Gas tax-plank-Martin

: Rendell responds to gas prices with call for more taxes.
==Libertarian Party of Pennsylvania (LPPA) calls for tax break at the pumps==
Harrisburg, PA - 4/28/2006 – While Governor Ed Rendell has called on George Bush to establish a windfall oil-profits tax, the LPPA has offered a contrasting call for reduced gasoline taxes and increased restraint on government spending.
Tom Martin, LPPA U.S. Senate Candidate, highlighted the problems with a windfall tax. “In 1980, the federal government enacted the Crude Oil Windfall Tax. According to a detailed study by the CATO Institute, this tax reduced domestic oil production 3 to 6 percent while increasing our dependency on foreign oil imports by 8 to 16 percent. The tax was repealed in 1988 because it imposed significant administrative costs on both the government and private sector and generated no revenue after 1986.“
Martin continued “A windfall tax doesn’t help the consumer. The tax dis-incents the oil companies while filling the pockets of government bureaucrats. Which is better - to have windfall profits in the oil industry where at least there’s an incentive to find and distribute more oil and gasoline, or, to ship the money to Washington to build more bridges to nowhere?”
If Governor Rendell is serious about helping the consumer, the LPPA proposes that he work with the legislature to cut the Pennsylvania state tax on gasoline. While oil companies make 9 cents per gallon in profit, Pennsylvania takes 32.3 cents per gallon, the second highest gasoline tax in the country. Even at today’s prices, this amounts to significant savings to consumers each visit to the pump.
Chuck Moulton, chair of the LPP, indicated “consumers are tightening their belts to adjust to the increased costs of gasoline. Government can set a positive example. They can tighten their belts and reduce their spending to finance a reduction or even elimination of their massive gasoline tax.”
====Source====
Libertarian Party of Pennsylvania, 3915 Union Deposit Road #223, Harrisburg, PA 17109, 1-800-774-4487
: For more information contact: Doug Leard (Media Relations) or Chuck Moulton (Chair) at 1-800-R-RIGHTS
: The Libertarian Party is the third largest political party in the United States with over 600 officials serving in office throughout the nation. Please visit LP.org or LPPA.org for more information on the Libertarian Party.
==Links==
* Gas tax
Martin category:finance category:Martin, Tom