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Gas War

roposed to increase the taxes put on gas. In 1993 Clinton proposed a gas tax that raised the prices at the pumps by 7.5 cents per gallon, a 6% increase of the price. Then in 1996, Bill Clinton made a proposal to raise gas taxes by an additional 2.5%. Clinton wanted to raise prices 10 cents per gallon overall in his four years in office, all part of his "deficit reduction plan". (6) Clinton’s entire campaign was based around not hurting the American people with taxes, but once in the white house, has made the record books with the highest amount of gasoline taxes ever. Taxes are so much a part of the prices we pay that "…in 1981 when pump prices where at an all time high of $2.27 per gallon, the taxes were just 27.7 cents per gallon. The real cost of motor gasoline to consumers fell by about a dollar per gallon between 1981 and 1995, but over the same period federal, state and local motor gasoline taxes increased by nearly 15 cents per gallon." (7) Taxes in the United states have increased an average of 15.6% in the last three years. mThis chart shows some United States cities and the price increases. Many factors influence the prices of gasoline. Gasoline prices are affected by the price of crude oil in the world market, supply and demand for gasoline, local market competition, temporary supply interruptions, government regulations, or taxes. Everyday new things can happen to change the prices that American consumers pay at the pumps. The United States is dependent on foreign oil and must continue to ensure stability in the Middle East, or until we have found alternate sources of energy. Taxes will continue to climb due to the rise of government control. Regulations will continue to become stricter until gasoline usage is more environmentally friendly. It looks as if gas prices will continue to fluctuate, but over time will tend to rise....

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