Wow, have you seen the price of gasoline does it bother you? If so, consider this, the Governor says it should be higher! Yes, it’s true Governor Dannel Malloy wants to raise the price of gasoline even higher. Ouch!!
Our esteemed Governor is proposing an increase in gas taxes to support State spending but do we really need to do that? Currently Connecticut collects .25 per gallon on gasoline sold every time you go to the pump. The Governor says, that is not enough he was to raise it to .28 per gallon, that’s a 12% raise. Do we really need to do that? Let’s look around and see how other states seem to manage.
Massachusetts, yes the State residents of Connecticut used to call taxachusets also has a per gallon tax but it is only .21, how can that be? We better look at New York because it has long been said New York is the land of big spenders. Yes, New York has a gas tax of .2435 per gallon. Ok maybe not a fair comparison there because New York has so many taxes. Let us take a look at New Hampshire, they don’t have an income tax and they must have to pay bills and run government so they have to be high. Nope, sorry New Hampshire only has a per gallon gasoline tax of .18. Ah, Dan, oh Governor, we have a problem, our gasoline is already too high, can’t we consider lowering spending instead of raising taxes? But wait there’s more!
Oh my goodness there’s more? Connecticut also has another gasoline tax that we didn’t count yet. Yes, the gross receipts tax which is a 5% tax on the first sale of each gallon sold in the State. Since it is a percentage based tax as the price per gallon goes up so does the cash flow to the State and so does the price to the consumer. Here’s how that works, when gas was $1.00 per gallon the state got .05 and the dealers paid 1.05 which they marked up and sold to you. Now at $3.00 the dealer is paying 3.15 and the State is getting .15 per gallon on top of the .25 per gallon that you pay at the pump and yes your price goes up.
Do we really need to continue our climb up the spending spiral of government? Do we really need more ways to spend tax dollars or could it be that we have overspent and created a money monster gobbling tax dollars at an ever increasing rate? It seems we are in a hole and digging deeper.
Did you vote for Governor Malloy? Is this what you wanted when you cast your vote? Will increased cost of gasoline stifle our economy and lead to increased cost for other goods and service? Will Connecticut be better off? Do we really need this?