Estabrook: Gas tax cap was just a quick fix

By Carole Estabrook

Saturday, February 23, 2008 11:24 PM EST

A proposal to repeal the gas cap in the city of Auburn has met with some resistance. Under the existing cap the city stops collecting sales tax on gasoline at $2 per gallon.
Opponents of the repeal argue that eliminating the gas tax cap would have a negative impact on commuters. The price of gas could raise as much as 4 or 5 cents a gallon.

A bit like robbing Peter to pay Paul, the revenue would come from residents to benefit residents. Adopted in 2006, the existing law benefits the public, but reversing the cap would undoubtedly provide the city with more tax revenue.

If anything, the cap should never have been implemented to begin with. The backlash of overturning what was supposed to have been a temporary Band-Aid is precisely why I disagree with Gov. Eliot Spitzer's “reclassification” of hard lemonades and cigars. Such measures buy time, but they don't correct larger issues.

The problem is that these financial burdens always fall on the lower-middle class; families who are not eligible for social assistance, but not wealthy enough to keep up with the struggling economy.

Auburn needs investors; individuals or organizations willing to spend money to make money to bring business, culture and families to our area. Fortunately, such organizations have already seen the need and potential for improving the city and renovations are already in the works.

Residents need to continue to support investment initiatives. In a buyers market, we need to strike while the iron is hot. Entrepreneurship is risky, but fortunately there are successful models that the city can emulate, eliminating some of the financial pit-falls of trial and error.

Auburn doesn't need a quick fix proposal. You can sneak in a percent or so of additional taxes anywhere you want, but the only way to generate capital is through business enterprise.

Besides, the increasing cost of gasoline coupled with heightened global awareness of the dangers of pollution only strengthens the contention that a cheaper, greener alternative is long overdue.

Bottom-line: if Auburn is limping along on the strength of competitive gas prices, we have bigger problems than a few cents a gallon.

Estabrook's column appears Mondays in The Citizen and she can be reached at estabrookcarole@yahoo.com

The Citizens' Say

There are 1 comment(s)

brew1234 wrote on Feb 19, 2008 1:30 PM:

" All forms of government have been taxing gas for many years because it was a cheap commodity that would not hurt the public's pockeetbook. It is no longer a cheap commodity. These governments need to keep the tax stable or start to reduce the levy. The tax collectors are like drug addicts, they need a larger fix as time goes by. At first the gas taxes were to pay for highway construction and maintenance. Now the taxes are going into the general fund and fueling the growth of government budgets. These taxes should be capped. Why should the government reap a benefit of new revenue by making the working stiff's burden heavier? "

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