We previously analyzed and evaluated the $600 Million tax increase package that was passed by our state legislature in July. This tax increase package was sold to the public as a "transportation financing bill". As part of this tax increase package, our gas tax jumped from 21 cents per gallon to 24 cents and we were going to pay a new sales tax for computer services (before it was repealed by a near unanimous vote). However, our analysis found that approximately 70% of the new taxes from the “transportation financing bill” will go to the general fund, not to transportation programs and projects.
After working hard to elect reform-oriented candidates to Newton's Board of Aldermen and School Committee, we decided to take a little respite from Newton civic affairs to support The Committee to Tank the Automatic Gas Tax Hikes in their efforts to repeal the automatic gas tax increase that was passed by the state legislature as part of the $600 Million tax increase package. We opposed the recent tax increase package passed by the state legislature and our opposition was justified when we found that approximately 70% of the revenue raised would go to non-transportation related programs and services. Our membership enthusiastically signed the petition papers and NTA President Joshua Norman helped gather a couple dozen signatures personally, as well as identified a public event that helped harvest another couple dozen signatures.
One thing that struck us was that the federal and state governments make more money on a gallon of gasoline than the oil and gas companies. The federal excise tax on gasoline is 18.5 cents per gallon and the Commonwealth of Massachusetts excise tax on gasoline is now 24 cents, up from 21 cents. This compares with the 8 cents profit that the oil and gas producers. Furthermore, the government does not have to find the oil, pump it out of the ground, then ship it across the continent or the ocean to be refined before it reaches the gas pumps.
The biggest insult as part of the recent Massachusetts tax increase was that the legislature passed a bill to peg future increases in the gas tax to the notoriously inaccurate Consumer Price Index.
Beginning in 2015, the state gas tax will go up (but never down) automatically every Jan. 1. Happy New Year. And the Legislature will never have to vote on it again.
The only way left to stop this permanent, automatic gas tax hike is to repeal it at the ballot box next November. However, the taxpayers first have to get 68,911 signatures to start the process to put it to a vote. A group called Tank the Gas Tax set a goal of gathering 100,000 signatures and so far has gathered 75,000. We urge all Newton taxpayers to download, print and sign the petition, which is available at www.tankthegastax.org.
In conclusion, we urge all Newton taxpayers to download, print and sign the petition and then submit to the City of Newton's Elections Office. We urge the repeal of the automatic gas tax increase for the following reasons:
- We believe that our elected officials should be required to take a recorded vote if they want to raise our taxes
- The "transportation financing bill" was sold to Massachusetts taxpayers under false pretenses.
- The federal and state government collectively make more than 5X the money on a gallon of gasoline than the oil companies responsible for finding the oil, pumping it out of the ground, then shipping it across the continent or the ocean to be refined before it reaches the gas pumps.
- The Commonwealth of Massachusetts didn't need to raise taxes considering that it generated over $600 Million in unexpected tax revenue during the year.
- The Commonwealth of Massachusetts has a structural spending problem that has resulted in it accumulating $82+ Billion in debt.
