In July 2011, President Barack Obama proposed a massive Democrat-sponsored tax cut. He is proposing a 50 percent gas tax break. Obama administration would like to require that new American cars and light trucks average 56.2 miles per gallon by 2025. Click here to read the full article.
According to the automotive industry, vehicle prices might drastically increase that consumers presumably ends up keeping their cars longer. Currently, the standard average is 28 mpg. By 2016, this is already set to increase by 34.1 mpg according to the agreement reached by Obama administration and the car manufacturers two years ago.
The idea of increasing the mpg in cars will be truly beneficial to everyone because this will drastically cut taxes in half. People will be able to save more money or use it for other means. The only downfall for this proposal is that the prices of cars and gasoline might possibly increase. If this happens, this just basically defeats the purpose of cutting taxes in half and helping people save money. If we can keep the prices of gasoline the way it is and the price of the new car is reasonable, then Obama's proposal will definitely help everyone financially.
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