Saturday, August 05, 2006

Suspending Gas Tax a Good Idea

House Democrat Minority Leader Patrick's Bauer call to suspend Indiana's sales tax on gas is a good idea, but why does it take the Governor to declare an energy emergency?  Yes, fuel prices are higher than what we've been used to, but that hasn't slowed our consumption down.  We're far from a state of emergency. 

There are many other good reasons to suspend the tax.  If there were no 6% surcharge on fuel, not only would individual pocketbooks benefit, making it easier to provide for family needs, savings and consumer purchases, but small businesses would retain much needed funds that could be put to use in better ways, perhaps by hiring another employee or funding research and development or purchasing another building or vehicle to help the business grow.  All facets of the economy would benefit.

The General Assembly should not stop there, however.  A temporary suspension is not the complete answer.  The state should permanently cut the sales tax rate in half to 3% for all goods and services.  This would benefit the state, individuals and small business much more than a temporary suspension of the sales tax on gas.

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