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The Governor is right and your assumption is wrong. you missed the big point. If the "record profit" gas company can make more money in GA then there will be much more supply in GA. The problems of shortages will be in the surrounding states, until they cut there taxes.

In economics the golden rule is there is no good tax. Just some are not as bad as others.

The Governor is right and your assumption is wrong. you missed the big point. If the "record profit" gas company can make more money in GA then there will be much more supply in GA. The problems of shortages will be in the surrounding states, until they cut there taxes.

In economics the golden rule is there is no good tax. Just some are not as bad as others.

Ok, Quick Shot, I'll give you that. I'm all for reduced taxes, though some are necessary for public goods. What some of us foresee is that the desired results won't happen. Prices will be just as high, just that the private sector will have the money. True, it will allow new supplies from other areas to come in, but overall in this country we have a lower supply than we had prior to Katrina (unless we import, but that will be more expensive since the gas companies overseas can sell their gas for more in Europe than here).

The Governor is right and your assumption is wrong. you missed the big point. If the "record profit" gas company can make more money in GA then there will be much more supply in GA. The problems of shortages will be in the surrounding states, until they cut there taxes.

You clearly know nothing about basic economics. There will be a shortage in the surrounding states until they cut taxes? Are you insane? How exactly would making gas cheaper (albeit temporarily) increase the supply? The exact opposite will happen. Tax or no tax, the market price of any good is determined by how much people are willing to pay. And since our demand for gasoline is mostly inelastic in the short term (i.e. we all need to get to work every day), the price will very quickly go back to the market rate.

Don't take my word (or the word of any economist) for it, though. Just track gas prices in GA and see if this idiotic tax cut has an effect.

It's nice to know that there are plenty of conservatives who are intellectually honest enough to abandon the knee-jerk "taxes are always bad, cutting taxes is always good!" mentality when it comes to serious economic issues. I'm no fan of taxes myself, but I'd rather the state of Georgia keep the money rather than just handing it out to the oil companies. (Though my oil stocks are up 30% in the last few months, so I suppose I should applaud the tax cut...)