Thursday, May 22, 2008

Truth In Politics: Illinois Gas Prices And Taxes

A story of interest for those of you who are following the price of gas these days from WBBM-TV:
"Does it trouble any of you when you see what you're doing to us?" Illinois Sen. Dick Durbin asked at a Washington, D.C. hearing.

Durbin complained to oil company bosses at a hearing on Capitol Hill about Chicago having the highest gasoline prices in the United States. Largely ignored was the role taxes are playing -- an astounding 10 levels of taxation.

In the city, Motor Fuel Taxes originally for building roads currently go to the Feds, Illinois, Cook County and Chicago. The 9.25 percent sales tax is split among Illinois, Chicago and Cook County's share of the state sales tax; a county home rule tax; RTA transit tax and a Chicago home rule levy.

The watchdog Civic Federation says that on a $4 gallon of gas, the total tax is 79.2 cents. That compares to 77 cents in Los Angeles and 65 cents in New York City.

"Every time the price of gas goes up, the tax goes up with it," said one motorist.

And that, of course, is exactly the point for the politicians. Gov. Blagojevich, for example, is counting on the high price of gasoline to bring at least an extra $220 million in the State Treasury in the fiscal year that begins this July. Most of that will be used to balance the way-out-of-balance budget.
Of course it could be alleged that one solution to drive down the price of gas is to allow for the drilling of oil. At that we can reduce our dependency on foreign oil. Though for some that makes too much sense and apparently people who consider themselves environmentalist hold a lot of sway.

How is anyone making out with fuel prices out there? Is there much difference between prices in Illinois or in the city versus that in Indiana? It was mentioned earlier in that write-up that one woman was over in Indiana taking advantage of cheaper gas.

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