Posted on 05/16/2008 11:57:09 PM PDT by neverdem
With gasoline prices hitting new records daily, oil companies are not the only ones raking it in. New York City is profiting, too.
The city’s 4 percent sales tax on motor fuel sold brought in $26.4 million in December, January and February, or 8.6 percent...
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The idea of switching from a percentage-rate tax to a flat fee on each gallon is not new: Two years ago, a law change invited counties in New York to do just that and cap their sales taxes on motor fuel at 8 cents a gallon. Fourteen counties — but not New York City — made the switch, to ease the burden on consumers.
But several of those counties found the change fell short of its promise. Prices at the pump barely budged, while tax receipts fell. Some county officials accused oil companies of soaking up the tax breaks that were meant to benefit drivers. Half of the 14 counties have reinstituted percent-based taxes.
“You’re kidding yourself if you think that an industry that makes as much as it can will pass along the savings to the public,” Michael F. Conners II, the comptroller in Albany County, which abandoned its flat-fee tax after six months. “The oil companies say they would never take this tax away, but it’s absorbed into the price.”
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Each gallon of gas sold in New York actually includes eight different taxes. In addition to the city’s 4 percent sales tax, and the transportation authority surcharge, there is a federal excise tax of 18.4 cents. The state also collects an 8-cent excise tax, an 8-cent sales tax and a petroleum business tax of 16.4 cents a gallon.
In addition, drivers pay a “spill tax” of 0.3 cents a gallon for environmental preservation and a petroleum testing fee of 0.05 cents...
(Excerpt) Read more at nytimes.com ...
Unions Bankrolled Analyst Vetting Pension Bill
Assembly Halts Bills With Analysis by Union-Paid Actuary That's quick!
FReepmail me if you want on or off my New York ping list. Anyone can post any unposted link as they see fit.
a flat tax is a fat tax on consumers....no NY lib/dem politician will ever vote to lift a tax off the backs of those that pay...they will only change the name...and as Shakespeare wrote.....a tax is a tax is a tax!!!
Thanks for the ping!
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