Posted on 09/02/2005 9:27:15 AM PDT by Thanatos
Georgia governor plans to lift state gas tax for rest of the month
Eds: Moving on general news and financial services.
By DICK PETTYS Associated Press Writer
ATLANTA (AP) -- Georgia Gov. Sonny Perdue said he will sign an executive order Friday that will exempt consumers from state motor fuel taxes through the end of September to "relieve some of the financial burden" in the wake of Hurricane Katrina.
The order will remove the 7.5-cents-a-gallon tax and a 4 percent sales tax on gas, the governor said, and was set to begin at midnight.
The move comes as gasoline in some parts of the country has risen well above $3 a gallon.
The price at the pump will immediately be increased by the amount of the tax "relief", resulting in no savings. When the tax returns, the price will be raised again, by the amount of the "new" tax. So people will end up paying more per gallon than they would have if the Gov. did nothing.
Don't forget the 4% sales tax.
And it's not $6/gal, it's hovering around $3.15/gal. The $6 price was one station during the height of panic; nobody's paying $6/gal when it's $3.**/gal a block away.
Saw $3.09.
great idea.
Dear Fellow Marylanders:
Thank you for contacting the Office of the Governor. Please be assured that each piece of correspondence is reviewed on an individual basis to ensure all concerns expressed by the citizens of Maryland receive full consideration. Please accept this as acknowledgement that your message has been received.
Once again, thank you for contacting me. I benefit by knowing your views.
Very truly yours,
Robert L. Ehrlich, Jr. Governor of Maryland
Original Message
Issue - General Comments
Subject - Gasoline Taxes
Dear Governor Ehrlich,
Please follow Georgia Gov. Sonny Perdue's lead...
ATLANTA (AP) -- Georgia Gov. Sonny Perdue said he will sign an executive order Friday that will exempt consumers from state motor fuel taxes through the end of September to "relieve some of the financial burden" in the wake of Hurricane Katrina.
The order will remove the 7.5-cents-a-gallon tax and a 4 percent sales tax on gas, the governor said, and was set to begin at midnight.
The move comes as gasoline in some parts of the country has risen well above $3 a gallon.
Thank you,
Registered Republican Voters and Maryland Residents
A $0.60 to $3.00 price difference overnight?
It has already happened across America.
Bzzt. Dropping the tax means one less cost in gasoline delivery. Gas stations that don't drop the price accordingly will be undercut and outsold by those that do (having recognized they don't have an extra $0.075+4% overhead to pass on to consumers). The price WILL go down; perhaps asymptotically and never quite reach the full theoretical drop, but it will drop significantly.
Now let's make sure he doesn't tack it back on later...
No, small business is being killed and the economy as well from the shock of the hurricane and the gas shortage.
This will stop the economy dead if short-relief is not given.
Cut the tax.
You think the economy will be better if people run out of gas?
Are you saying higher taxes is a good idea? Since when did FreeRepublic turn into DU???
If Arnold tried to do this, the unions would have an ad on the air within hours saying he's trying to kill our children even with the money not going to education.
I wish this could be done at the federal level and in *this* state. Besides, they'll just later jack up the taxes temporary to make up for revenue losses.
>A $0.60 to $3.00 price difference overnight? <
Can you explain why that is gouging? What is a fair profit margin for a retailer in your opinion?
If you think tampering with the price is going to be the answer, then I'm sorry for you.
Some have given it a good shot, but you can't reason people out of some things.
Rarely, if ever do people have a full tank unless they are refilling after it's down to about 1/4....
Further, the shortage of regular is a result of people dropping down from Premium.
The people are part of the problem.
>If you think tampering with the price is going to be the answer, then I'm sorry for you.<
Show me where I said that.You are the one calling people gougers.
If your logic were correct, then the government should double or triple the gas tax because it would mean more revenue but wouldn't, as you said, change the price. (yeah, right!)
Where did you get your econ degree, btw?
Yes. Lowering prices increases aggregate demand. Increasing demand in the face of limited supply is going to cause the prices to rise until they reach equilibrium. Prices will go right back to where they are now, the money will just be in someone else's pocket.
You are just wrong.
And, BTW, I just spent a semester in Macro Economics. When was your last economics course?
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