Governor Granholm: Symbolism over substance
The Grand Governor wants us all to sign a petition so that President Bush will do something about gas prices. Funny, I didn't think the President was the one who set gas prices, I thought it was the market. Perhaps she should go back to Econ 101 and learn about supply and demand. And what happens when government intervenes? (can you say shortages/rationing/limited supply?) Maybe if the Governor really gave a rat's behind about us poor common folk she would consider reducing the windfall that the state treasury is reaping. The state sales tax is collected on the retail price (including excise taxes...don't you love paying tax on a tax?) so by her calculations sales tax receipts on gasoline are up 240% since 2001. And let us not forget the much needed windfall profits tax. Could someone please explain to me how a tax increase will lower the price of gas?
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