Easy Way to Lower Gas Prices!

[Packo]

Why don't the states and the federal government join together and drop the amount of state and federal taxes on gasoline for a period of like 6 months or until the prices stablilize? My reason it won't happen.......it would be too easy and governments don't like to lose revenue. They are going to lose it anyway because people are going to be conserving more then they have ever done meaning less gas sold, less taxes collected. Governments love raising our taxes but Lord knows in times of unprecidented catastropy they can't even lower them a bit to help us out. This is unexceptable and sickening to me.

Pack

[David]

Here is an interesting article confirming your post Paco.



Acute Pain at the Pump Stalls Gas Tax Revenue

By Steven Ginsberg
Washington Post Staff Writer
Saturday, August 27, 2005; Page A01

Record-high gas prices are reducing the amount of money available for Washington area transportation projects as leaders scramble to find ways to relieve the region's mounting traffic problems.

Highway projects are paid for primarily through a tax on every gallon of gas pumped. So as high prices compel some people to leave their SUVs and other vehicles in their garages and look for ways to cut back on the gas they use, less tax money is collected.

State officials said that effect is starting to be felt. In June and July, when prices started jumping and drivers started changing habits, total gas tax receipts dropped by nearly $1 million in Virginia compared with the same months last year.

The same was true in the District, where gas tax revenue dropped sharply in June, to a level nearly $1 million less than last year. June also was disappointing in Maryland, where taxes came in $1 million less than projected. Numbers for July from the District and Maryland were not yet available.

Maryland Transportation Secretary Robert L. Flanagan said he had no doubt the dip was brought on by high prices.

"There's no question that rising gasoline prices and flat revenues are a challenge," Flanagan said. "Maryland's economy is booming, and as a result, we expect to see more driving, not less driving. This does raise questions about our ability to rely on the gasoline tax."

Rising gas prices are the latest reminder to officials that the gas tax is no longer sufficient to finance transportation programs. "The gas tax is becoming almost inadequate as a principal source of highway funding," said Martin Wachs, a professor at the Institute of Transportation Studies at the University of California at Berkeley. Governments have "failed to increase the gas tax anywhere near what they need to maintain its spending power." Wachs noted that some localities are picking up the slack; 23 California counties have voted for sales taxes for transportation.

Gas and oil costs hurt transportation budgets in other ways, too. States must pay for fuel for their massive vehicle fleets, while construction prices have spiked because of contractors' transportation costs and because oil is a primary component of asphalt. Officials said the price of asphalt is up by nearly half, on top of already high prices for concrete, steel and other commodities.

As transportation departments "have to pay more to power their fleets and fill in tax revenues they're not getting, they're going to get caught in a terrible squeeze," said Lon Anderson, director of public and government affairs at AAA Mid-Atlantic. "Which either means taxes are going to have to be significantly increased, or they're going to cut back on projects.

"Given the reluctance to increase taxes, most likely they're going to get caught in a big squeeze and they're going to have to cut back."

This summer's high gas prices have accelerated efforts by transportation officials and lawmakers locally and across the nation to look for alternative ways to finance much-needed fixes.

Instead of relying on gas taxes to pay for infrastructure, leaders are increasingly talking about imposing tolls and partnering with private companies to build, maintain -- and profit from -- transportation projects.

"I think the fundamental problem is that the gas tax is just becoming less and less reliable," said Virginia House Speaker William J. Howell (R-Stafford), who has called for more private investment in road and rail projects. "Why continue to look at that as the primary way to fund transportation needs? We need to find another way."

Aside from public distaste for gas taxes, government support for them has eroded in recent years as they have failed to keep pace with growing needs. Even with the proliferation of gas-thirsty SUVs, overall fuel efficiency has improved. As a result, the tax hasn't kept up with population patterns or states' needs to build more and better roads.

Efforts to raise the tax have also stalled. Lawmakers in Virginia and Maryland debate increases almost annually, but proposals rarely make it out of committee.

Virginia last increased its tax, to 17.5 cents per gallon, in 1987, and the District and Maryland haven't raised their tax rates since 1992. Maryland charges 23.5 cents a gallon; the District's tax is 20 cents a gallon.

The federal government tacks on an 18.4-cent gas tax, which pays for much of its contribution to transportation projects. State officials said the amount they receive from the federal government could shrink if drivers look to conserve gas.

Anderson said research by AAA indicates that drivers will be doing just that. "I think there's every reason to believe that we'll continue to see prices going up at the pump, and I think we're certainly going to see more curtailment if the prices keep going up," he said.

A gallon of regular unleaded averaged $2.68 in the Washington region yesterday, compared with $2.34 a month ago and $1.88 a year ago.

In fiscal 2005, Virginia took in $890.6 million in gas taxes, and Maryland took in $752.7 million. The gas tax crunch is most dire in the District, where revenue has dropped sharply over the past five years. In fiscal 2000, the city took in $31.8 million in gas taxes, compared with $26.6 million in fiscal 2004. The city is on course for a similar amount through the first nine months of this fiscal year, officials said, although they added that gas tax revenue was holding steady only because of new service stations, allowing more people to fill up in the city.

"If trends continue in terms of gas tax receipts, we'll be broke in several years," said Dan Tangherlini, the District's director of transportation. "We'll be in a position where we have to lay off administrative staff or we wouldn't be able to match federal highway funds."

If that happens, the alternatives are to "do less projects or we go to the general fund with a tin cup," Tangherlini added.

[blues clues]

why not just put a cap on what they can charge say 2.00 a gal still too much but got to start somewhere.


razz

[Packo]

Thanks David.....I was just thinking about that today and through frustration started the thread.

Razz, well I hear what your saying but being this is a capitalist nation and the laws of supply and demand run economies, it won't happen or we would still be able to buy a new car for 3,000 bucks. Like I was saying, one of the easiest and quickest ways is just to quit taxing us so much on a dang gallon of gas. I'm not sure what we pay here in SC but just by looking at the article in the Washington Post that David put up, you gotta figger' like 19 cents a gallon from the Feds and another 20 or so from the states, and your talking 40 cents a gallon right there. What are you paying up there? In Beaufort we just went to 3.25 a gallon for regular today. God help us.

Pack

[Arrow]

This Week In Petroleum

Special Report

USA TODAY.COM

[Arrow]

Peak Oil

[blues clues]

pack I.m a good capitalist I'll be the frist to say it,s good to make a profit but when it comes to user it's time to put a stop to it but if we or anyone else thinks this government is going to do anything to the big OIL com. pigs will be fling Sunday so lookout for fling HAM.


razz

[Packo]

Razz,

No administration, Republican or Democrat has ever done anything to curb oil prices.....NONE OF THEM. I also wish that something could be done but it never has and never will. Again, the greedy politicians of BOTH SIDE will never reduce taxes on gasoline and maybe, just maybe it's time that we started drilling and building more refineries that the environmentalist have been blocking so we won't be completely dependend on foreign oil. Seems the green weenies didn't learn a thing from the oil embargo's of the 70's. Hate to say it my friend, but if you've been reading the papers here in SC the Democrats in our state congress have been asking for an INCREASE in gas taxes in SC, and tobacco, to make us "use less". I know we're being gouged by the Arabs, (OPEC, WHICH INCLUDES SOUTH AMERICAN COUNTRIES), AND OUR OWN COMPANIES, but as I've said before, no administration is going to do anything about it. When Clinton was in he dipped into the Stratigic Oil Reserve to "lower prices" but did not cap the Oil Company profits. It didn't reduce prices. He also did nothing with OPEC, same same George Bush, which pisses me off also. They ALL stink to high heaven.

You forgot my other question, what are you paying for fuel as of today??? (Razz, ain't arguing with you....just believe both sides screw us, not just this administration.)

Pack

[1CAVCCO15MED]

I told my son jokingly that the thing we need to do is get in touch with our local petroleum lobbyist so he could tell his employees (Congress and the President) to act. It ain't really so funny. Blonde joke: I never have a problem with rising gas prices, I just put $20 when I go to the gas station.

[blues clues]

Pack like you both sides of are taking money from the big oil guy's. what worrys me is the whole countrys economy has been on it's knees for a few years I'm not sure that if the econmoy can last. All I say is get the big money out of our government and maybe things will start looking better and yes I still believ3e in the TOOTH FAIRY .


razz