Sunday, February 17, 2008

"Allow me to add my two cents".... per gallon....

.
Allow me to throw in my “two cents” regarding the Virginia State Senate’s vote to “raise our gasoline tax by a penny per gallon in each of the next five years”.


The Daily News Record provides this information about the vote and comments from some of the Senators.


“According to an analysis of the bill performed by the legislative staff, the proposal would increase the state gas tax from 17.5 cents per gallon to 22.5 cents per gallon, an increase of 28.6 percent, and raise an estimated $1 billion over five years“.


That is one hefty increase in the tax burden being imposed on the citizens of Virginia over the next five years. After listening to the never ending finger pointing to the “Evil Oil Companies” by Hillary & friends blaming them for high fuel costs, many are quick to blame the oil companies.


As noted in this earlier RightsideVA post, "From 1977 to 2004, according to Tax Foundation data, U.S. oil companies cleared $630 billion after taxes while paying $518 billion in federal and state corporate taxes at an average rate of 45%“.


45% tax rate to the U.S. oil companies. Now that’s a little stiff in itself and the fact that Hillary & friends fail to mention is that the incorporated 45% tax on the oil companies is passed onto consumers like you and me…


Wait. That’s not all. “ Over the same period, an additional $1.34 trillion in excise fuel taxes was collected from consumers by the oil companies and turned over to various governments“.


Republican State Senator Obenshain pointed out the likely ugly future of this additional tax increase. “The revenues realized from the tax increase, Obenshain said, are unlikely to go for transportation needs. Instead, he said, the revenues would likely go to support new pet spending projects“.


And its not just the local government looking to take some more out of your pocket for their use. “The proposal to increase the state gasoline tax, Obenshain noted, comes after the National Surface Transportation Policy and Revenue Study Commission proposed Congress triple the federal gasoline tax from 18.4 cents per gallon to nearly 60 cents per gallon over five years“.

It is obvious that our infrastructure needs work and that is fine and should be done. The American taxpayer already pays a hefty amount to finance these projects and maintain our roads. The problem is pointed out by Senator Obenshain in his remarks about the probably end result of our additional tax money once making it to Richmond. We need to support strong Conservative Republicans like Senator Obenshain in their efforts to ensure proper use of our tax money instead of it being used for "Pet Projects"...

4 comments:

J. Tyler Ballance said...

I am way to the right of Senator Mark Obenshain on many issues, but he couldn't be more wrong on his opposition to this gas tax increase.

The Assembly can ensure that the funds generated are used for transportation, if they don't do so, then they are accountable to the citizens for such negligence.

As for your vitriolic proclamation about how this is going to be such a heavy burden, the fact is, I researched this issue last summer and discovered that even at the full five cent level, the impact to the typical driver, will be only $15 per year.

When one recognizes that the added gas tax will be paid by all users of the roads, including travelers from other states, that we will no longer need the added government layer in the form of RTAs, and that we won't be using our law enforcement as revenue agents to collect those stupid, "abuser fees" then the gas tax increase is a good decision that should have the enthusiastic support of all, especially the small government conservatives.

. said...

"The Assembly Can" but will they?

Just a few short years ago Democratic Governor Mark Warner was able to push through a "Couple penny" sales tax increase due to fear of losing Virginias bond rating and that resulted in additional $700 million. What happened to that money? It was just a few pennies more but totaled millions and they blew that money already...

"Vitriolic proclamation" about a heavy burden is why I used the graphic of just two pennies. Read into the post and you will find that the driver and taxpayer is already paying hefty taxes that are passed on from the oil companies who are getting hammered with a 45% tax rate. CORPORATIONS DO NOT PAY TAXES. The cost is passed onto the consumer in higher retail prices. On top of that $1.34 Trillion collected and turned over to the government in form of exise taxes...

And it looks not to be stopping there. Senator Obenshain said: “The proposal to increase the state gasoline tax, Obenshain noted, comes after the National Surface Transportation Policy and Revenue Study Commission proposed Congress triple the federal gasoline tax from 18.4 cents per gallon to nearly 60 cents per gallon over five years“.

From 18.4 cents to 60 cents. That will be a considerable amount more then a couple of pennies a gallon. It is good to see Sen Obenshain fighting the battle now against this additional tax. I am sorry to see that Republican Senator Hanger does not feel the same way and voted again to raise our taxes, even just a couple of pennies instead of fighting to control the wasteful spending where this money will go...

Abuser fees was a good and needed program just implemented wrong. We need our Troopers out there stopping drunk drivers, reckless drivers, and habitual "Abusive" drivers. They need to be hammered with high fees to change their actions before they end up running you or me into a ditch or head-on collision. The problem was they went after minor infractions. What is wrong with high fees for habitual offenders and dangerous drivers?

Spank That Donkey said...

OK J. Tyler:
You brought it up, exactly which issues are you way to the right of Sen. Obenshain on?

Excellent post RSVA, and the most important thing is that the Senate refused a Transportation 'Lock Box', this gas tax increase is only to fund Kaine's Pre K program.

and remember folks, you pay 2% tax on your auto insurance premiums (undisclosed on your statements), and only 1/3rd goes to transportation....

This is the exact same thing!

. said...

Spank,

Reminds me of the Gore "Lock Box" that they had NO intentions of developing or using. It was just a campaign ploy. I have no problem paying more to go towards our roads but they will not ensure that those funds will not be diverted.

Unfortunately the money ends up in pet projects like the Democratic Governors who really wants the Pre-K money. We need our Republican Senators and Delegates out there pushing the issue and preventing yet another penny tax that results in millions out of our pockets only to be diverted to pet projects....