Friday, May 2, 2008

Story of the Week - April 28-May 2

Psst! They're pandering to you!


John, Hillary and Barack are running for President. After gas prices hit record highs for 17 straight days in April, John and Hillary both propose a gas tax holiday. For the entire summer, Americans won't have to pay tax on their gas, saving them 18 cents on every gallon of gas they buy. Barack thinks John and Hillary's plans are silly and won't save Americans much money. The Smith family from North Carolina is moving to California this summer. Mr. and Mrs. Smith figure out that if they drive to their new home, they will need to fill their car's 15 gallon tank 8 times. If gas costs an average of $4.00 a gallon normally, how much money will they save this summer if there is a gas tax holiday? Is it a significant amount of money or are John and Hillary pandering to the Smith family to win their votes?

The answer:

If gas costs $4.00 a gallon normally, it will cost the Smiths $60 to fill their tank each time. (4 x 15 = 60)

8 tanks of gas will cost the Smiths $480. (8 x 60 = 480)

With a gas tax holiday, the Smiths will save 18 cents per gallon of gas, so a gallon of gas will cost them an average of $3.82. (4.00-0.18 = 3.82)

If gas costs $3.82 a gallon, it will cost the Smiths $57.30 to fill their tank each time (3.82 x 15 = 57.30)

8 tanks of gas with the gas holiday will cost the Smiths $458.40 (57.30 x 8 = 458.40)

With a gas tax holiday in place this summer, the Smiths will save $21.60 on their trip cross country. (480-458.40 = 21.60)

Though it may supplement the purchase of snacks for the road, this is not a significant amount of money. ($21.60 = 6 lbs of trail mix for the road)

Therefore, John and Hillary are pandering to the Smith family for their votes.

1 comment:

brookLyn gaL said...

Um, also... that tax GOES somewhere. So the government will be missing out on $21 from each family that drives cross country. It adds up!!!!