Trent

Dear Mr. McKenzie,
I am sure you are right when you suggest raising the price of fuel to curtail use. It seems to have some effect on the American drivers. Fewer trips. However, we are conscious of using more fuel when in the US than we do in Canada. I have discussed this with a local mechanic here in Florida and he blames the amount of corn juice in the gasoline. We usually get around 25 miles to the gallon in Canada but our milage drops to 17 miles to the gallon here in Florida. is it possible the amount of corn in the fuel has an effect on milage?
Thank you in advance for your interest in this matter.
Sincerely,
Bill Trent.

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