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Home Front: Economy
Georgia to suspend gas tax
2005-09-03
Georgia Gov. Sonny Perdue said he will sign an executive order Friday that will exempt consumers from state motor fuel taxes through the end of September to "relieve some of the financial burden" in the wake of Hurricane Katrina. The order will remove the 7.5-cents-a-gallon tax and a 4 percent sales tax on gas, the governor said, and was set to begin at midnight.
This makes far more sense that any kind of price controls (aka "anti-gouging" laws). It will be interesting to see how many leftists are horrified by this. There is no crisis so severe to justify reducing or eliminating any tax.

On Monday, I filled up with 89 octane for $2.619. This afternoon, it was $2.989.
Posted by:Jackal

#7  Can I increase my consulting rates when there is a hurricane or sunami or crop freeze somewhere in the world?

If there is a panicky demand for your services I would suggest you increase your rates.
Posted by: Mona Gorilla   2005-09-03 10:06  

#6  Also remember that the EPA relaxed the boutique brand requirements only for the southeastern states. If Phoenix has a shortage and LA has a surplus, it's still a crime to use the gas formulated for one city in the other.
Posted by: Jackal   2005-09-03 10:00  

#5  The gas shortage is real. Prices will increase until demand falls to match supply. If taxes are cut, either supplies will run out or prices will rise elsewhere. Same thing as for price caps. All they'll do is distribute the limited supply to those more willing or able to wait in lines from those more willing to spend more money. Pick your poison. The advantage of the capitalist option is that it encourages the development of other sources of supply.
Posted by: Glenmore   2005-09-03 09:48  

#4  Gouging is one thing, but remember that gas taxes double the price of gas. If President Bush, for example, just suspended that federal gas tax for the affected US South, the only issue would be availability. People there would probably be paying $1.50/gal. The oil companies would be making exactly the same amount of money, or maybe even a little more, than from the rest of the country, so they would be inclined to send *more* gasoline to the tax-free area.

Of course, if he did so, it would probably destroy the concept of a gasoline tax forever. People would really see how much of a scam and rip-off it is, and neither political party wants that to happen.
Posted by: Anonymoose   2005-09-03 09:05  

#3  Can I increase my consulting rates when there is a hurricane or sunami or crop freeze somewhere in the world? This may have some merit. Must put it on my to-do list. Reminder to myself, "Increase rates next time anything happens in the world." Justify it as flea market forces at work. Are the gas price gougers much different than the looters in New Orleans?
Posted by: John Q. Citizen   2005-09-03 08:44  

#2  And how much do you want to bet that within 48hrs or the tax suspension the price of gas jumps 6 cents?
Awhile back Az had a major gasaline pipeline break(Phoenix).As a consquence the price of gas jumped about .65/gal.Everybody from the Govenor to the gas companys kept saying as soon as the line is repaired and back in operation the price/gallon would fall.
Well they certainlly did not lie,the price dropped .20/gall.
Posted by: raptor   2005-09-03 08:35  

#1  The UK is paying 5 or 6 bucks a gallon (via conversion). We've been pretty lucky here with subsidies so far, I wonder how high it will get.
Posted by: Jan   2005-09-03 03:56  

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