There’s a HUGE problem with Dr. Charles Krauthammer’s ‘neutral’ gas tax proposal…

…it ISN’T revenue neutral.

The ‘Hammer’ proposes adding a $1-per-gallon federal gas tax at the pump. He posits that the ‘average’ weekly consumption of fuel is 12 gallons per American, so suggests making it revenue neutral by dropping the Social Security tax by $12 weekly per worker.

First, what happens to those who use MORE than 12 gallons per week? Screwed.

Second (and much more important), what about the extra fuel costs that industry gets hit with to transport their goods to market? Industry has to raise prices to cover them, and the consumer gets hit with higher costs on EVERYTHING they consume.

$12 more in a weekly paycheck doesn’t cover the hidden effects of bad tax ideas.

BlueCollar has a great deal of respect for Dr. Krauthammer, but on this he’s wrong.