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To: nonamer

Not sure how you think my comment is wrong or as you state the “opposite is true”

...California will recieve less revenue from sales tax when the price per gallon goes down.

Excise Tax is per gallon

Sales tax is by percentage

http://www.boe.ca.gov/sutax/strf.htm

Thx


15 posted on 11/09/2014 11:13:51 AM PST by jcon40
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To: jcon40

You’re right. I should have explained it differently and not used sales tax when I was only referring to the excise taxes collected on a gallon of fuel. I guess the point is that people historically demand more fuel when prices go down so States will collect more excise taxes on fuel. Additionally, it’s a safe assumption (according to the article) that the “savings,” if there truly are any, is going to be spent so States won’t lose much, if any, revenue from sales tax receipts on reduced fuel prices.


22 posted on 11/10/2014 7:39:52 AM PST by nonamer
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