Today is Tuesday, 26th November 2024

NY: What is The Real Cost of Cutting Gas Tax?

From Saratogian.com:

Local gas stations within a few feet of each other might vary in price by a few cents per gallon. Even a small spread feels pretty important these days and it made us want to shop around. Some people like comparison shopping. But if it costs more to drive around looking for a bargain than you save once you find the cheapest price, that’s called a false economy.

The same principle applies to the gas tax holiday that some politicians want people to believe will help relieve the pain of higher prices at the pump.

The federal gas tax amounts to 18 cents a gallon. A combination of state taxes comes to an additional |32 cents per gallon. And local governments exact their share, too, with the entire gas tax package coming to |65 cents a gallon in New York state, according to figures from the office of state Senate Majority Leader Joseph Bruno. That’s almost the difference between what gas cost around here last year at this time and what it costs today.

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