Gas tax

Feb 12, 2008 17:13

Minnesota's gas tax is lower than its neighboring states.
Legislature is possibly planning on  raising our gas tax by five cents, phasing it in by starting at a two-cent per gallon hike.
Low income drivers can receive a $25 tax rebate to help offset this cost. (It is estimated to cost about $42 more per year more for the average driver, and $17 could suck for some people, I understand. Then again, people with budgets THAT tight are likely to not have cars are rely on public transportation.

This would also result in a 1/2% increase in sales tax (in the Metro area). I don't see this as a big deal, because in Minnesota we do not tax the bear necessities: food and clothes.  Ultimately, it would affect those who consume more.

Furthermore, the tabs for new cars would increase, mainly the more expensive cars.  For example, cars over twenty (or maybe it's 30) thousand dollars will have an increase by over 100 dollars for the yearly license plate tabs.  WCCO news said it would not affect cars already bought, only newer cars, and mainly the more expensive ones (Lexus, Escalade, etc.)
I also don't see this as a big deal, because if people can afford a car that expensive, they can afford to put gas into it!

We need to make our roads better and create more jobs (via construction projects to improve roads and bridges).

Many republicans are against the proposal, saying it would create too many new taxes.
The democrats are proposing this bill. They seem to be considering how this could affect the poor drivers, although I'm not sure exactly to what degree.

What are your opinions on a gas tax increase (even if you don't live in Minnesota)?
How much would a phased-in five-cent gas tax hurt the poor and poor drivers?
How might it affect their driving, finances, and access to things?
How might it affect the Minnesota economy? Will it hurt the economy?
Or, will it help the economy by creating new jobs? Or, will its effects on the economy be minimal?
Whom will it affect more--the poor or the rich?
Will it decrease our fuel consumption, causing us to be more conscious of how much fuel we are burning and how much money it costs?
Will people ride bikes and use public transit more?

What do you think about this? (This is something that could happen in any state!)

driving, roads, taxes, politics, gas tax, minnesota

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