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.

[absolootezer0]

simple. people will first decry bush.."the governor lifted state taxes, why won't bush lift federal?" we should start a pool on which dim cries about this first. i bet teddy.
second, they'll start screaming about big oil. "look at them! they've been declaring RECORD EARNINGS!" sue! sue!"

[tfecw]

"EXACTLY!!!!!!!!! I'm a Perdue fan but this is a dumb move. It will only exacerbate the shortages. Oh, and who is going to make sure the gas stations don't just merely pocket the difference? Very dumb move right now."

Perdue could be a great man for all I know, but if we simply things and stereotype he's still a politician. Perdue is making the "correct" political move. People will love him for this, the refineries are coming back online and prices are most likely going to drop to pre-katrina prices in the next week or so. Now we all know that it will because supply is up. But he gets to point at his tax lift as the reason. Smoke and mirrors.

[numberonepal]

If Perdue had kept his hands off it, those stations would still have gas after the panic, and their prices would be back down today.

That's not what I saw. I saw people right behind the next one have the price on the pump go up. What did they do? They pumped it anyway. Those stations with $5 and $6 gas also ran out.

[Wyatt's Torch]

Yeah, on another board I said that it was a dumb move, "as long as supply was low." As supply comes back on-line, it will help. In the meantime, the increased demand due to lower prices will simply compund the supply problem.

[SittinYonder]

I thought the problem was shortages not cost. Won't eliminating the state taxes increase demand, thereby exacerbating the supply problem?

[fhlh]

wow it nice to see 'big government' providing some relief from 'big oil'

[tfecw]

"Yeah, on another board I said that it was a dumb move, "as long as supply was low." As supply comes back on-line, it will help. In the meantime, the increased demand due to lower prices will simply compund the supply problem."

yeah i agree. I was just sort of speculating out loud. I can only assume the Governor has tons of economist explaining things to him. I think he's banking that the supply increase will offset the demand spike when the tax goes into place. Either way seems like a risky career move. There are easier ways to fool the people into thinking you are actually doing something. ;)

[fhlh]

MANY MANY MANY people in my neighborhood did not drive to work today. .....it's time to start promoting working from home!! We have the technology and the abilites to do just that (except at the President's Ranch in Crawford, of course).

[atomicpossum]

This is not the right thing to do if there are supply issues.

[WoodstockCat]

I don't think it's a supply issue as much as distribution. I think we've got a hose in a knot right now.

[Quick Shot]

Your method is doomed to failure.... And yes I do know a thing or two about economics .... MBA grad from a good Big 10 School. Believe me government taxation will not cure this problem.

[Blessed]

>That doesn't offer much relief unless they are going to police the pricing at gas stations. Some store owners are gouging customers.<

What is gouging?What do you consider a fair profit margin?

[Trust but Verify]

Oh no, not somebody else who gets it!

[eyespysomething]

Yep, and they've 'just' discovered a huge oil spill from a leak out in the Gulf.

[atomicpossum]

Distribution=supply, in this case. If you can't get it because of the distribution, you've got a tight supply.

[Blessed]

>Hah, easier than stopping the gouging which is the national pastime in Georgia.<

I realize you have never done anything but draw a paycheck but why don't you define gouging rather than use it as an attack on someone who is employing people and trying to keep a business open.

[Trust but Verify]

Good one. It has been disappointing to see how many people are ignorant in Economics 101.

[Republican Red]

$6.00 was one or two places only in Georgia. One guy was reportedly charging $9.00 for premium. He is being fined $5,000 per occurance.

My husband talked to a few gas station owners while on a search for gas. It seems the supply is not in trouble. Regular deliveries are scheduled for today. Once again the media caused panic and there was a run on gas here.

Local news is reporting that this repeal of the tax would translate into a .15 cent decrease immediately in price.

Once supplies are replenished we should be at about $2.50.

[eyespysomething]

Actually at my work, there is discussion with department heads on having at least one person in every department take a day off, 4 day work weeks, (except for necessary employees), without a decrease in pay, and to telecommute as much as possible.

[tfecw]

"Good one. It has been disappointing to see how many people are ignorant in Economics 101."

I'm actually okay with that. The big disappointment is coming from the folks who see the econ post from FReepers and instead of checking the facts continue to push for the gas tax to be lifted as a means to drive down prices. It's misinformation that needs to be stomped down.