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.
I have a chemical engineering degree from the University of Arkansas,
My advice to you young Sloth, once again. Stick to Engineering, leave Econ to those who actually know what they are talking about.
Lowering prices increases aggregate demand
Only assuming there is demand not being met. Far as I can see there is NO reason for increase demand since the existing demand is at saturation point. Their may be increases in aggregate demand over time, it is NOT, however, a short term outcome.
Glad the people that get it are showing up here. Cut the tax, make the system as efficient as possible. Get the government out of the way.
No, that is exactly my point. In this case supply is fixed, only demand is a variable. Without a change in supply, demand will set the same price point regardless of what the component costs are. It's really very simple math. If people will pay $5.00 for a gallon of gas, they will pay it regardless if the price contains taxes or not. Unless you find something that changes supply, then price won't change.
Don't hold your breath. An emergency is when he needs more money.
It's a liberal thing.
A lot of people on FR have been saying that the main problem is lack of refineries. Can I assume that you're not among that number? If so, how do you respond to those statements?
And what, in your view, has been the reason for the increase in prices, not just since the hurricane, but for the past several months?
I wish illegitimate governor gregoire of Washington State would stop fighting the citizens of the state who succeeded in gathering over 400,000 signatures to get an iniative on the ballot to repeal the recent gas taxes.
I saw gas for 3.13 (premium) at Safeway today.
And their is NO indication of any limitation in supply. Their maybe be some temporary shortages in your personal area but your "limited supply" is NOT verified by the observable data. That is an assumption that does not match todays drop in Oil prices of more the $1.50, the seasonal demand slump that ALWAYS occurs after the Labor Day Market and the drop of my LOCAL gas price by $.20 today. These all would serve as offsets to your assumption of "limited supply"
HOWEVER, if we are honest we will admit we are both guessing. I never figured on this hurricane would so gum up the normal market flow. You probably do not know about the increase pumping both the Canadians and the Saudis have announced. So let us try this. I will cut and paste this exchange to you as a freeper mail with the subject line "Do not open until Sept 9th. You mail it back to me then, and if the price I am paying for a gallon of gas is HIGHER then the $2.77 I saw as the cheapest price in my area today, I will post that you are right and I am wrong. I will save the receipt if you want to see it and snail mail it to you showing next Fridays date and price per gallon. OK?
OK professor, but what I said is exactly what happened in my state when there was a temporary gas tax "holiday". By the way, Milton Friedman was my prof. Do you know of him?
I paid $2.83 for Premium today at Ft. Huachuca, AZ. They were out of regular and mid-grade. One of the few perks of being in the military.
This is what all states should do!
Huh? How is it a stupid move? Gov Perdue just removed government from the equation and is letting the market go free!
If only the feds would follow suit....
...nothing would happen to gas prices. The increase has been driven by scarcity, so that sets the price.
I like this Gov. There's not a lot to like so far overall, but Miss and Alabama, and Florida of course, have pretty good leadership.
Contaire. Eliminating the various taxes on gas would yeild savings of over 50 cents a gallon in some states.
Illinois suspended State Tax several years back. They only did it less than a year. Trust me, government will return the tax, and still sleep soundly at night.
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