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Sticker Shock-$3 a gallon gas? Click the picture:
Posted on 09/02/2005 11:01:48 AM PDT by jern
ATLANTA - Governor Sonny Perdue announced today that Georgia consumers will be exempt from the state motor fuel tax through the end of September. The Governor signed an Executive Order calling for a temporary moratorium on state collection of all motor fuel taxes, which will go into effect at midnight tonight.
"My purpose in temporarily suspending fuel tax collection is to relieve some of the financial burden placed on Georgians by disruptions of our fuel supply resulting from the effects of Hurricane Katrina," said Governor Sonny Perdue. "In making this decision, I fully considered the fiscal implications. This moratorium will have no negative effect on the state budget."
The state tax on motor fuel breaks down as follows: A prepaid 7.5 cent excise tax is collected by the Georgia Department of Revenue on each gallon of fuel sold at the distributor level.
In addition to the excise tax, consumers pay an additional four percent sales tax on each dollar's worth of fuel sold at the retail pump.
As the price of gas increases, the amount of sales tax collected also increases resulting in an increasing tax burden on the consumer as gas prices rise.
(Excerpt) Read more at news.mywebpal.com ...
Best thing I have heard all week!!
Hmmm..... The President is asking people to cut back on gas use, and this seems like it might encourage people to use and buy more fuel.
Gutsy move.
Hey, that means stations can raise their prices to make up the difference!!
They'd better have their supply issues fixed.
I don't think it makes sense. He should have cut some other tax, if he wanted to offer some relief. This just encourages people to buy more gas.
That's what it takes.
The governor obviously WANTS shortages.
If it has no impact then how about making it permanent?
Now THERE'S a leader.
Hope he runs for President.
I'll bet that Abdullah, and all the other station owners, will not cut the retail price by $.22.
Or, they will knock the price back from $3.50 to $3.25 at midnight, then at one AM the guys will be back at the signs increasing the price to $3.60.
Leadership, we have now seen.
I agree. We need to get rid of the COMMUNIST EPA and start building refineries; and start drilling for all the oil that we have in our country. ANWAR Gulf Coast and........
Oh, boy — a 5% discount! Happy days are here again! IIRC, GA has the nation's lowest gas taxes (or darn close to it).
Coincidentally, I was just remarking the other day that, with the price over $3, it no longer pays to drive across town to save 15¢/gallon.
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Sticker Shock-$3 a gallon gas? Click the picture:
No it doesn't make sense. Anyone knows that will only increase demand which ultimately raises the costs in the end. This will result in long lines and shortages.
Basic economics.
Don't worry. Responsible retailers will adjust their prices accordingly. If I read the article right, it only amounts to a measly 5% of the total price.
Supply and demand reigns, with or without the government's take. (Government interference is a different matter.)
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