Deval Patrick revs up gas tax hike
Deval Patrick revs up gas tax hike
Would link increase to inflation
Hidden deep inside Gov. Deval Patrick’s new plan is a fine-print provision linking the gas tax rate to yearly inflation-fueled hikes in the consumer price index, guaranteeing Bay State drivers will keep getting hosed at the pump long after he leaves the Corner Office.
Patrick announced yesterday he wants to boost the gas tax by a whopping 19 cents, upping the state tax from 23.5 to 42.5 cents and bringing $600 million into state coffers. But in a little-noticed provision tucked inside his proposal, the gas tax would automatically grow each year by the same percentage as the rise in consumer prices.
“I can’t wait to see how this plays when we get into double-digit inflation,” said Barbara Anderson of Citizens for Limited Taxation. “The public response to this should be, ‘No, not until we get the reforms.’ ”
The $787 billion federal stimulus is expected to goose inflation by as much 2.5 percent a year, even if the economy bounces back, said Mark Zandy of Moody’s economy.com.
“There is some concern that it will accelerate in 2011 and 2012,” said Zandy, meaning state taxpayers could be hit by a double whammy – ever-growing hikes in both consumer prices and the gas tax.
Patrick said yesterday that his proposed gas tax increase would avert an unpopular toll hike, but he intends to leave all tollbooths on the Mass Pike in place – in sharp contrast to his earlier pledge to take down those west of Route 128. He’s also reportedly seeking to put tolls on the border.
Patrick yesterday argued the current increase would cost the average resident only $8 a month, or the cost of a cup of coffee a week.
“It’s clear to me that there is political risk in these proposals,” Patrick said. “Our long-term job growth and economic security . . . depend on both major reforms and new revenue now.”
Both Speaker Robert DeLeo and Senate President Therese Murray declined to address the consumer price link, saying they needed to study it more. But one Republican lawmaker predicted an ever-expanding gas tax would be dead on arrival in the Legislature.
“I don’t think this will have a lot of support,” said Sen. Richard Tisei (R-Wakefield) “It’s a pretty insatiable appetite as far as looking at sources of revenue.”
Christy Mihos, who is considering challenging Patrick again in 2010, said he sold off his Cape Cod-based gas stations to Hess earlier this month because the state was too hostile to small businesses.
“I think it’s going to be very difficult for Deval Patrick to be re-elected after this,” Mihos said. “It just makes it very difficult for small businesses to flourish in the commonwealth.”
Article URL: http://www.bostonherald.com/news/politics/view.bg?articleid=1153598
