Thursday, April 23, 2009

Swapping Oil Company Taxes For Traditional Gas Taxes Puts GOP On The Hook

The GOP has blasted the proposed oil company tax proposed by Gov. Jim Doyle.

So if the GOP wants their precious highway expansions, they'll have to vote for fresh gas tax, perhaps three cents or more a gallon.

Cutting the highway budget would relieve this pressure, but no one is willing to do what's logical, so now the game is to make someone bear the political burden of raising taxes.

My guess is that the GOP will take the bait.


Anonymous said...

Uh... the GOP will end up voting for neither tax.

Dave1 said...

The "oil company tax" really isn't a tax on the big oil companies since for the most part, they don't have a presence in Wisconsin.

As for the anti pass through provision, most legal opinions believe that it will be found unconstitutional for violating the commerce clause of the US Constituition (this is what happened year ago when NY tried this).

In the end, the tax will be passed on to consumers and the net effect will be just like an increase in the gasoline tax. Perversely, it will increase when prices are highest.