Tags: Group | Urges | State | Lawmakers | the | Gas | Tax

Group Urges State Lawmakers to Ax the Gas Tax

Wednesday, 07 September 2005 12:00 AM

"Hurricane Katrina has caused major supply disruptions and states must take all appropriate actions to lower fuel costs for families in need," said Georgia State Representative Earl Ehrhart, National Chairman of the American Legislative Exchange Council.

"The average state levies a 21.4 cent tax on each gallon of gasoline. Temporarily repealing these taxes will ease the impact of skyrocketing prices that will inevitably occur due to the break in the supply chain."

Even before the destruction and disruptions wrought by Hurricane Katrina, the average price of a gallon of gasoline had been increasing. Fuel prices have increased because of increased worldwide demand for oil, supply disruptions, and continued instability in the Middle East, but government can help lessen the impact of the hurricane by reducing fuel taxes and regulation during a natural disaster.

"Federal and state taxes on each gallon of gasoline average 39.8 cents per gallon," said Representative Ehrhart. "This is a common-sense approach that provides relief for American families seeking to rebuild their homes and communities after a disaster. I call upon the states to help reduce gas prices in the short term by cutting fuel taxes for the month of September. We hope that congress follows suit."

ALEC has drafted model legislation that provides tax relief at the pump. The model bill has been sent to the state legislators in the Gulf States for introduction during emergency or special sessions that may take place in the aftermath of Hurricane Katrina. Governors can use the language for executive orders. (Copies of the model legislation can be obtained by emailing Sharrison@alec.org.)

Regulation also takes a bite out of the consumer at the pumps. The Corporate Average Fuel Economy (CAFE) standards, restrictions on refining capacity, and boutique fuel also make families pay more for fuel. ALEC commends President Bush for easing emission restrictions at the end of the summer season to assist with transporting fuel to the affected areas.

"Whenever we tighten domestic regulatory requirements for fuel," said Sandy Liddy Bourne, ALEC's Director of Legislation and Policy, "we tighten energy markets and become hostage to foreign producers. This easing of the restrictions enables the states to be flexible in their response and provide real time assistance to those areas hit by the hurricane and downstream fuel markets."

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"Hurricane Katrina has caused major supply disruptions and states must take all appropriate actions to lower fuel costs for families in need," said Georgia State Representative Earl Ehrhart, National Chairman of the American Legislative Exchange Council. "The average...
Group,Urges,State,Lawmakers,the,Gas,Tax
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2005-00-07
Wednesday, 07 September 2005 12:00 AM
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