Blog: Dermot Cole
U.S. chamber backs higher federal gas tax
Published Friday, July 17, 2009
While Lt. Gov. Sean Parnell is pushing the Legislature to continue a suspension or repeal the state's 8-cent gas tax, the U.S. Chamber of Commerce is calling for an increase of about 10 cents in the federal gas tax to build and fix the nation's crumbling roads.
Some legislators are predicting that it will be next to impossible to approve a bill on the gas tax in one day, so Parnell's pitch may not go anywhere.
The 18.4 cent federal tax has been in place for 16 years. The Alaska gas tax, which was suspended last year, has been unchanged for decades.
"The chamber says it would support an increase along the lines of what a federal commission suggested in 2005 -- around 10 cents per gallon right away, followed by annual increases of about 5 cents for the next few years and then subsequent increases to keep pace with inflation," the Washington Post said.
For more, go to http://voices.washingtonpost.com/44/2009/07/15/chamber_of_commerce_urges_lawm.html?wprss=44
This is lame
Legislators are correct...the issue of Alaska's gas tax will require careful consideration and not simply a knee jerk reaction, moments before the witching hour.
A one day Special Session of the Legislature to 1.) Over ride of Governor Palin's vetoes and 2.) confirm a replacement for Lt. Governor, as Sean Parnell ascends to the Office of the Governor, is a plate full, considering the Constitutional questions that arise with the Lt. Governors designation and line of succession.
With the US Chamber of Commerce supporting increasing federal gas tax larger than the State of Alaska's 8 cents, maybe the focus for tax relief may be better directed to the federal government during this "economic bump in the road".
I though the all important stimulus bill was a fix for roads...Shovel ready as our leader would say.
Get used to it. We will be seeing all kinds of new and increased taxes in the coming years. All this bailout and stimulus money has to be raised somehow. If you are lucky enough to still have any money, the government will figure out a way to get it from you and give it to someone who doesn't.
IF we need to REINSTATE the fuel tax, how about linking it to a percentage of the federal tax? It would be easy to compute, and could represent something which is explainable (was going to say justifiable but I do not have enough information). It does seem that something like a "user fee" makes sense to maintain the highway infrastructure.
The 8 cent issue is frustrating. I know the price of gas at the pump did not go down 8 cents when we suspended tax last year. But I know the price will go up at least 8 cents if we reinstate. Maybe we should have another investigation...
I generally like use and consumption taxes over income and corporate taxes as they tend to be simpler and less distortionary.
I'd prefer a 3% tax on all energy instead of a flat 8 cents on road fuels. That way it would go up as oil prices do and give us some extra incentive to use less.
Hard to believe the U.S. Chamber of Commerce is supporting a gas tax increase!
A little tax here, a little tax there, and pretty soon you're paying close to 50% or more (for the "wealthy") of every dollar to the local, state, and federal government. Tater's plan of 3% on all energy will likely become a nationwide reality with Cap and Trade, only more so. Whatever the percentage is, it will be not just on energy, but on every shipped item that you buy. Like food, for instance.
With the likely coming Cap and Trade tax and national health insurance tax, we already "enjoy" gas tax, energy tax, ss and fica tax, income tax, property tax, business tax, government licensing tax, capital gains tax, sin tax, estate tax and on and on.
I think that we've lost control, thanks to a cradle to grave philosophy that gives us this "nanny state". The problem with this approach, as Margaret Thatcher said, is that pretty soon you run out of the other guy's money. The government taking half, or more for "the wealthy", of our income will eventually stifle all productivity. Strangle the life right out of it. Then where will we be?
So, the answer to every problem is to tax, tax, tax.
I am afraid most of you here who complain about taxes are little more than "sunshine patriots." I am ashamed so few Alaskans, who pay the lowest taxes in America, are so illinformed with so little sense of civic duty. We are at war for goodness sake! Stop whining and do your part. It's time to grow up.
Our 'civic' duty is to work harder at finding ways to reduce the size and scope of Government and to reduce taxes in everyway possible...
Unless something is found to STOP the growth of Government we will very soon have no Country left...it is totally out of control.
Of course we don't want any new taxes but I wonder how we could really control the price of fuel. If you consider that oil is about $60 per bsarrel right now and the price of gas is 2.92 per gallon..all things taken into consideration the price should be about 2.50 per gal. of course the refineries are selling jet fuel at near cost so we are supporting the airline industrty right now..it does cycle but the bottom line is that the consumer is the one that the oil companies maintain their obscene profit margins from every quarter. ps to all you diesel burners out there..you want to save a buck a gallon go buy one of those electric pumps ($125.00)and siphon your diesel from your home heating fuel tank. Better lubrication better product better price. Dont forget this world crisis was not brought about by Wall Street..it was brought on by Big Oil. The only answer of course is to get smarter; use less and less of their product until we have them needing us instead of the opposite. I think we are all trying in our own way and it has had some effect..Tougher on us up here..
considerthesource,
"I am ashamed so few Alaskans, who pay the lowest taxes in America, are so illinformed with so little sense of civic duty".
No need to feel ashamed, you are totaly wrong about Alaskan's paying the lowest taxes.
State and local tax burden, FY 2005-2006
Rank, taxes per capita State State and Local
Taxes per capita Rank, taxes per $1,000 personal income Taxes per $1000 personal income
1 NEW YORK $ 6,405 1 $ 151
2 Wyoming $ 6,090 2 $ 150
3 Connecticut $ 5,670 15 $ 114
4 Alaska $ 5,469 3 $ 147
5 New Jersey $ 5,422 10 $ 117
6 Hawaii $ 4,823 5 $ 133
7 Massachusetts $ 4,759 35 $ 104
8 Maryland $ 4,592 32 $ 104
9 California $ 4,491 13 $ 115
10 Vermont $ 4,413 6 $ 129
http://www.ppinys.org/reports/jtf/taxbur...
To that you can also add in the fact that given our relatively high income we tend to pay higher federal taxes.
I agree with anotherAlaskan. We're in a catch-22 here. When Alaska repealed the gas tax, there was no noticable effect on the price of gas. But you can take it to the bank that the very second Alaska reinstates the gas tax, gas in Alaska will jump up 8 cents (at least.) The oil companies have been banking that 8 cents for the last year, and you can be damn sure they aren't going to give it up.
Who knew the Chamber of Commerce was full of a bunch of socialist commie libs!!
ConsiderTheSource-
I am not complaining about military spending and national defense.. That's mandated by Art1Sec8 of the US Constitution.
I do object to paying for Planned Parenthood, the US Dept of Education, the National Endowment for the Arts, ILLEGAL immigrants, 3rd generation welfare moms, ACORN, lucrative lifelong pensions and health care for Congressional members, date night on Broadway for the Obamas, Barney Frank's lovers, Chris Dodd's mortgages, contracts obtained through kickbacks, government studies on cow flatulence or pickup lines in gay bars (both happened), public radio and TV, subsidizing corporate farms for not growing food, and government waste in general.
It has nothing at all to do with growing up, civic duty, or doing my part.
I have't heard Obama in this and the bailouts, and all the other wonderful things he has done so far. WHy is that, liberal Democrats? He has mortgaged our future, and that of our kids and grandchildren to bailout the auto industries, and Banks, which is rediculous anyways. Now he is talking about re-doing the medical insurance industry.
Where exactly do you think the money is going to come from? Print more? Hyper-inflation? Let's open our pocketbooks now, because taxation is the preferred method of getting that money back.
As far as the gas taxes and high gas prices. You have got to be kidding if you don't think that this is not a fixed thing and Jay Ramos is not involved, along with the other cronies. The last "special investigation" led to nothing but more green, rather the black of oil, coming out of Jay's pocket. $2.92/gallon, at $62/barrel, and that is still without the 8 cent tax. Until someone in that big house in Juneau has enough bullocks to truely do something, and run an investigation void of greedy oil covered hands, nothing will be done. Until then, thanks for all the billions and trillions it took to bail out the banks and car companies! Thanks also for the lovely vacations that we are paying for for the executives of these companies.
This guy is kinda far out but maybe not to far nowdays..I have never heard of him but he is saying what a lot of folks are thinking nowdays..
http://www.resistnet.com/group/mississip...
charliebussell-
After watching that YouTube, I'm speechless. But, thanks for the link.
Wow, thate some link. At first I thought Rev. Manning was being sarcastic, but after a minute it becomes apparent that he is speaking from the heart. Maybe he could be the first real black president.
TBD, says it all for me too!
"I do object to paying for Planned Parenthood, the US Dept of Education, the National Endowment for the Arts, ILLEGAL immigrants, 3rd generation welfare moms, ACORN, lucrative lifelong pensions and health care for Congressional members, date night on Broadway for the Obamas, Barney Frank's lovers, Chris Dodd's mortgages, contracts obtained through kickbacks, government studies on cow flatulence or pickup lines in gay bars (both happened), public radio and TV, subsidizing corporate farms for not growing food, and government waste in general.
It has nothing at all to do with growing up, civic duty, or doing my part."
Arrr Raise the Rate to $4.99 per gallon! Force everyone to ride bicycles! Reduce those Carbon Emissions! Do it like they do in Europe!
0------0
I think the problem here is that the nations roads are tied to the gas tax, and we have crumbling infrastructure across the board. Wasn't this supposed to be a part of the new stimulus plan? A revamp of the Interstate system?
We need a modernized energy grid based on sectors and the transfer of power, instead of a hub system vulnerable to waste and attack.
We need high-speed commuter services in the lover 48, as well as a traditional rail connection thru Canada.
We need an updated standardized national water system instead of relying on municipal and state regulations.
And we need to stop going to war. Romans used their armies to build civilian projects in times of peace... why can't we do the same to some extent?
WHAT?! Wasn't this where the stimulus money was supposed to go??? You know, all those "shovel ready" projects to fix our roads.
Maybe the U.S. Chamber of Commerce can pay for the gas tax. When you increase taxes you also increase the price of goods that is all we need during these bad times. What are they thinking maybe they are not thinking.
I know the gas tax in the US is one of the lowest amongst western countries. I know watching it hit $4 helped push change in our society and economy. I also know cities in North America are not laid out in a walker/biker friendly manner.
Without a war in some far-off country, we wouldn't be having this commentary. I don't know if it's the testosterone or just male ego that demands we stick our noses in other's business to the point of "donating" thousands of our young people to the slauter and billions of dollars to the cause. I'm sure there is a solution that doesn't involve such actions. War mongers have been around since time began to ensure lucrative contracts to build weapons and deliver goods/services. Maybe we should start there.
Isanova,
If we stop driving so many cars there will be lots of room for alternative lanes. We've paved plenty all ready and just will need to rearrange the lines.
I'm still wondering what Crazy Rev. Manning has to do with the article we're commenting on but I guess the DNM gives free rein to religious nuts to just jump in anywhere.
Increased taxes for gas are a very bad idea. With new drilling shut down, there is nothing contributing to the base of the economy.
We still have to pay for the so called stimulus through taxes, the health care entitlement program and the vast Obama deficits.
Government has a history of spending transportation taxes, such as a fuel tax, on other projects, a good example is the bridge that collapsed in Minnesota not too long ago.
What we need now is to create jobs through the private market, vote out all tax and spend politicians of whatever party, and say no to all new taxes and entitlement schemes, both in Alaska and federal.
Lets just privatize the nation noainc, then there can be bidding wars and turf wars between the corporations for control of the populace.
I'd at least like to see alternatives to owning a car in this nation. Even trying to get by on foot/bus/bike makes it very hard to do anything in this country. Our cities were laid out with automobiles in mind, and monorails, developed bike paths and public transport are critically ignored most everywhere.
Once unemployment hits 100% we won't need to drive anywhere. With real unemployment over 16% we are on our way.
Fairbanksgas: Yep, with the official unemployment at 9.5% at the end of June 2009 (plus those that no longer are looking for work and reduced hours) .. it is scary or should be for everyone.
US Bureau of Labor Statistics http://www.bls.gov/
smap99712,
So little civic duty?
Ah, a socialist.
You cited all the failures and the cost the people of those states. Good job.
Why does Alaska have to follow down that failed path to socialist utopia?
Who pays the bill?
Right now, the property owner for the cities and borooughs, and those who buy anything in the cities, if they have a sales tax.
I think we need less taxation, not more.
You think we need more, then go live in one the utopias whose rape of the taxpayer you cited.
Idwalaska-
smap99712 was countering the comment by ConsiderTheSource. The figures shown by smap99712 show that Alaskans ARE highly taxed, contrary to the myth that it's a free ride up here.
Fairly soon, taxes will be 60% of your income! With a USA government the size of the TEXAS, with benefits, medical, retirement, etc - we'll be paying to support the government for a long time.
Get out of IRAQ
Take care of USA
Enforce immigration violations
Trim government
I wouldn't mind paying the tax, IF the sellers of the gas weren't so greedy. There is absolutely no reason for us to be paying such high prices right now. My family has seriously decreased our usage, car-pooling whenever even remotely possible. Means a lot of sitting around for some of us at times, but, saving almost $200 monthly in gas is nice.
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