Georgia governor plans to lift state gas tax for rest of the month

AP Wires | 9-2-2005 | AP Wire

[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.

[Blessed]

>Of course, the cynic in me thinks that the transfer of tax funds to the coffers of the oil companies is, indeed, the 'desired effect'. Scary thought... the governor redirects tax dollars to the oil companies while scoring politically by looking like he's actually 'doing something' for the people.<

Explain how the taxes are redirected to the oil companies since they are collected by retailers and wholesalers not oil companies.These are the people getting killed by these price increases.They are making the same or in some cases less penney profit(not margin)they were making at $1 per gallon.

[over3Owithabrain]

My company bosses passed out $50 envelopes today to every single employee to help out with gas. That's real class and private business doing their part for their people. They won a lot of loyalty points with that move. Oh, and they closed the offices 2 hours early today!

[Blessed]

>Let's estimate what pump price that implies. Take $2.45, add the state gas tax ($0.075), the Federal gas tax ($0.184), mark it up 10% for transportation, credit card charges, and profit, add the state sales tax (6%), and this morning's pump price should be (drum roll)....

No less than $3.16 per gallon.....<

Actually this is a formula for going broke if you are a retailer.With a 10% markup rather than the cost plus 10% you used the price would be $3.20. A fair markup would be closer to 20% for the retailer.One drive off of 20 gallons wipes out all the margin on 200 gallons.

[steveegg]

Could we in Wisconsin borrow Sonny for a couple weeks? Despite having over 31 cents in state taxes (so much that Jim "Craps" Doyle diverted hundreds of millions of dollars to pay off the teachers union), and a minimum mark-up law that is the HIGHER of 6% of invoice or 9.18% of the wholesale price, he's blaming the high gas prices on Pres. Bush and Big Oil (need I mention that Craps is a DemonRAT?)

[Quick Shot]

Obviously you did not read your Econ 101 text. Neither the supply and demand curves are fixed curves. You play with one the other moves. The intersection is not as simple as the "tax and spend" group around here thinks about it.

The long term key is making the system more efficient. The least efficient part of the cost is taxation. Any thought that holding or increase tax is going to help the situation is not right. Let the markets sort them self out with out government interference.

[paulcox1978]

Explain how the taxes are redirected to the oil companies since they are collected by retailers and wholesalers not oil companies.These are the people getting killed by these price increases.They are making the same or in some cases less penney profit(not margin)they were making at $1 per gallon.

My bad. I was using 'oil companies' as shorthand for the companies all the way down the line (retailers, wholesalers, etc.). Of course some companies own the whole supply chain, from the drilling to the pump. I realize that while the prices for crude oil has gone up, it has not gone up as dramatically as the retail price of gasoline. But when a barrel of oil costs $4 to get out of the ground, selling it for $70 is a pretty hefty profit.

I don't, of course, begrudge the oil companies for making money. That's what they're there to do. In my own case, Exxon, Haliburton and the like have bolstered by stock portfolio in an otherwise weak year. More power to them. The tax cut seems a bit dodgy, though.

[Sooth2222]

I figured $3.16 at a minimum. It also suggests that a lot of the neighborhood stations are being restrained with their pricing.

Over here in New Jersey we have one idiot (moron/imbecile) of a state legislator who wants to cap gasoline prices. If I ever saw a formula for guaranteeing gas lines that's IT! I also remember the gas lines in 1974 and "Carter's Little Oil Crisis" in 1979 and I doubt I saved anything even close to minimum wage with the price controls considering the amount of time I wasted in the gas lines. I'll trust the free market a bazillion times farther than a New Jersey Democrat politician.

[okstate]

Why wouldn't the gas stations just increase their prices to where they would be with taxes?

[okstate]

That's how I feel about this.

[unixfox]

Maybe the Feds will follow suit.

If they do I will personally eat a dead rat and video tape it.

[Trust but Verify]

That is cool. I bet eveyone appreciated the gesture far more than the money itself.

[BlackjackPershing]

Their not going to run out of gas. Gas price takes disposable income out of the consumer's pocket and affects prices that small business must pay for the cost of doing business. Until prices stabilize, easing the burden on gas is a good move.

[weegee]

Those price increase can vary from station to station. Same city still has same old prices at honest retailers.

[pctech]

Maybe this will start a trend among other states as well.

[MNJohnnie]

Lead the way Georgia! Louisiana "Why aren't the Feds saving us". Georgia "If you will not LEAD in Washington, WE WILL".

[MNJohnnie]

paulcox1978 Since Aug 18, 2005

If he knew anything about economics....(to pay for roads, bridges, hurricaine relief, etc.) will now go to the gas companies who are already making staggering record profits.

Thanks for wandering over from DU and spewing complete NONSENSE. Basic econ lesson for you since you are so totally ignorant of ANY understanding of SIMPLE economic laws. ANY time you REDUCE the cost of your goods, you INCREASE the sales as long as you have approximately the SAME quality good and a constant or raising demand curve. IF the Gas Companies can sell gas with OUT having to serve as the tax collector, they can SELL at a lower price then their competitors and MAKE MORE PROFIT. If I sell 100 gallons of gas at $3.50 and then sell sell 150 gallons at $2.50 where do I make the most profit? When the lower price causes a slack in demand for the competitors they have to reduce price to stay competitive. Do the math and go back to your hole. The reason the gas companies are posting "RECORD PROFITS" is they are selling ALL THEY CAN. It's called Supply and Demand. The prices are a result of TOO MUCH DEMAND and TOO LITTLE SUPPLY. Go look it up in your Internet search engine before you have the arrogance to come back here an lecture ANYONE on Economics.

[X-FID]

Just wait, the shortages and long lines will follow. Write this down.

Man I hope not, I can ride out the price gouging for a while, but I hope to never see lines again.

[MNJohnnie]

Doing it NOW, on the verge of a gas SHORTAGE, is stupid.



Gee why did Oil prices drop between $1.60 and $1.90 depending on which market today? Why did the price of gas drop $.20 today here in Minneapolis today? So WHERE is your source telling you about a "Gas shortage"? Must not be an Oil man.

[MNJohnnie]

That is cool. I bet everyone appreciated the gesture far more than the money itself.

Yeah, funny how the Dem want "shared scarifies" until it is time for the GOVERMENT to do with less.

[MNJohnnie]

The price at the pump will immediately be increased by the amount of the tax "relief", resulting in no savings

Utter nonsense. Take an econ class and come back when you actually understand the Supply/Demand curve. So which moron on the radio or on a TV show is telling you people this utter rot?