Gas tax moratorium sought
State Rep. Peter J. Daley, D-California, wants a moratorium on the state’s gas tax for the summer months, but it doesn’t look like the governor’s office will be cooperating with that request. Daley sent a letter to Gov. Ed Rendell Thursday morning, proposing that the state’s 32.3-cents/gallon liquid fuels tax be temporarily suspended for June, July and August to provide some relief to state residents and to attract tourists. Daley said the temporary tax relief would help offset the increase in gasoline prices that traditionally comes between Memorial Day and Labor Day.
“Our number two industry in Pennsylvania is tourism,” Daley said. “About 65 to 75 percent of tourism in Pennsylvania comes from within 200 miles of our border. This would be a place where you could get cheap gas. It would be a tourist mecca.”
Daley is proposing that the lost revenue be made up from the current state budget surplus of $427 million. The gasoline tax, Daley said, generates about $175 million a month, so a three month suspension of the tax would cost the state about $525 million.
“We still have the rainy day fund and the sunny day fund available,” Daley said.
Daley said his proposed moratorium has broad support in the house, but that support apparently does not extend to the governor’s mansion.
Governor’s office spokesman Chuck Ardo said the governor couldn’t support the proposal to cut the tax even temporarily.
“It’s always easy to make that call, but it’s much more difficult to replace that revenue when we need to repair the roads and bridges,” Ardo said.
Daley had made a similar request to the governor in 2004, when he asked for the gas tax which was then 27.3-cents a gallon, to be cut in half for six months. The governor turned down the request then too.
“I don’t know if Rep. Daley is proposing another funding source to replace the gas tax revenue. If he did, the governor would be more agreeable to a moratorium on the gas tax,” Ardo said.
Daley said he is also introducing legislation that would prevent gasoline retailers from increasing the price of gasoline more than once in a 24-hour period.
“I want to get it passed that you can’t raise the price on the gas you already have in the ground,” Daley said, referring to the holding tanks for gasoline.
He said he also intends to talk to members of the U.S. Congressional delegation, calling for a federal investigation into price fixing and collusion by the oil companies.
“Corporate greed is going to be the downfall of America if we don’t get this under control,” Daley said.
Daley noted that while prices at the gas pump are going up several times a week, oil companies are posting record profits.
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