Friday, February 17, 2012

Pain at the Pump: Cap the Gas Tax Rally Middletown

Did you know that there is a 53 cent tax on every gallon you pump? CT now has the highest tax in the country! There are state representatives who would like the high gas tax to remain uncapped. To the  Middletown Insider, the phrase "Thank you Sir, may I have another?" comes to mind. If you are hurting at the pumps please come out to the rally and show your support and also sign the online petition.  Yeah, yeah we know gas is nearly $7 a gallon in Europe, but they also have a stellar public transit system, and this is not Europe. There can be environmental concerns and lessening of the dependence of fossil fuels and still keep costs down- find out how! 

Please attend to show support for Sen. Suzio and your wallet.

The facts as posted on capping the gas tax from Sen. Suzio's website:

"Q: Would capping the Petroleum Gross Receipts Tax (PGRT) reduce budgeted revenues?
A: No, the proposed cap is based on the total revenue that the FY 2013 budget assumes from the PGRT (for both the General Fund and the Special Transportation Fund).
Connecticut has been reaping a windfall of PGRT collections in recent years. During the last 30 months the state has collected more than $100 million of extra Gross Receipts taxes because higher gas prices effectively have triggered higher Gross Receipts taxes per gallon of gas. At its peak last year, the State was collecting approximately $0.25 per gallon compared to the budgeted $0.15 per gallon, or an extra $0.10 per gallon. If gas prices rise to $4.50 per gallon as some are projecting, the State would be collecting about $0.55 per gallon in PGRT and gas taxes!
Q: Would oil companies pass on the tax savings to consumers?
A: Gas taxes in Massachusetts and Rhode Island are lower by about $0.25 and $0.19 per gallon. Gas prices in those states are almost exactly lower than Connecticut by that amount. In other words, actual experience demonstrates that the tax reduction will be passed on to consumers.
Q: Does Connecticut need the extra Petroleum Gross Receipts Tax collections because we don’t have tolls?
A: Connecticut does not have tolls on its inter-state highways because it receives multi-million dollar subsidies from the federal government. These subsidies are in lieu of tolls. In fact, if Connecticut were to restore tolls it would have to forfeit the federal subsidies. So Connecticut does not need the PGRT to make up for lost toll revenue and, in fact, that is not even a viable option.
Q: Will repairs and maintenance of Connecticut’s bridges and roads be deferred by capping the PGRT?
A: Absolutely not. The extra monies that the state receives when gasoline prices increase is directly deposited into the state’s General Fund for general annual expenditures. Not a penny of the extra PGRT collections has been used for their intended transportation related purpose."

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