The gas tax debate: How much do i save if we suspend the gas tax in my state?

by likelihood zero, Wed Apr 30, 2008 at 07:01:16 PM EST

Whether we are for or against the gas tax, we can all agree that we have to argue about this topic in the most honest way. It is an interesting and timely debate. Both democratic candidates have serious and strong long term energy policies, but the debate seems to be focused, here and everywhere, on the short term energy savings or the famous suspension of the gas tax. Most candidates advocate the suspension of the federal gas tax, but i think the suspension of the state gas tax might yield better results.

So, when i hear the claims that the suspension of the gas tax would save the average family 30 bucks over 3 months, i got a little curious and picked up my little calculator to see how much really the suspension of the gas tax in my state would save my family.

I AM SUSPENDING THE STATE GA TAX, NOT THE FEDERAL:

I live in a state that has two kinds of gas taxes. A constant excise tax of 9.5 cents per gallon + a sales tax of 7% per gallon, which rises or falls based on the price being charged at the pump.

My wife and I have two cars with a 15 gallon-tank each. We usually fill up each car once per week. So over a month we have about 8 or 9 fill ups for both cars.

So, let us do the math and see if we really saving $30 bucks or less or more if we suspend the state gas tax rather than the federal gas tax.

Assuming that the average price of gallon is $3.50 (actually in my state it has been 3.80 or 3.90 for the last month or so) well, we would save for each car per week $5.115. Since we have two cars, that means that we would save per week on our two cars $10.23.

Let us multiply $10.23 per 8 fill ups (8 or 9 fill up per months for both cars)and we have $81.84 per month. And in 3 months, we would save $245.52. Basically, my wife and I would save about $250 over the 3 next months, assuming that we would not take any extra road trip at all and assuming that the price of a gallon is $3.50.

Conclusion, the suspension of the federal gas tax would save me 30 bucks over 3 months, but the suspension of the state gas tax would save me about $250 over the next 3 months. So, from an economic perspective, i guess it is better to push for the suspension of the state gas tax than the federal one,




Tags: gas tax (all tags)

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Re: The gas tax debate: How much do i save if we s (none / 0)

uh how are you doing your math, they have flat out told you they are droping the price of gas $0.184 per gallon.

meaning for 10 gallons the holiday only saves $1.84 no matter where you live you save $1.84 per 10 gallons due to this 'holiday'

so no you aren't saving $10 a week, you are barely hitting $5 between the 2 of you


Obama said, as Bill beamed. "Thank you, President Clinton."
by TruthMatters on Wed Apr 30, 2008 at 07:04:13 PM EST

Everything is there (none / 0)

you just have to follow my math and you get what i get. Numbers do not lie.

Oh by the way, i am dropping the state gas tax, not the federal.


by likelihood zero on Wed Apr 30, 2008 at 07:07:32 PM EST
[ Parent ]

D'OH! You're double couting. (none / 0)

15 Gallons X 2 Cars X 9 times per month X .184 cents = $49.68

$49.68 X 3 months = $149.04


"McSame: He's Constipated and Ready to GO!
by Al Rodgers on Wed Apr 30, 2008 at 07:13:08 PM EST
[ Parent ]

I am not double counting at all (none / 0)

i am mostly calculating the impact of the state gas tax versus the federal gas tax. Read my diary, please, then jump to any conclusion you would like


by likelihood zero on Wed Apr 30, 2008 at 10:31:57 PM EST
[ Parent ]

Re: The gas tax debate: How much do i save if we s (none / 0)

15 gallons per car x 1 fillup for week x 2 cars = 30 gallons per week

30 gallons per week x 0.184 = 5.52 per week

5.52 per week x 12 weeks = 66.24

So in your case it does work out to be about 33 bucks each


by bobbank on Wed Apr 30, 2008 at 07:09:54 PM EST
[ Parent ]

Re: The gas tax debate: How much do i save if we s (none / 0)

more math for ya

you save $4.60 to fill both cars, that 30 gallons of gas, if you say 8-9 fills a month 3 months you have 24-27 fill ups

4.60 * 24 = $110.40
4.60 * 27 = $124.20

now $124.20 is TWO people, meaning each of you is actually saving $61.10 each over the entire 3 months, or $20.37 a month.

oh yeah just for fun, if a windfall tax isn't put in before the holiday in just 1 month

then that $10 billion short fall? you and your wife will have to chip in $37 dollars each or $64 for the 2 of you.


Obama said, as Bill beamed. "Thank you, President Clinton."
by TruthMatters on Wed Apr 30, 2008 at 07:10:15 PM EST
[ Parent ]

Re: The gas tax debate: How much do i save if we s (2.00 / 0)

There are many working class folks who would consider that a small fortune.


"The Bumble Bee flies because it thinks it can."
by LadyEagle on Wed Apr 30, 2008 at 07:04:33 PM EST

I am dropping the state tax, not the federal. (none / 0)


by likelihood zero on Wed Apr 30, 2008 at 07:05:40 PM EST

Re: I am dropping the state tax, not the federal. (none / 0)

is your state dropping their tax or something?

otherwise why are you dropping a state tax that your state has not said it is dropping?


Obama said, as Bill beamed. "Thank you, President Clinton."
by TruthMatters on Wed Apr 30, 2008 at 07:11:18 PM EST
[ Parent ]

Re: I am dropping the state tax, not the federal. (none / 0)

My diary is a mere exercise comparing the economic impact between the gas state tax and the federal one.


by likelihood zero on Wed Apr 30, 2008 at 10:33:06 PM EST
[ Parent ]

Re: The gas tax debate: How much do i save if we s (none / 0)

also we are forgetting that the price of gas won't actually drop THATS the whole point and thats what EVERY economist is saying.

but hey they are only economists they would know nothing about supply and demand, or anything right?

the gas tax holiday won't save you money because the price of gas won't actually go down.


Obama said, as Bill beamed. "Thank you, President Clinton."
by TruthMatters on Wed Apr 30, 2008 at 07:14:10 PM EST

Re: The gas tax debate: (none / 0)

Seems to me the Obama campaign should hire you as their Chief Economist.  By the way, I'm unaware of any proposal they have put forth to address high gas prices in the interim of solving the macro-economic issue.  


Purity! Or else!
by ChitownDenny on Wed Apr 30, 2008 at 07:16:34 PM EST

Re: The gas tax debate: How (none / 0)

Please guys this is a gimmick and I'm a Hillary supporter. It might have a marginal benefit to the very poor and therefore shouldn't be totally dismissed, but it's the sort of retail politics you get every summer. It's not going to happen so why not just forget it. Is this really the make or break issue between Clinton and Obama. Hardly.  


by ottovbvs on Wed Apr 30, 2008 at 07:18:10 PM EST

Windfall profits tax a gimmick? (none / 0)

You know what this is? It's a way to get a windfall profits tax passed.

Why? Because even Republicans would have to vote for it. To do otherwise, in Republican speak, would be to raise taxes on consumers.

And it doesn't repeal gas taxes. It just provides gas tax holidays.


by catfish1 on Wed Apr 30, 2008 at 09:14:17 PM EST
[ Parent ]

Re: The gas tax debate: How (none / 0)

Please guys this is a gimmick and I'm a Hillary supporter. It might have a marginal benefit to the very poor in rural communities and therefore shouldn't be totally dismissed, but it's the sort of retail politics you get every summer. It's not going to happen so why not just forget it. Is this really the make or break issue between Clinton and Obama. Hardly.  


by ottovbvs on Wed Apr 30, 2008 at 07:18:56 PM EST

I am curious though.. (2.00 / 0)

What about the truck drivers who are being hard hit by the rising gas costs?  Wouldn't they realize a substantial savings if any tax was suspended?  My understanding is that a lot of the rise in food costs is directly related to the higher cost of transporting goods.  


by JustJennifer on Wed Apr 30, 2008 at 07:22:42 PM EST

Re: I am curious though.. (none / 0)

Then give them subsidies.


We care about politics because we know politics matters for people's lives and opportunities.
by politicsmatters on Wed Apr 30, 2008 at 08:43:31 PM EST
[ Parent ]

Both campaigns should ..... (none / 0)

drop this and instead simply pose a visual of Bush in flightsuit onboard the aircraft carrier with 'Mission Accomplished' banner overhead superimposed over any local gas stations's price board.

That's the only way to use gas prices in this election.


Hell's bells, even the GOP didn't have to crucify Eisenhower's record in order to make Reagan their 'saint'. We can have two great ones, you know?
by emsprater on Wed Apr 30, 2008 at 07:22:58 PM EST

Re: Both campaigns should ..... (none / 0)

test


Hell's bells, even the GOP didn't have to crucify Eisenhower's record in order to make Reagan their 'saint'. We can have two great ones, you know?
by emsprater on Thu May 01, 2008 at 12:43:19 PM EST
[ Parent ]


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