Reform Before Revenue

“Reform before revenue” is not a meaningless slogan – especially for the hundreds of thousands of businesses and residents of the Commonwealth who will incur additional burdens and higher costs — not only directly at the pump but also indirectly for a wide array of goods and services as the impact of a gas tax increase ripples through the economy.

Economic Impact

The economic impact of making the gas tax the highest in the nation (or even close to the highest in the nation) has not been adequately considered. First, studies have shown that gasoline prices affect consumers’ overall spending behavior more than any other economic factor. Nearly 60 percent of consumers say that gasoline prices have a “very significant effect on their spending behavior.” Avoidance of gasoline purchases in Massachusetts by tourists, long haul drivers, sales and delivery personnel will reduce the proceeds form the sale of gasoline, as well as the state’s tax revenue. Consumer consolidation of purchases when gasoline prices are high will mean sales of groceries, clothing, and appliances will be made at out-of-state businesses. Secondly, the tax on gasoline, like taxes on most necessities, is a regressive tax as it represents a much larger piece of the budget of people with lesser means. The burden of any increase in the gas tax will land most heavily on those who can least afford it. Third, tying the proposed gas tax increase to inflation is a “stealth” provision that will allow this excessive and regressive tax to increase every year without any legislative debate or approval.

Transportation Bureaucracy

In addition, significant reform of the state’s transportation bureaucracy has not been adequately explored. More than two years ago, the Transportation Finance Commission issued its report called “Building a Sustainable Transportation Financing System” which contained numerous proposals for cost saving measures. We support the implementation of the Commission’s recommendations, including a unified surface transportation system, an immediate acceleration of the process for responsibly and efficiently building roads and bridges, and reforms of public transportation employee benefits (including health insurance and pension benefits) that would make them commensurate with benefits enjoyed by private and public employees with similar responsibilities.

Business As Usual

Many of the suggested changes in the transportation bureaucracy would reap substantial resources that can be applied to our transportation needs. Until major cost-saving measures are implemented, the citizens of Massachusetts should not be asked to bear the weight of an increase in the gas tax to fund an inefficient and wasteful transportation system. Raising taxes to bail out a failing system is not reform, but business as usual. The businesses and hardworking individual taxpayers of Massachusetts deserve better. Massachusetts cannot afford to reward bad behavior by raising the gas tax prematurely.

Our current economic downturn is stressing the budgets of businesses and the personal finances of every family. Most of us are being forced to make difficult decisions in order to trim expenses so we can keep our heads above water. For business owners, the livelihoods of many others as well as their own are often at stake. Painful, but necessary, decisions are being made. Before receiving additional revenues, the transportation system must demonstrate that it can make some of the hard choices we are all being forced to make. We want to see real reforms put in place that will end the culture of irresponsibility, mismanagement and overly generous giveaways that permeate our transportation bureaucracy. We firmly believe that this type for reform can and must be achieved now.

Taxation Without Representation

If you are concerned about the Governors proposal, voice your opinion! Simply click here and send your senator and representative a message – It’s that easy!

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The New England
Fuel Institute’s Legislative & Regulatory Action Center was
established in January, 2006 by then-CEO Jack Sullivan. The “NEFI
Action Center” mission is to provide constant, up-to-date information
on public policy, legislative and regulatory developments and
compliance issues that impact NEFI member companies and the industry
at-large. The Action Center, through its staff in Boston, MA and
Washington, DC, is working around the clock to defend the interests of
the industry nationwide and here in the Northeast.The Action Center provides NEFI members with the latest developments from Washington
and the industry through frequent legislative action alerts, regulatory alerts,
compliance bulletins and kits, seminars, webinars, and regular contributions
to NEFI’s Oil & Energy monthly magazine and NEON, NEFI’s weekly e-newsletter.
Both independently and through membership in national associations, coalitions
and alliances, the Action Center lobbies on legislative and regulatory issues
that affect small business fuel dealers and the industry as a whole. Its
national public policy agenda is set by the NEFI Government Affairs Committee
(click
here).