[emersonbiggins]

One state senator's proposal in Oklahoma to suspend the gas tax for three months, to give working families a break...

Link to article

Are we going to make highway appropriations out of the general budget now? ROFL! I sure hope gas doesn't keep going up or we could see the fuel taxes eliminated forever!

Mind you, this rhetoric is coming from the state with the 49th or 50th worst roads & bridges in America...

$this->bbcode_second_pass_quote('', 'T')ypical family could save $4 at pump

By Luke Engan

CNHI News Service

OKLAHOMA CITY ? While Senate Pro Tem Mike Morgan was gassing up in Stillwater Thursday morning, another motorist recognized him and complained of high fuel prices, Morgan said.

Morgan, D-Stillwater, looked at the pump, which said the fuel cost $2.999 per gallon, and wished the 17-cent state fuel tax on gasoline weren't part of the total.

"I thought that 17 cents would sure be nice," Morgan said.

That morning, after driving to the state Capitol, he proposed suspending the tax until Christmas to help working families cope with rising fuel prices.

Sen. Jay Paul Gumm, D-Durant, said if the gas tax were suspended a typical family would save about $4 each time they fill their tank.

"They need it. They deserve relief," Gumm said. "Oklahoma families are facing a fiscal crisis."

Most of the tax revenue is used to build and repair bridges and roads.

"We just can't rob money from these important uses," Gumm said.

Morgan called on Gov. Brad Henry to dip into the state's Rainy Day Fund to replace the tax money for those uses. The proposal would draw about $115 million, or one-fourth of the fund's balance.

Henry would have to expand the special session to call for the gas tax issue. Morgan said he had not conversed with the governor or House Speaker Todd Hiett, R-Kellyville, on the issue.

Henry said the legal aspects of the gas tax proposal need review before he can extend the call. Only the governor can add the issue to the list to be addressed in special session. Lawmakers cannot pass other legislation until February, when regular session convenes.

"I have not had an opportunity to look at the details" of Morgan's plan, Henry said.

Hiett has said he opposes meeting in special session this year until an urgent need arises. He reacted warmly to Morgan's announcement.

"I would like to hear more details about the Senate Democrats' idea," Hiett said. "We should always look for ways of easing the strain on working families' pocketbooks."

He said House Republicans have long supported tax cuts as a way of helping working Oklahomans, and said with the plan Senate Democrats showed a "newfound enthusiasm for tax cuts."

Rep. Jari Askins, D-Duncan, House Democrat leader, said legislators "must act quickly" to relieve the tax burden.

"House Democrats stand ready to act upon gasoline tax relief, the Department of Corrections plan and worker's compensation fixes that passed the Senate yesterday. All of these issues are emergencies and need immediate consideration," Askins said.

Sen. Jim Wilson, D-Tahlequah, said "it's going to cost the state a million dollars a day, but we're going to replace that money with money from the rainy day fund. We won't be taking any money away from any programs."

Sean Mossman, communications director for Oklahoma Taxpayers United, said the group considers the Senate leaders' plan a "solid idea" on its surface. The group formed in opposition to a proposed gas tax increase that comes before voters Sept. 13.

But Oklahomans for Safe Bridges and Roads, a group that supports State Question 723, called Morgan's announcement a "stunt" and a "smart move" politically.

"In the face of a national crisis we need to govern with sound economics and not play musical chairs with our tax dollars," said Crystal Drwenski, spokeswoman for the coalition. "Taxes do not dictate the price at the pump. Market conditions do. Any slight reprieve we may see by a temporary fuel tax repeal will go completely unnoticed if gas prices continue to climb."

As for the impending vote on a gas tax increase, the two Democratic senators left the fate of the referendum up to Oklahomans' consciences.

"The people are going to have to make their own decision," Gumm said.

Luke Engan is CNHI Oklahoma reporter.

[JoeW]

This idea has little merit. It works if only a few states do it, but if every state does it (or the US Gov't does it) then the economic result is that the prices have to come up to the pre-tax-relief level to curb demand. In effect, consumers give their money to big oil rather than to the government. Last time I looked, the government (state & federal) needed the cash far more than the oil companies did.

They could actually do the inverse: raise the tax on consumers and the result would be a cut in oil company profits.

In short: It doesn't make sense to try to spur demand during a supply crisis.

JW

[rogerhb]

Alas one of our parties wants to do similar here.

So on one side you have economists claiming you have to wait for the price signal, then as soon as you get it they say, oh no, that hurts.