Massholes Driving Less
TAGS: Deval Patrick, gas tax, Taxes.
While many Democrats on Beacon Hill think that a rise in prices (i.e., taxes) is welcomed by many, you can’t argue with the fact that people are driving less these days because of the high cost of gasoline. Consequently, this is causing less tax revenue for the state.
As gas prices rise and people drive a bit less, the state is losing gasoline tax revenues it relies on for road and bridge projects.
The U.S. Transportation Department reported Monday that Americans drove 9.6 billion fewer miles in May than they did in the same month last year. It was the seventh month in a row that overall driving had declined.
In Massachusetts, gas tax collections were down 2.4 percent in the month of June. And since the tax is assessed on a per-gallon basis, higher fuel prices do not translate to higher tax receipts.
The Legislature is currently considering two bills that would give Gov. Deval Patrick the authority to borrow up to $3 billion for roads and bridge project, with the bonds to repaid by future gas tax receipts.
Governor Patrick has also signed a law that aims to promote advanced biofuels.
What Beacon Hill Democrats need to learn from this is whether its the cost of gas, or a “small” rise in taxes, people don’t like spending more money for the same thing, or less. If rising gas prices make us drive less to compensate, what do you think raising taxes does?
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Aaron Margolis is a life long resident of the Bay State, and works at an architectural firm north of Boston. Aaron has a Master of Architecture Degree from Boston Architectural College and is currently in the process of becoming of a Registered Architect.
I’m sure the state will make it back when we become Homo Honeymoon Haven in tourism revenue
Forget worrying about a loss in revenue.
Lets start worrying about the REAL problem; SPENDING!
“Homo Haven” or not, these clowns need to start looking at ways to cut costs, not increase revenue.