In a news release, Governor Rendell Calls on Bush Administration to Investigate Exorbitant Gas Prices.
Governor Rendell is simply using demagoguery about the “profiteering oil companies” to justify his massive tax increase. He follows it up with recommendations for new government spending and regulations.
In related news, the Commonwealth Foundation Calls on Bush Administration to Investigate Exorbitant State and Local Taxes. As noted in this commentary from last year:
- Adjusting for inflation, the price of gasoline increased only 11% from 1982 to 2006, whereas the per-person price of Pennsylvania’s state government increased 102%. Who is really gouging who?
- In the first quarter of 2006, Americans spent 2.9% of their personal income on gasoline and motor oil. In 2006, Pennsylvania taxpayers will pay 31.2% of their income in federal, state, and local taxes.
- In fact, the increased spending on gasoline since 2003 represents less than 1% of personal income. However, Pennsylvanians will pay 3% more of their income in taxes in 2006 than they did in 2003. That increase alone represents more than total pending on gasoline.