Business news is already talking $2 a gallon (and less) for regular gas in the foreseeable future. Although consumers are feeling more cheery this holiday season with that added cash in their pockets, some State governments may not be so happy.
For every gallon of gas, the US federal government gets 18.4 cents per gallon, add to that state and local taxes, and on average you pay 49.5 cents a gallon or about $25 for a 50 gallon fill-up1. With lower gas prices you will be more willing to fill your tank and by extension, increase your state and federal governments’ tax revenues (Win-Win, Hooray).
For those five states (shown in the green) who have no deficits, or others like Indiana who have a high gas tax but low budget deficits, maybe you should consider joining in the holiday spirit and give some money back to your constituents. Lower gas taxes would increase the money multiplier and boost your local economies (Sing Jobs, jobs jobs, Cheers all around).
Poor California who has a fiscal deficit running nearly 30% and one of the highest gas taxes in the country, your will be unable or unwilling to lower your tax. In all likely-hood you will need increase your gas tax. (Bah Humbug).
Happy Holidays from the Garden Friend
1 numbers from API.org April 2013)
*Based on data gathered from these websites and sources:
Center on Budget and Policy Priorities, Nelson A. Rockefeller Institute of Government, SUNY