Opinion: Long Island Higher Fuel Prices Eating Up Stimulus Money

There is no doubt that the 1% are not changing their life style due to the over the 30% increase in fuel prices since the power shift and direction in Washington. Obviously for some billionaires inflation will make billions as all their real estate assets increase in value. As a matter of fact every home owner on Long Island has noticed the value of their homes has also increased more than enough to pay fuel bills for the rest of their lives.

The problem is the opposite is true for those renting and working on set salaries and by the hour wages. It’s as if the new “green environment” changes in Washington are not only attempting to save the planet but also punishing the working class and poor for not owning their homes and having vacation homes. A policy adjustment is necessary.

Rents are going up rapidly as are the fuel prices but not the fixed incomes. Therefore retired folks on pensions and hourly and salaried wage folks are experiencing an erosion of money to pay their bills that is gaining momentum.

As all fuel prices go up so does the amount of money NY State collects in state taxes on fuel fixed on a percentage of the price of gas. So in effect Albany is getting 30% more gas tax revenue and no doubt that amount of state tax revenue will grow because gas prices are heading north to maybe $4 a gallon, perhaps before Labor Day! This will only cause more inflation, and hurt those who’s income or high priced assets are not also increasing by 30%.

However, for some Long Islanders their assets and their compensations are increasing much higher than the inflation caused by fuel increases. Of course the drought throughout the farming areas of California is also causing the phenomenal rise in food prices along with the way the Covid pandemic effected all business. This is a remedy for a perfect storm with the 1 % very wealthy insulated from the pain that will only increase for perhaps at least half of all Americans and specifically Long Islanders.