Sunday, February 27, 2011

How High Can We Go?

Gasoline in England has shot up to $9.67/gallon and promises to go higher with the trouble in the Middle East.  www.upi.com/Top_News/World-News/2011/02/26/Gas-shoots-to-967-a-gallon-in-Britain/UPI-78851298704546/  Oregon is not there yet but I did see premium yesterday at $3.76/ gallon and a chunk of that is for taxes.

Did you know that Oregon was the first to tax gas at the pump in 1919? It also has one of the higher gas taxes in the country as shown on the map in the attached article with a combined state/local/federal rate as high as 56.4 cents/gallon. That's about 15% of the price of each gallon. Something else that is interesting to note is that with the exception of North Carolina and Florida, all the high gas tax states are true blue Democratic politically. Also, if you correlate job growth with gasoline taxes it ain't the red states on the map shown here that are growing. An inverse relationship between high taxes and economic growth perhaps? Hmm... what a novel thought!

www.wired.com/thisdayintech/2011/02/0225oregon-gasoline-tax/

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