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Gas Tax Hikes Are Not The Answer



Gas Tax Hikes Are Not The Answer
Christine Harbin Hanson

For most Americans across the country, the lower prices at the gas pump have had a direct positive impact on everyday living. The average price of a gallon of gasoline hovers around $2 across the country, saving the average household about $100 every month. These lower gas prices shouldn’t be an excuse to raise taxes, but that’s exactly what many federal and state lawmakers are poised to do.

Governors and state legislators are currently considering per-gallon tax hikes of 2 cents per year in South Dakota, 10 cents in Iowa, 10 cents in Utah, 10 cents in Texas, 10 cents in South Carolina, 13 cents in Illinois, and a whopping 25 cents in New Jersey.

In Minnesota, Gov. Mark Dayton proposed a 6.5% gross receipts tax on gasoline at the wholesale level, in combination with a number of other tax hikes. In Michigan, legislators approved a plan that could push per gallon gas taxes as high as 40 cents by 2018, pending voter approval. In Georgia, lawmakers are considering replacing the state gasoline tax with state and local excise tax on gasoline, which would effectively raise the tax per gallon from 45.4 cents to 53.6 cents.

Additional states seem poised to follow suit in proposing gas tax hikes as governors around the country unveil ambitious comprehensive transportation plans.

2 thoughts on “Gas Tax Hikes Are Not The Answer

  1. So instead of keeping the extra $100 a month in gasoline cost savings, the Dumbocrats in Trenton want to tax it back through 25c per gallon tax increases without even as much as an explanation why the Transportation Fund, which spends 12x the national average per mile of state road (and 3X the next highest state, Massachusetts, at $2.0mn per mile vs MA’s $675K) is $17 billion in debt… classy. All the while, each household in Ridgewood is also bearing the fuill brunt of the annual healthcare premium increases for our teachers and municipal workers, who are 100% insulated by their contracts from ANY increase in their out of pocket health care expenses. How is this fair to the rest of us who also have to pay our own bills? If you add the $624,000 annual (12%) increase in employee group health insurance in the Village’s 2014 budget, plus the BoE’s $270,000 annual (3.4%) increase in their 2014-15 employee health benefits, and divide by the 8,367 households in Ridgewood, that is a $107 annual increase per household JUST for health benefits for teachers & municipal employees. We could all use that money plus cheaper gasoline to save our own money and pay our own bills.

  2. Christie better veto this if it hits his desk

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