State Senate votes to suspend State gas tax
Don’t worry, nothing will come of this cheap political stunt. It will die in the Assembly - rightfully so.
The D&C has an AP article about it (sorry our link widget thingy doesn’t appear to be working correctly)
http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20080508/NEWS01/805080380
But here are the salient points which prove once again like oil and water - Republicans and Economic knowledge simply don’t mix. As we have been saying in previous posts about the Gax Tax - prices won’t be passed on to consumers. Here is an example
Indiana and Illinois suspended 5 percent sales taxes on gas in 2000, but a report from the National Bureau of Economic Research found only a 3 percent reduction in prices.
But this paragraph struck out
Still, any increase in demand for gasoline that resulted from lower prices would tend to drive prices back up.
Yep - ever notice how an announced rise in oil IMMEDIATELY raises prices at the pump? Of course, the gasoline in the ground at the gas statation was purchased at a lower price but prices rise.
The Gax Tax is DOA - but the State Senate knew this. This is simply prepping the electorial battlefield as the State Republicans struggle to maintain their narrow majority in the Senate. Can’t you see those mailers now? I mean remember the ones about the Drivers License? Sorry this isn’t about Democrats - this is about Republicans who are using a cheap political stunt in an attempt to win an election. Oh, Dem Senate Candidates - make sure you have a budget for the necessary counter mailers
(ed note when we get the link thingy back on line I’ll add some additional links)
I want my old comment back!
So much for the D&C. Their editorial board thought the suspension was a good idea.