A Bag Of Oranges and Gas Tax Posturing

by Steve Haner

The bag of mandarin oranges that was $4.99 last week was $5.99 this morning. Fruit trees aren’t getting raises – that is the impact of fuel prices, the cost to ship them to Virginia.

As I’m fuming and pushing my cart to the next inflated item, the phone pings to announce an email. Could relief for gas prices be on the way? is the teaser headline from Virginia Mercury, with its lead story this morning a straight-faced discussion of the truly comedic proposal yesterday by House Democrats. They offer Virginia car owners a one-time $50 payment ($100 for a two-car family) in lieu of actually lowering the fuel taxes, as Governor Glenn Youngkin has proposed.

Really? The exact same 50 bucks for somebody like me who drives 250 miles a month, at most, as for some commuter or small business delivery person driving 500 miles or even 1,000 a week. Likewise, they propose $50 for somebody who owns a car but usually bikes or uses the Metro. That’s a government handout, not tax policy.

In today’s ridiculous partisan environment, however, it is entirely possible to imagine a reversal. Had Youngkin first proposed a single cash payment, as in other states, Democrats would still have fled the special session to avoid voting on it, spent a week on Twitter deriding the idea and then proposed their own bill: a 90-day gas tax holiday!

Before you laugh that off, remember that this same amount, $50 per person or $100 per couple, is the difference between the state Senate’s version and the House’s version of a cash rebate for the 2021 state surplus. That $50 per capita is helping to hold up the entire two-year budget. It is a great idea here, Democrats, but a terrible idea there – the same paltry, pathetic, forgettable $50?

These are not serious people. They are not serious about their obligation and duties. Plenty on both sides need another semester of Econ 101 (those that actually ever took it). We have Government by Tweet and press release. The feed was filled all day yesterday with Democrat House members touting their “brilliant” idea of a $50 payment in lieu of lower taxes.

Neither this nor the Governor’s proposal for a 90-day partial tax suspension will likely lower the cost of that bag of mandarins, or all the other thousands of price increases driven by higher transportation costs. The problem is the underlying price of that fuel, pre-tax, which has been consciously and relentlessly driven higher by America’s Green Party (these are not Democrats anymore).

As I listened to NPR while driving home from the store, an advocate was happily crowing that the higher gas prices are just one more incentive pushing Americans away from fossil fuels. Not one Virginia Green Party member (not Democrats, remember) is actually sorry about that and that’s why they won’t support anything that will lower the pump price a penny. It is why the Green Party house organ, Virginia Mercury, offers them cover by claiming the idea is “relief for gas prices.” Uh, that is what it is not.

For most of my career as a political hack and then lobbyist, transportation has been a key issue, from the 1986 special session on transportation to my time with the shipyard. It got me started writing here on Bacon’s Rebellion. I have been a consistent supporter of using the fuel tax (a user fee) as the key funding mechanism, and you can search in vain to find any complaints from me about it going up. I reported on the gas tax hikes imposed by Governor Ralph Northam and raised some questions about the new highway user fee, but never opposed the bill.

Likewise, I’ve reported on Youngkin’s efforts to partially reverse that 2020 bill, and the House’s approval of related legislation, which failed in the Senate.  Reported on but not praised. Looking at the list of tax ideas still in play in legislation or the budget, that one is not of interest to me.

But the posturing on both sides of the aisle over the gas tax has sucked the air out of the room for serious discussion of tax policy. There are too many ideas on the table, splitting up the messaging and dividing the attention of voters (always limited anyway).

Getting back to the grocery store, week after week not having to pay sales tax there would also be of hugely greater benefit to most Virginians and even to me (15 cents off those mandarins!). But that’s not what we’re talking about, a mistake on the Governor’s part and an intentional act of distraction on the part of the Green Party.


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Comments

15 responses to “A Bag Of Oranges and Gas Tax Posturing”

  1. Dick Hall-Sizemore Avatar
    Dick Hall-Sizemore

    That is a good point about this back and forth over the gas tax sucking the air out of the room for a serious discussion over tax policy. At first, I thought the Democratic policy was just silly and they were copying what McEachin has proposed on the national level. I still think that, but also I suspect that this part of the political gamesmanship. The Democrats know that Youngkin’s gas tax holiday will not pass in the Senate. So, they are now daring the House Republicans to kill this idea.

    1. LarrytheG Avatar
      LarrytheG

      and meanwhile, Haner fumes!

      Most folks understand that between COVID and Ukraine that things are a bit crazy and as they say, if life gives you lemons, make lemonade.

      We’re crying about gas and fruit while people are dying in Ukraine….

      1. Nancy Naive Avatar
        Nancy Naive

        Get off my lawn, ya danged whippersnapper!

        1. LarrytheG Avatar
          LarrytheG

          man, when oranges go up in price, it’s the end of the world as we know it……… GRUMP!

          1. Nancy Naive Avatar
            Nancy Naive

            The Russians have delivery system to deliver his oranges…

          2. Stephen Haner Avatar
            Stephen Haner

            Right — being a Democrat, you just wait for the government to feed you oranges for free. And I got to express myself on Ukraine last night to a member of House Armed Services, and got that out of my system. But if you want….

          3. LarrytheG Avatar
            LarrytheG

            I actually believe in the free market, supply/demand, etc and I admit that the cost of fuel does affect a lot of products from lumber to oranges. We’ve seen this movie before under both Dem and GOP POTUS , neither of whom have much control over it. COVID screwed up the supply chains as well as drilling and processing for oil but the big thing about oil is that whatever we produce in the US, the prices of it is set by the world. We don’t forbid selling it to the highest bidder even at export.

            And citrus? Heck, every time there is a freeze in Florida we get whacked – even through they
            grow those things south of Florida where freezes don’t happen…often if at all but we won’t allow thei import so we can prop up our own farmers. Interesting how that works for crops but not oil.

          4. Nancy Naive Avatar
            Nancy Naive

            If you think the price of oranges is high, wait ’til you see the price of bread if the Ukraine doesn’t get to planting…

          5. Nancy Naive Avatar
            Nancy Naive

            If you think the price of oranges is high, wait ’til you see the price of bread if the Ukraine doesn’t get to planting…

  2. Nancy Naive Avatar
    Nancy Naive

    Well, it works like this, ya see:
    The average Virginian drives Y miles per year in a car that gets 23.7 miles to the gallon. At $.26 per gallon, he pays $0.26 x Y/23.7. Now suppose your car gets 31 MPG, then you are only paying $0.26 x Y/31 taxes (assuming you are an average driver, and they do), hence the only fair thing to do…

    Or, we just hit everybody for $50 and then call the $0.26 something other than a tax.

    Hey! Here’s an idea! We reduce the retail gas tax to $0 and raise the wholesale tax from $0.07 to $0.33 and pocket the $50!

    1. Stephen Haner Avatar
      Stephen Haner

      Many would fall for that, no question.

      1. Nancy Naive Avatar
        Nancy Naive

        They already have. That’s the HUF. $109.71 for EV. That’s 10,000 miles at 23.7 MPG at $0.26/gal tax.

        1. Stephen Haner Avatar
          Stephen Haner

          But EV drivers who buy no gas will get the 50 bucks from the Democrats, so no worries.

        2. energyNOW_Fan Avatar
          energyNOW_Fan

          I had to pay $45 HUF tax for a gasoline/hybrid SUV.

          1. Nancy Naive Avatar
            Nancy Naive

            My Impreza gets 31MPG EPA and they charged me ~$27 per year for 2 year re-up. If my “guesses” are right the HUF THEN

            MY HUF, $27, should be $0.26( 10,000/23.7 – 10,000/31) = 25.8. Close enuff.

            Just a finger in the air, but I’m guessing your EPA is around 40?

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