Vermont House Votes to Increase Fuel Taxes

Last week, the Vermont House voted 84 to 53 in favor of raising the fuel taxes (the gasoline tax by 4 cents to 24 cents a gallon and the diesel fuel tax by 6 cents to 32 cents a gallon) in an attempt to generate $24 million needed to match federal funds for highway projects.

This is an unacceptable solution, and once again demonstrates how the tax-and-spend policies of the House Leadership are out of touch with the daily concerns of hard working Vermonters. At a time when market forces are already driving gas prices to painfully high levels, compounding this problem with even higher taxes is both irresponsible and insensitive.

It is also in sharp contrast to last year’s JRH.031, which the House also passed, “Strongly urging the Federal Government to take immediate steps to LOWER (caps added) gasoline prices,” and the Senate’s attempt this year (S.228) to disallow gasoline “price gouging” by businesses. It appears it’s easy for the leadership to grandstand about lower gas prices by telling others (the feds and small businesses) to make cuts, but when it’s their turn to step up to the plate our representatives just want more of our money.

The gas tax is a regressive tax, falling disproportionately on the backs of the poor (who spend a higher percentage of income on fuel), rural residents (who need to travel to do basic things like go to work or the grocery store), farmers (who need to run large equipment) and small trade businesses like carpenters, plumbers, electricians, etc. (who must often drive several hours a day to and from job sites), just to name a few.

Gas tax legislation now moves to the Senate.

PLEASE CONTACT: Your State Senators and tell them NOT to raise the price of gas! Prices are already painful high as it is. You can find out their contact information at http://www.leg.state.vt.us/ or leave a message at the State House at 828-2228.

PLEASE CONTACT: Governor Jim Douglas, and support his continued opposition to this tax. phone: 802-828-3333 toll-free in Vermont: 1-800-649-6825