Cons

Raises tax on gasoline by 10 cents  per gallon.  If gas costs $3.33 today, with tax it will cost $3.43.

Does not tax the wealth as much a percent of their income, as it would tax those on the lower levels.

Takes consumer’s money away from discretionary spending on other items.

Could cause truckers to fuel up in other states.

At a drive rate of 25,000 miles per year, at an mpg of 20 miles per gallon, the number of gallons used would be 1,250.  A ten cent tax on each of those gallons amounts to $125 per year…  Per month that would be .. $10.41… Per day…$ 0.32…  If one drives less, or has higher mpg, one pays less.

Gasoline tax has lost its value over the past decade. Changes in fuel-saving automotive technology and driving habits are resulting in less revenue to repair crumbling bridges, repave highways or upgrade buses and trains.

Pros

Jobs, jobs, jobs,  with funding highway construction can get into gear.

Solidifies the Transportation Trust Fund, which has been robbed to simply run government. That’s been squeezed and squeezed and squeezed, and specifically what has been squeezed out of it is the ability to build more capacity to deal with congestion. All that’s left, pretty much, in the capital budget at the state level (for roads), is maintenance and repair.

DelDOT’s capital budget would increase from $128 million this year up to $192 million next year.

Opens door of super high tax rate on the super high wealthy in this state. Those who should be paying 15%.

Encourages people to use less petroleum.  Smaller cars, higher MPG’s, more public transit, less pollution,  get bumps when gas rises higher.

Allows state to tap in on all those people using 95 who pull into the best service center on the East Coast, perhaps the nation.

County and local roads which have also have suffered, may now finally receive repair.

The current poor condition of roads costs drivers in Delaware cost $2,500 per person per year in extra fuel, wear-and-tear and lost time.  This cost must be balanced against the cost of an additional 10 cents per gallon. (Compared to the $125 per year cost of the tax.)

We paid more in the past.  Driving the same 25,000 miles back when cars ran on 10 mpg,  the same mileage would have generated.  $250 dollars…  Fuel efficiency has cost state transportation funds half of what they once used to receive….

The tax was last raised in 1995… Since then, what we could once buy for $250.00, we would now need $382.00.  The money we collect does not go half as far….

States with lower gas taxes actually pay more for the gas in the pumps because the market will bear it.  Sam’s Gas (Walmart) in Athens, Georgia, where there is  a 7.5 cents Georgia state tax on gasoline…. sells gas for $2.99….   Putting the price of  the cheapest Athens, Georgia gas today is $2.915… In Delaware, Wawa has $3.23 up on their sign, (as of a couple of hours ago.)  Today Delaware’s tax is 23 cents per gallon…  The cost of the gas minus taxes is $2.99….  some may say… aha!  Georgia is cheaper.  But that would be comparing Sam’s Club to Wawa.  One would expect Sam’s Club to be cheaper… It is a “club”… is it not?  The lowest priced national brand in Athens, Georgia is the Shell Station on Atlanta Ave. near Trade Street.  It’s pump cost is $3.19…  Deduct the 7.5 cent gasoline tax, and Georgians are paying $3.115 per gallon for gas;  the comparative Delawarean price with Delaware’s tax tacked on, would be… $3.35….  Today that is 8 cents higher than most stations sell in Delaware today…..  Point is… consumers don’t absorb the gas cost… The $4 billion dollar gas companies do!

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The benefits outweigh the cost.

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With so many great benefits, it seems senseless to halt them all for a price jump that can occur on it’s own at a moment’s notice…  No more difference from driving past a gas station in night checking the price, and doing it again in the morning and cursing you didn’t fill up the night before…

Thus, are the pros and cons of raising a gas tax….  if the poor and middle class are being asked to sacrifice, come later, THE WEALTHY HAD BETTER BE FORCED TO DO THE SAME…. IT’S AN ELECTION YEAR YOU KNOW……  Pass this minor tax on the poor, then raise state income rates where they should be… As a reminder I’ve included them below…….

Recommendations for 2014:

Go to multiple tiered tax rates:

15% on $1 billion or more
10% on $100 million to $1 billion
9% on $10 million to $100 million
8% on $1 million to $10 million
7% on $500,000 to $1 million
6.75% on $60,000 up to $1 million

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