Economic Essay Example | Topics and Well Written Essays - 1250 words - 6

Economic - Essay Example In the next segment of the paper, the cause and benefits of Trans Pacific Partnership related to international trade agreements that has become the headline of The New York Times will also be examined. As per the reports of The Washington Post, the gasoline tax has been static at 18.4 cents per gallon since 1993, as no Federal government has taken initiatives to increase the tax rate in last 20 years. However, as the oil price dropped by 40% in June 2014, many states considered reviewing the rate of the long-static federal gasoline tax. However, such increment in gasoline tax rate involves certain pros and cons as well as economic consequences (Ferguson 153). As per the newspaper report, the most important benefit that the US economy will experience from increasing gasoline tax can be attributed as the potential environmental benefits which may arise from decline in use of crude oil and gasoline. The rationale is based on the connotation that, in case of a higher tax on gasoline and its sub products, the citizen would opt for alternatives such as public transportation instead of personal car that will definitely bring social benefits in real sense. Moreover, as the total revenue obtained from gasoline tax is utilized in the Federal Highway Trust Fund, the Congress is planning to contribute the additional money accumulated from the incremented tax rate for the purpose of reducing budget deficit. The US government is also of the opinion that as increment in the US gasoline tax will encourage the citizen for using alternative sources of energy; such initiative will reduce dependence of US government on the largest foreign suppliers of crude oil, OPEC which in turn will bring higher stability in the entire American economy. According to the notion of Ex President, Mr. George W. Bush, high level of dependency in turn jeopardizes the economic growth to a