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Jun 19, 2007

* USA - Gasoline tax increase will backfire

Eugene,OR,USA -The Register-Guard, by Ron Tyree -June 17, 2007: -- ... the Eugene City Council's decision to increase the fuel tax to 8 cents per gallon, effective July 1, missed the point on several issues... First of all, a fuel tax is an appropriate source of funding to repair and maintain streets. The problem is the attempt to implement it on stations within the city limits of Eugene, but not on stations in nearby cities or in the county, giving those stations a 5-cent to 8-cent per gallon price advantage... This strategy is not fair to local service station and cardlock operators and will not allow the tax revenue or the businesses to be sustainable... Another point that gets missed in this discussion is that the tax is on all fuel, not just gasoline. Diesel and bio-diesel that are purchased in Eugene are also taxed at the increased rate. Trucking companies that purchase their diesel in Eugene will now be at a greater disadvantage when competing for trucking business...

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