Prices and Politics: Lots of Ads, Little Connection; for a Real Issue, Look at State Tax on Gasoline

Living in the swing state of Pennsylvania brings the blessing of a near-constant stream of campaign ads.

This politician raised prices … This politician will lower them. It’s mostly nonsense, and it flows from both political parties.

Our representatives in the U.S. House and Senate have little to do with prices. Even the president, no matter who it is, doesn’t.

The size of commodities and financial markets is immense, making most government actions to sway prices temporary and ineffective.

One way government does affect prices is by adding taxes to them. At the state level, that can make a big difference.

People often mistakenly say Pennsylvania has the highest gas taxes in the U.S.

That is not quite true. California is No. 1 at 59.6 cents per gallon (from Kiplinger’s). Add the 18.4 cents of federal tax, and that adds 78 cents per gallon.

Illinois is No. 2, while Pennsylvania’s gets the bronze medal at 57.6 cents per gallon. That is a lot, and how the money is used has been questioned.

So when the inflation ads pop up … I’ll cut … He caused it … I hit the mute volume. When a politician claims to be fighting to cut prices, they lose credibility.

There are lots of real issues. This is not one of them.