Demos: Suspend Florida gas tax

[Freddie Stubbs]

Florida lawmakers called for a gas-tax break, and officials launched price-gouging investigations.

BY ELAINE WALKER

[e-mail]


Democratic state senators called on Gov. Jeb Bush Tuesday to suspend the Florida gas tax for at least a month to help ease the pinch for consumers at the pump. Bush later told reporters that his office was studying the issue.

At the same time, Florida Agriculture and Consumer Services Commissioner Charles H. Bronson announced Tuesday that he had issued subpoenas for all 19 oil companies that bring fuel into the state. It's part of an expanding price gouging investigation in the wake of Hurricane Katrina.

Florida Attorney General Charlie Crist said Tuesday his office will decide this week whether to subpoena owners of at least 10 Florida gas stations, including one in Broward County, that investigators found raised prices as much as 85 cents in 48 hours.

As government leaders grappled with ways to deal with the skyrocketing gas prices, the good news for consumers is that the situation at the pumps Tuesday was improving slightly. Supply has stabilized statewide, except for the Panhandle, and prices may have peaked over the weekend.

more: http://www.miami.com/mld/miamiherald/news/12576490.htm

[nytemare]

1. Jeb has suspended the gas tax before, I think at least twice

Once last year I think in July. I don't see why he shouldn't now.

[Freddie Stubbs]

2. No he didn't

He signed a bill passed by the legislature to suspend it. It is unclear whether or not he has the authority to do so with the approval of the legislature. Either way, it puts him on the spot and makes the Democrats look more decisive.

[nytemare]

7. Yeah, that's true.

I just remember the gas tax being suspended a couple of times. Last time I remember it right before Charley hit, so I think it was July last year, or early August. I was thinking they should have continued it for a while after Charley, but they didn't.

[RebelOne]

3. Gov. Perdue has already suspended the gas tax in Georgia.

But it still isn't providing any relief at the pump.

[mccoyn]

4. How does cheaper prices reduce a shortage?

Prices go up to reduce the demand enough to match the supply. If you cut the taxes, then prices just have to go up that much more to reduce the demand.

If the problem is price gouging then go after the gougers. If the problem is short supply then begin rationing.

[Nihil]

5. Congratulations!

Unlike the donkeys in Florida (and Georgia by the sound of it), you've
managed to spot the major flaw in this strategy ... if it's cheap, the
people will buy more of it even though there isn't more to go around!

Gas tax should be put UP not down but rationing would be a good idea
in the short-term.

[yppahemnkm]

6. Wish this would happen nationally

Any chance?