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Another gas tax holiday proposal

Friday, Apr 29, 2005

WBBM NewsRadio has been all over the gas price story, even adding a brief feature that encourages motorists to call in and report which stations have the lowest prices.

So, this looks almost like a tie-in story to their promotional feature.

Will the Illinois legislature pull through with relief from high gas prices? […]

Lawmakers in the Illinois House and Senate are eyeing ways to try to give motorists relief from high gas prices.

State Sen. Steve Rauschenberger (R-Elgin) says he’s eying either a gas sales tax holiday, capping the tax, or rolling the tax back, and working one of these ideas into the Fiscal Year 2006 budget.

Both Rauschenberger and State Rep. David Reis (RICE) (R-Willow Hill) say the state is making more money off the gasoline sales tax than originally budgeted because prices are higher than expected. […]

State Rep. Mike Boland (D-East Moline) says he’d make a push for a gas sales tax holiday, but he doesn’t think the governor would support it.

If the state eliminated the tax now it would cost $45 million a month. That reason alone is why a spokeswoman for the governor’s office says it won’t happen this legislative session.

- Posted by Rich Miller        

32 Comments
  1. - Anonymous - Friday, Apr 29, 05 @ 1:48 pm:

    Gas taxes go for highway and road maintenance. Less taxes, even crummier roads. Do we make every major thoroughfare a toll road?People have to understand that, despite the gamesmanship going on, the era of cheap gasoline is ending, if not already over.


  2. - Anonymous - Friday, Apr 29, 05 @ 1:52 pm:

    Sorry, I stand corrected on the sales tax, which is not directly tied to highway/road improvement. However, this still begs the question of is whether our political leaders are going to look past their eyelashes and realize the era of relatively cheap energy is ending?


  3. - Anonymous - Friday, Apr 29, 05 @ 2:07 pm:

    Gadfly’s like Mike Boland will do anything they can to get themselves on television. Who cares if what he is saying is not going to happen? It’s never stopped Boland before, why now?


  4. - Dan Johnson-Weinberger - Friday, Apr 29, 05 @ 2:18 pm:

    Horrible idea. We should be taxing gasoline more, not less, if we want to become energy independent. But (admittedly) very popular.


  5. - Anonymous - Friday, Apr 29, 05 @ 2:22 pm:

    What impact would a gas tax rollback have on the distribution of Motor Fuel Tax dollars to municipalities. MFT is relied upon heavily to fund local infrastructure improvements. Is this another Springfield tax “rollback” that will only show up on local property tax bills?


  6. - Anonymous - Friday, Apr 29, 05 @ 2:29 pm:

    This might be stupid, but, why don’t we tax by the gallon of gas instead of the dollar amount of gas? Then the state would always be charging the same tax per gallon. Someone could claim it to be a tax cap and the higher the price of gas goes the taxes remain the same.


  7. - Anonymous - Friday, Apr 29, 05 @ 2:31 pm:

    Why doesnt Rauschenberger tell his fellow Republican in the White House to quit bowing down to the oil & gas industry and do something proactive to fight the price of gasoline nationwide?


  8. - Anonymous - Friday, Apr 29, 05 @ 2:47 pm:

    The State already taxes motor fuel by the gallon; that’s the Motor Fuel Tax. The sales tax (which is also charged) is based on the dollar value of the gasoline. The other problem with a “tax holiday” idea is that the State tried it once and never really recovered (remember Governor Ryan?) the $180 million or so of revenue that was lost.


  9. - the Other Anonymous - Friday, Apr 29, 05 @ 3:47 pm:

    Illinois is one of only a handful (maybe the only) state that charges both a per gallon motor fuel tax and a sales tax on top of that.

    But let’s face it, reducing the tax on gas is only a temporary fix. The world is reaching peak production at a time when demand, particularly from newly industrializing countries, is rising. We can have a tax holiday, but the price of gas will inevitably go up.

    The solution is a long-to-medium term strategy designed to wean us from oil. Unfortunately, the current administration’s policy is about increasing (domestic) oil production. That works for a few years, but doesn’t address the underlying world shortage of cheap oil.


  10. - Anonymous - Friday, Apr 29, 05 @ 3:59 pm:

    Doesn’t this create a bigger hole in the budget for Rauschenberger to deal with when he’s occupying the Governors Mansion in 2007?


  11. - Anonymous - Friday, Apr 29, 05 @ 5:10 pm:

    Rich for the record, WBBM has had the call in with the lowest gas price feature for quite some time, to you point however, it does take on greater signifigance if they are running in directly after the news story reporting on the high cost of gas. by the way the lowest i have seen was in Indiana for $1.90 of course you don’t know what time zone you are buying it in but it is cheap


  12. - Anonymous - Friday, Apr 29, 05 @ 8:31 pm:

    That is SUCH a bad idea. The state can’t afford any tax breaks..especially one that would cause another million-plus deficit. Why would a clueless, lost legislator like Reis and overly-ambitious Rauschenberger decide to announce an idea like this? It’s going to anger the business community who understand the economic impact of such an idea—


  13. - Anonymous - Friday, Apr 29, 05 @ 8:37 pm:

    …and I can’t imagine that the sales tax makes a huge difference when it comes to impact at the pump. Yeah, it might amount to 10 cents a gallon these days, but who’s to say if that’s because the state dropped the sales tax or the gas station just changed its prices again? There’s so much movement in gas prices I doubt anyone really notices.

    Repeal the motor fuel tax and, wow, people would notice. But it would be really, really dumb.

    And yes, other states don’t double-tax gas at the pump. But then other states tax food and medicine too…


  14. - Anonymous - Friday, Apr 29, 05 @ 8:53 pm:

    If the government budgets $1 billion for tanks, how much will tanks cost?

    Similarly, if the state budgets $1 billion dollars for road repairs, how much will road repairs cost? What if they only budget $980 million?


  15. - Anonymous - Friday, Apr 29, 05 @ 11:08 pm:

    I know this is an early 90s reference, but this is so bad idea jeans it’s not even funny.


  16. - Anonymous - Saturday, Apr 30, 05 @ 2:17 am:

    The huge waste and corruption in state government force taxpayers to take a “starve the beast” approach, recognizing that what state monies are left may not be
    distributed effectively among the various services, and that the corrupt politicans, the corrupt contractors, the unions, and the
    overpaid state employees and mismanaged state agencies will continue to get their cut, although perhaps a smaller one.

    Unfortunately, this leaves the
    average struggling taxpayer with no choice but to support tax cuts
    like cuts in the gas tax–any tax cut we can get. We derive little benefit from state government and the monies we are paying out for mismanagement and corruption are badly needed at home to raise our families and prepare for our (unpensioned) retirements.


  17. - reddbyrd - Saturday, Apr 30, 05 @ 10:02 am:

    I thought Rauschie had some othersilly stunt planned for Friday?
    Anyway anyone remember the last gas tax holiday stunt? George Ryan and Lee Daniels. Price did nto go down and state lost$$$.
    Finally lets remember prices go up becasue the gougers at ALL levels — BushCheneySaudiPrinceetal —want more $$$ if there was a supply problem there would be rationing not high prices Remember the 70s. If not look it up.


  18. - Anonymous - Saturday, Apr 30, 05 @ 10:46 am:

    Illinoisans can do a lot of this through self help-take every opportunity to cross the borders to lower tax states-you know kind of like canadian drugs. Of course if you don’t want to deprive our government of all your gas tax, don’t do this.


  19. - Anonymous - Saturday, Apr 30, 05 @ 2:47 pm:

    Anyone who refers back to the George Ryan Gas Tax Holiday is totally missing the point. Back then the legislators voted to do away with the tax for six months because the state had plenty of money in its coffers. (it was also an election year ploy)

    Fast forward to the summer of 2004. The states budgeteers forcasted the tax revenues from the sale of gasoline at probably $1.60 per gallon. Now the price is $2.20 or higher and the state is clearly taking in more tax revenue than had been forcasted.

    With intelligent proposals like a 2 or 3 month Gas Tax Holiday, the state will still take in the same amount of taxes and at the same time give some relief to the consumers of this state who have less disposable money to spend on the other things in life because they are using it all to fill up the car each week.

    Great proposal Reis and Roshie!


  20. - Anonymous - Saturday, Apr 30, 05 @ 3:13 pm:

    No one has really mentioned terrible effects high gas prices are having on our working poor, small businesses, and local governments.

    Because of the total lack of attention given to economic developement in this state, many of the low wage earners must drive up to an hour to work. Landscapers, mowing services, transportation providers are paying much more to operate their businesses. And local governments and school districts are spending more dollars than ever protecting and educating our citizens and completely blowing up their budgets.

    Its not suprising that the liberal tax and spend people in this state don’t see this as a burden on the tax payers - they just see more $money$ to blow.


  21. - Anonymous - Saturday, Apr 30, 05 @ 7:12 pm:

    You are all missing the point, and that includes any fool legislator who uses this attempt to get attention ploy when gas prices are high is high.

    As Americans we think we deserve cheap gas. Oil is a finite resource controlled by a bunch money grubbing USA haters, who love to take our money. Gas prices are TOO CHEAP! If they weren’t do you think there would be so many SUV’s on the road?

    Perhaps congress should force Detroit to build more fuel efficient autos. Set a real minimum standard for MPG and inforce it upon any auto maker. While they are doing that, (yeah, sure) they should tax the crap out of any imported vehicle that doesn’t meet the standard. It might help the US auto industry.

    But no more silly ass gas tax holiday proposals. They are just for publicity.


  22. - FightforJustice - Saturday, Apr 30, 05 @ 9:45 pm:

    A tax on a tax is a disgrace. A little holiday from this double taxation is a good idea.

    If we want to discourage gas consumption, how about repealing the tax deduction for purchasing a large SUV/Hummer for business purposes?


  23. - Anonymous - Saturday, Apr 30, 05 @ 10:10 pm:

    45 million a month loss in revenue equals 540 million hole in budget that is already $2 *B*illion in the red.

    Just in case anyone missed that part.


  24. - Mongo - Sunday, May 1, 05 @ 7:28 pm:

    bad, very bad idea…populists unite!

    elected a Republican with a beard!

    the guy with the noive to show his face with his name (Dan JW) is right, we should tax more here not less.


  25. - Tom Joad - Sunday, May 1, 05 @ 7:38 pm:

    The sales tax on gas was suspended for six months a few years ago. When it went back to where it was before, The Petroleum Marketers Lobby had stickers put on every gas pump saying the legislature raised gas prices by 5% at this pump, contact your legislator to complain. Those notices are still on some pumps. So, this time maybe they should include Rausch’s picture on the pump with the same notice!


  26. - Anonymous - Sunday, May 1, 05 @ 8:08 pm:

    Go Mike!

    Mike Boland for State Treasurer!


  27. - Anonymous - Monday, May 2, 05 @ 2:45 pm:

    Agreed!

    Boland for Treasurer!

    Mike knows how much of a regressive tax this is and how it hits Illinois famlies who can least afford it.


  28. - Anonymous - Monday, May 2, 05 @ 4:53 pm:

    I really hope Mike Boland does run for Treasurer. He has 10 good years of activism for issues he beleives in- CUB, Soybean Ink, Campaign Reform, and Election Reform, solid work with and for Firefighters. We need someone other than a Chicagoan on the ticket, and Mike Boland can win both the primary and the general- even against JBT. I say run MIKE run!!! There are a lot of people who will help you!!!


  29. - PrairieStateDem - Tuesday, May 3, 05 @ 10:34 am:

    intresting last few posts…

    There is lots of talk across the state about a Boland candidacy for State Treasurer.

    Its definetly been a buzz recently..people seem pretty receptive to it.

    Hope Mike decideds to make the run, we sure need a downstater in a statewide office again.


  30. - Rich Miller - Tuesday, May 3, 05 @ 12:22 pm:

    LOL


  31. - Anonymous - Tuesday, May 3, 05 @ 4:59 pm:

    rural areas and truckers hate all the taxes on gas
    AND the Tolls
    Rod may not raise income taxes but he is raised everythign else


  32. - Roger Wilco - Tuesday, May 3, 05 @ 9:14 pm:

    There is no need to have a “Tax Holiday”. The Illinois public has now become desensitized to the $2.00 + per gallon price and I doubt very seriously if the prices will ever drop much below that. Regardless of the actual cost involved.

    Politically? I don’t see how it would make much sense at all. The media and the legislature have continuously burned it in our minds the state has no funds to even accomplish its basic duties. Where would the justification come from to deprive the state of even more money?


Sorry, comments for this post are now closed.


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