70 Duster, 340 4spd. Presently have 3.23 sure grip with 26 inch tires. If I go to 3.55 gears and 27 inch tire, will the taller tire negate the advantage of the lower gears? Looking for a little more punch around town.
Here is a simple chart, just find the closest gear ratio and tire size, and you'll get the RPM at 65 mph. http://www.quadratec.com/jeep_knowledgebase/article-26.htm In your case you are going from around 2696 RPM to 2872 RPM. That's only about a 6% difference (at any speed). I doubt if you'll notice too much of a difference by doing this.
Yeah it'll pretty much negate the effect of the lower gear ratio. Not just because the taller tire lower the rpm like a taller gear but those taller tires weigh more and take more energy to turn them. The good thing about them is taller tires generally hook better.
If you went with the taller tires and went to a 3.73 gear you should notice an improvement.