Perdue suspends gas tax increase

Good move. I agree with Erick BTW. The GOP should get rid of these automatic tax increases.

With gas prices continuing to spike, Gov. Sonny Perdue moved Monday to suspend a gas tax increase that was supposed to go into effect July 1.

Perdue’s decision will save most motorists 2.9 cents per gallon. The governor said the move will let Georgians know the state is concerned about gas prices and that the government doesn’t want to take advantage of the situation.

“I don’t think we can justify raising taxes on gasoline at a time of economic stress on families,” Perdue said.

If the governor hadn’t acted, the tax on gasoline would have jumped 2.9 cents per gallon, diesel 4.2 cents and aviation fuel 3.6 cents.

8 comments

  1. CHelf says:

    “I don’t think we can justify raising taxes on gasoline at a time of economic stress on families,” Perdue said.

    Ummm…can you justify raising of ANY taxes? Whether in good economic times OR bad ones?

  2. Bill Simon says:

    Fair point, Craig.

    On the other hand, these roads still need re-paving, and these bridges certainly need to be inspected and repaired.

    Can’t accomplish either of those in a time efficient manner if you do not collect enough taxes. Personally, I’d rather have a bridge be repaired than save 2.9 cents per gallon. But, I’m just kind of whacky that way.

  3. CHelf says:

    Bill,

    The problem is in the phrase “enough taxes”. And you also cannot do either in a timely manner when the agency in charge of said operation is so incompetent and filled with corruption.

    As has been mentioned having automatic tax increases are devious ways to set up a system of taking in more money while politicians can wash their hands clean of the whole process. The same ones who have been crying out about no tax increases without votes are strangely silent on changing these automatic increases.

    If the need is there, let them vote on it as it arises. Let them go on record voting for it and showing that the need is in fact there. Don’t put something on cruise control but then argue against this same concept in other areas. It’s as bad as these automatic pay raises for Congress. Speaking of which, if these “conservatives” in Congress won’t stop earmarks, why not designate them all for transportation rather than museums and other items of low importance? Just as the American taxpayer is cutting back on ‘impulse items’ you’d figure Congress could in fact do the same.

  4. jaybird says:

    This is not a tax rate increase, but a semi annual recalculation of the gas sales tax. As with any product when the price goes up. This is as much as tax increase as paying more tax on milk when the price of milk goes up.

    Why not freeze the tax on food when it goes up?

  5. Gildo says:

    I am not a tree hugger or anything like that…but not increasing the tax on gasoline is (if that is what is actually being done) extremely economically irresponsible. Declining state revenue is the next shoe to drop in the economy. States and municipalities spend almost twice as much as the federal govt. Why are we doing this in the face of a fiscal squeeze? We should be reducing demand not supporting it. …a little homework.. http://www.nytimes.com/2008/06/01/weekinreview/01uchitelle.html

  6. TM2000 says:

    I agree with Bill and Gildo. I have a contact in DC with the Federal Highway Administration who tells me that they are already spending more than they are taking in. The cost of building materials has skyrocketed and the taxes have not kept up. This reminds me of the old Simpson’s episode where the public school system is crumbling. All the residents of Springfield are up in arms and outraged so they have a town hall meeting. Principal Skinner stands up to address the town at the meeting and mentions the idea of raising taxes and then the same people who were complaining about the underfunded school system lambasted Skinner for even mentioning the idea of raising taxes. Wake up people! There is no magical solution!

  7. Gildo says:

    I apologize but I cannot help myself……concerning deferring payables and rising gas prices……..
    “We know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid…”

    “Inflation is a sinister beast that, if uncaged, devours savings, erodes consumers’ purchasing power, decimates returns on capital, undermines the reliability of financial accounting, distracts the attention of corporate management, undercuts employment growth and real wages, and debases the currency.”

    -Richard W. Fisher, President and CEO of the Federal Reserve Bank of Dallas

  8. John Konop says:

    FYI

    Cheney Knocks McCain’s Gas Tax Holiday

    WASHINGTON — Vice President Dick Cheney on Monday rejected a suspension of the federal gasoline tax as proposed by his party’s presumptive presidential nominee, Sen. John McCain. Cheney said it would offer little help to consumers coping with gas prices around $4 a gallon.

    The vice president’s critique went further than President Bush’s own comments on the idea, which appears dead anyway.

    “I think it’s a false notion, in the sense that you’re not going to have much of an impact, given the size of the gasoline tax on the total cost of the gallon of gas,” Cheney said when asked about the matter during a luncheon appearance. “You might buy a little bit of relief there, but it’s minimal.”

    The national average for a gallon of regular gasoline on Monday was $3.98, according to a survey of stations by AAA and the Oil Price Information Service. Of that total, the federal tax on gasoline is 18.4 cents per gallon.

    Both McCain, R-Ariz., and a contender for the Democratic presidential nomination, Sen. Hillary Rodham Clinton of New York, have proposed suspending the tax.

    Bush has said he would consider any idea from Congress, but he was not enthusiastic about it.

    Democratic leaders in Congress have shown little interest, too, and no votes are anticipated on the matter in the House or the Senate.

    The gas tax is the main source of revenue for the Highway Trust Fund that provides grants for highway and bridge construction and repair.

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