Pretty straightforward, eh? When the price of petrol goes up, one starts to drive less. And for governments who end up taxing everything that moves, they end up getting lower amounts of revenue. Laffer Curve. Welcome. Well, even I, who drives very rarely, have found this behaviour. So its good to see the results here. I quote:
The government has lost almost £650m in tax revenue in the first 12 weeks of this year thanks to a drop in the amount of petrol and diesel being used by British motorists compared with the same period three years ago, according to the AA.
And this isnt going to change, the government will keep on increasing or at least not decreasing the level of taxation. The voracious monster that is the damn government and public sector will inexorably keep on increasing its level of parasitic blood sucking. When will they understand that this is frankly not sustainable?
I am actually fully cognisant of the train crash in the USA in terms of the debt ceiling and the repercussions on the economy if the debt ceiling isn't raised. But sod it, somebody has to draw the line somewhere. You simply cannot keep on spending and asking my daughter to pay for you. No thank you, you have to take the pain today, reduce spending and reduce your life style.