"A government big enough to give you everything you want, is big enough to take away everything you have"
Thomas Jefferson

Wednesday, April 30, 2008

Gas Cap

Even in the wake of high gas prices, several counties have dropped their cap on sales tax that was set at the $2 per gallon limit.

Onondaga County just to the south of Jefferson County earlier this month dropped their cap on sales tax, citing an analysis that consumers were not receiving a benefit from the reduction. Onondaga joins the growing list of counties, Rockland, Orange, Schenectady, and Albany dropping the cap. Onondaga County Executive Joanie Mahoney's intention is to use the additional $5 million in revenue provided by lifting the cap for property tax relief.

Initially 15 counties joined the state in capping the tax, the number has dwindled down to seven including Jefferson and neighboring Oswego County, although Oswego is currently considering dropping the cap.

The tax cap on gasoline is assumed to be a savings, it has yet to be proven that there is any effect in providing a price reduction at the pump for consumers, and proving that point could be difficult as several factors come into play in such a volatile market.

It would be well worth Jefferson County's time to review Onondaga's research on the subject. The intent was to save consumers money in the face of rising gas prices, the cap either provides that savings to consumers at the pump or collect the tax and do as Onondaga, reduce property taxes. The counties need to exercise caution; further pain at the pump should not be created in this current situation where hard working families are struggling to afford their transportation needs.


Anonymous said...

Senator Betty Little has posted details of her plan here: http://www.senatorlittle.com/45/news.aspx?nid=17812

Anonymous said...

Shouldn't the word "sighting" in the second paragraph actually be "citing"? Gee Scott or whoever wrote that paragraph, you probably need to hire a screener if you expect to be taken seriously.

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