Our state. like most states, is looking for more money. With our unemployment above 9%. Where do you go.
The solution they think of is raising GAS TAX.
Earlier our Government was telling us to combat high prices drive less. Then we had the clunker thing. (All that accomplished was taking many a vehicle the lower income people could afford to buy and do necessary travel), out of service.
Now Our State Servants, have an attitude of: if we need money add taxes, or increase taxes, or somehow get the people pay for it. An Aside here. I just looked and our Servants in the state capital make in excess of $30,000 a year for about 2 months of service. Not bad for a part time job.
Any way now with less gas sales due to the economy, and as I see it Price Gouging by the greedy oil companies. Price in our state is now, as I write, is $3.55 9/10 a gallon for regular. We pay sales tax on gas at the rate of 7% (supposedly pre-tax STATE and Federal), we don’t know for sure as it is figured in at the pump. We presently pay 18% a gallon State tax. With 18.4% Federal tax. I’m not a mathematician so I won’t TAX my brain to figure out what the untaxed price of gasoline is. Just guessing total tax Federal what 65 cents, a gal. and about the same for State. That takes the price to what about $2.25 per gal. which would make us paying about 15 cents per gallon sales tax. Hmmm. Looks to me like the Government is making more per gallon than the dealer. So right now it appears that our State government is making about 80 cents a gallon from taxes. That with no expenses. I say no expenses but the dealer gets maybe a penny or two for collecting the sales tax. Will our state be satisfied making $1.00 a gallon. That would be about a 20 cent hike in taxes. Like I said our state likes taxes. You pay tax on everything you buy, rent, use, sell, earn, we even pay sales tax on every game we bowl.
Use less gas. Pay more taxes per gallon. Combat greedy oil companies use less gas, they raise their price so they can live the high life at our expense.
To me we taxpayers are in a no win situation. Government and Oil Companies are going to maintain their profits plus, regardless of the hardship it brings the people. Perhaps the hardest people hit by this is the people out of work and the retired person who has lost his savings due to the economy. For these people it is like locking them in their homes. Limited income will only stretch so far.
When gas prices rise, so do prices of food, and about everything else. The increased cost of production and transportation has to be absorbed somewhere, (we the consumers). Oh and a bonus for the STATE increased price means more sales tax money.
That Is How I See It.