Big Government has once again proven that it really believes that tax dollars belong to them and not the taxpayers they “appropriate” the funds from.
The New York State Assembly is reticent to take up a measure to cut the Empire State’s gas tax by 32 cents per gallon from Memorial Day weekend to Labor Day.
The State’s Senate, led by Republicans, adopted the gas tax holiday 46-15 with bipartisan support.
The State’s Governor, David Paterson, and Assembly Speaker Sheldon Silver, both Democrats, are also opposed to the tax holiday on the grounds that the government would lose $500 million in funds.
Republicans, on the other hand, note that if all gas taxes at all levels of government were suspended for that period of time, it would save New York motorists 65 cents per gallon. If a car took 20 gallons to fill up, the driver would therefore save $13 per fill-up.
That would mean hundreds of millions of savings for drivers throughout the State, a big boost for the State’s economy over the summer months, as those dollars could then be directed to purchases of other goods and services.
Left out of the Democrats’ calculation – as usual – is how a boost to the economy positively impacts upon general revenues. It is a simple fact that reducing the tax burden on individuals bolsters economic activity, and that bolsters profits and purchasing power, which means that revenues increase. Their $500 million projected “loss” in revenue is therefore meaningless, and should be disregarded by New Yorkers.
It’s a simple fact: If a business, to remain competitive, reduces the price of the good or service it is selling, it will boost sales, move more inventory, and may even have to expand in order to keep up with orders. That means more profits and thus growth.
Another line commonly used is the myth that somehow the savings do not get passed on to the consumers:
“Opponents to the state measure — which comes in an election year when the cost of gas is a top complaint for voters — say they don’t trust the oil industry not to jack up prices to eliminate any consumer savings.”
And it is a myth. So replies Senator Andrew Lanza of Staten Island, a Republican:
“Look at New Jersey, where you’ll find a lower tax for gasoline, and you know what you’ll find? A lower price for gasoline… Gas costs more here, because we impose a higher tax here. If we impose a lower tax here gas will cost less here. What is so hard about that to understand?”
Indeed. As of this writing, the average price of gasoline in NY was $3.823/gallon. And in New Jersey it was $3.517. A difference of 30.6 cents. And the gas taxes in each State are $.412/gallon and $.145/gallon, respectively. A difference of 26.7 cents. If these kooks were right, wouldn’t the difference in price between the two States be less than the difference in taxes, and not greater? In other words, based upon empirical data, where is the evidence of price-gouging?
Left with no other argument, the Left uses conspiracy theories to justify more government taxation.
Therefore, the only evidence ALG News notes is that of tax-gouging.
ALG Prediction: Relying on conspiracy theories and armed with no understanding whatsoever of basic economics, the New York State Assembly will ignore the State Senate’s reasonable call for a gas tax holiday over this coming summer.
