The Daily Gazette - Schenectady, NY
Daily Gazette

Op-ed column: To help achieve lower gas prices, make your voice heard
Sunday, May 25, 2008

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In the late 1970s, we saw our economy mired in recession, gas prices at record highs, OPEC nations largely dictating fuel costs and politicians talking about energy independence.

In May of 2008, we have an economy mired in recession, gas prices at record highs, OPEC nations largely dictating fuel costs and politicians still talking about energy independence.

As the saying goes, “the more things change, the more they stay the same.” The eerie resemblance today’s run-up in gas prices has with what occurred nearly 30 years ago has proven that maxim. Oil was recently trading at $135 per barrel, with some energy commodity analysts predicting it could go even higher. If it does, $5 for a gallon of gas could be much closer than people think, or want.

Families hurting

Anyway you slice it, families are hurting. This is especially true here in New York state where, in addition to paying some of the highest gas prices — and gas taxes — in the Northeast, we also pay some of the highest property taxes and Thruway tolls. Taken together, these burdens add up to a crushing squeeze on middle-class families. For the purposes of this column, I would like to address the gas price-gas tax connection that is contributing to the squeeze so many families are feeling.

New York state imposes three separate taxes on a gallon of gasoline and diesel fuel. Those taxes are an eight-cent motor fuel tax, an eight-cent sales tax and a 16-cent Petroleum Business Tax. These taxes, along with local and federal taxes, contribute to the price of gasoline and diesel fuel. When compared to our neighbors, New York has the highest gas taxes — and gas prices – with the exception of Connecticut. All the other surrounding states — New Jersey, Massachusetts, Pennsylvania and Vermont have lower gas taxes and — surprise, surprise — lower gas prices than we do.

Why is it that states surrounding us in the Northeast — who have lower sales taxes than New York — can continue to sell the gas for less, but critics of the summertime gas tax holiday would make us believe if we reduce our taxes, we still won’t save a cent? Have petroleum companies picked only New York state to gouge? Or, could our high gas taxes and prices be just one more symptom of New York’s internal tax-and-spend policies?

Clearly, there is a direct connection between the gas taxes New York state imposes and the gas prices motorists pay. We are not talking about sightings of Elvis or Bigfoot. The phenomenon I speak of — the link between high gas taxes and high gas prices — is very real.

Of course, identifying the problem is only half the battle. The other part, the hard part, is figuring out how to solve it. That is exactly what our Assembly Republican Conference has done in introducing a two-pronged plan to deliver short-term and long-term relief from excessive fuel prices.

Tax holiday needed

First, the short-term: our conference wants to provide motorists with a “summertime holiday” from gas taxes. The legislation we introduced — Assembly Bill A.10818 — would suspend the three state taxes on a gallon of gasoline and diesel fuel from Memorial Day to Labor Day. Our bill would, on average, save motorists roughly 33 cents per gallon of gasoline and 31 cents per gallon of diesel fuel. Think about the amount of driving you and your family will do between now and September and you’ll see how quickly the savings add up.

Addressing fuel-price spikes also requires a holistic, long-term approach. Once again, our conference took the lead by introducing Assembly Bill A.5798, legislation that would enact an “Alternative Fuel Incentive Fund” to bring more renewable and alternative energies to consumers. Specifically, our bill would support things like the development of cellulosic ethanol — the good kind of ethanol — and provide greater financial incentives for people to make their next car purchase a flex-fuel or hybrid vehicle.

Our proposals have received strong support, from both business and environmental groups, never an easy feat. However, there is a catch. A big one. The speaker of the Assembly.

The speaker has blocked both of our initiatives — Assembly Bills A.10818 and A.5798 — from coming to the floor and receiving an up-or-down vote. This is part and parcel of the dictatorial, not democratic, manner in which the Assembly is run.

Our conference will keep speaking out on the need to provide both short-term and long-term relief to motorists and continue trying to make real change happen. You can support our efforts by going to www.tediscostake.com and adding your name to the thousands who have already joined our online petition to make the summertime gas tax holiday a reality.

The speaker is betting you won’t make your voice heard on the need for lower gas prices. He thinks you’ll forget, or get distracted, as the days and weeks go by. Together, we can show him he’s wrong and that some things, even in New York, can change.

Jim Tedisco is the Assembly Republican Leader and represents parts of Schenectady and Saratoga counties in the 110th District.



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comments


May 25, 2008
4:12 a.m.

[ Suggest removal ]
Inyo ( no real name given ) says...

The gas tax holiday is a bad idea. Americans need to be weaning themselves off oil, not getting incentives for us to use more. Oil is a limited natural resource, and burning it emits greenhouse gasses. Rather than lowering the relatively small percentage gasoline is taxed, we should be encouraging the development of more fuel efficient automobiles (especially electric) and encouraging renewable energy sources such as wind and solar.

May 25, 2008
4:49 a.m.

[ Suggest removal ]
treetracker ( no real name given ) says...

Typical Republican solution - put a bandaid on the problem and hope it will go away or that no one will remember it when it does not go away. Time's up buddy. This is not going to get better until we get off the oil. If you want some solutions, how about some frienly legislation for the air car designed in France that's supposed to go on the market here in 2010? Could we speed that up some...help them put more cars on the market than 10,000 annually? Maybe get a tax break for those who purchase the cars? Maybe kick your NY Senators in the butt and demand higher CAFE standards than the lame one that just passed. How about just getting along with each other and finding REAL solutions to the problems for everyone, not just your campaign funders? I hope you all lose your next election because you have all failed the American public badly.

May 25, 2008
4:59 a.m.

[ Suggest removal ]
owensrf ( no real name given ) says...

I agree with Inyo. Another part of energy conservation and more sensible use of limited resources will involve reversing the decades-old trend of working 40 miles to 200 miles away from home, and making long daily commutes one person to a vehicle. I don't see how that pattern can continue.

For may years, due in part to cheap energy and the export of good paying jobs, local rural economies have been destroyed. We need to value people and enterprises that take the risk of blooming where they're planted. Try to do more business locally, buy locally grown foods, choose locally manufactured goods and services, etc.

May 25, 2008
12:01 p.m.

[ Suggest removal ]
davidgiacalone ( no real name given ) says...

There is no reason to believe that prices would come down the entire amount of the tax break (but, of course, state revenues would be greatly reduced and have to be recouped with other taxes, while oil companies reap big benefits and consumers small ones). Comparisons with gas prices in neighboring states that have lower gas taxes would only be valid if the tax break were permanent; the question is how oil companies and station owners would react to a brief tax holiday -- especially in the face of any increased demand caused by the tax break.

Note, however, that (according to today's information at Gas Price Watch and AAA's Fuel Gauge Report) Massachusetts has a gas tax 8 cents lower than NY's, by prices only 2 cents lower; and Connecticut has a gas tax 7 cents lower, but prices 5 cents per gallon higher than New York.

I would be less suspicious of your motives, Mr. Tedisco, if you were taking a position that took some political courage and asked the public to make sacrifices. For example, there will be 2.5 million cars on the NYS Thruway this holiday weekend. If you had urged all drivers to drive the speed limit -- and had used your position to insist that the speed limits be enforced on all our highways -- millions of drivers would be using 10 to 30% less gasoline when driving this weekend.

See my weblog post calling for enforcement of our speed laws in order to reduce gasoline consumption and prices:

http://blogs.law.harvard.edu/ethicalesq/...

May 25, 2008
1:42 p.m.

[ Suggest removal ]
Billybob ( no real name given ) says...

The problem is one of consumption vs. production. You can lower the tax on gasoline, but in a couple of days the price will rise again offsetting any savings you may get. No this is much bigger, and will last for a long time. Using less gas is good, but as our economy grows so does our oil consumption, as China and India's economy grows so does their oil consumption.

http://www.lifeaftertheoilcrash.net/

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