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econ paper 2 - Matt Idleman Econ 201 Fall Semester 2008...

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Matt Idleman Econ 201 Fall Semester 2008 Paper: Mineral-Daily News Tribune Date: September 26, 2008 Article Name: “Report: W.Va. tax freeze won’t save consumers money in the long run” A report released Thursday contends that the temporary freeze on an increase in one of West Virginia’s gasoline taxes won’t save consumers much money. The West Virginia Center on Budget and Policy argues that the Legislature’s decision to block a gas tax hike scheduled for January 1 is “at best a short term solution that does not guarantee West Virginians any real savings and leaves them vulnerable to high gas prices.” The group described similar freezes in Indiana and Illinois, where the bulk of savings from gas taxes went to gasoline vendors in the form of higher profits. The report also cites a U.S. Department of Energy report that federal and state gas taxes accounted for about 15 percent of the price of gasoline in 2007. The Legislature voted in its June special session to block an increase in the tax on the average wholesale price that would have raised it from about 11.7 cents per gallon to 16.7 cents. Overall, West Virginia’s gas taxes total 32.2 cents per gallon. “Our economy and our people are struggling with these high gas prices, and we wanted to avoid adding to that burden if we could,” Manchin spokeswoman Lara Ramsburg said Thursday. The center also warns that the freeze further weakens the State Road Fund, already ailing from reduced driving brought on by high gas prices at the pump.
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  • Spring '09
  • na
  • Taxation in the United States, West Virginia, high gas prices, high gas prices., Fuel taxes in the United States, Road Fund

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