From Our friends at The Save Jersey Blog:
By Joe Sinagra | The Save Jersey Blog
Mark Zandi, chief economist at Moody’s
Analytics, estimates that U.S. consumers could find an extra $100
billion in their wallets this year.
Dudley, president of the Federal Reserve Bank of New York, says the
plunge in gas prices will translate largely into spending rather than
savings since the greatest benefit will go to lower-income families.
Those families, which often live paycheck to paycheck, “have a higher tendency to spend any additional real income.”
Falling gas prices will free up
billions of dollars for consumers to spend next year, with the middle
class seeing most of the benefits.
One study estimates that for every 1-cent drop in the retail price of gasoline for a year, American consumers save $1.2 billion.
Fuel savings could amount to nearly
$1,100 a year saved for the average U.S. family should petroleum stays
at current levels. That’s a huge savings for many families that spend
all they earn each month and who haven’t seen their paychecks rise very
much since the beginning of the Great Recession.
The price drop in oil could be the biggest economy booster since the recession began in 2008.
Americans spent $370 billion on
gasoline last year. With lower prices at the pump, a 60 cents a gallon
savings from a year ago, we may see the effective equivalent of cutting
taxes in the U.S. by somewhere between $100 billion and $125 billion.
Democrats in New Jersey want to increase the gas tax
and take away the little bit of breathing room many are currently
enjoying. Should gas prices head back up in the future, higher gas
prices (with the added tax) would be devastating creating a worse
economy slump than what we had previously.
Why any of our legislators elected to
represent their constituents, who are just climbing out of a pit, want
to punish them even further is beyond me. It’s no different than
stepping on taxpayers’ fingers just as they are pulling themselves out
of the abyss.
makes no sense to cripple an economy for the sake of a few pennies. The
added revenue would help the state’s coffers initially, but it would do
nothing for the taxpayers, and like any other tax it would never be
enough to meet the states expectations other than looking to increase it
further down the road. More businesses and families will move away and,
in the long run, our revenues problems will increase, no decrease.
It is never about the taxpayers, and
always about taking in more to make up for the mismanagement of funds
that were already there.
As always, in Trenton the only way to
solve a problem is take the easy way out by raising taxes rather than
figure out a way to get the job done without draining the pockets of its
It has been a long winding road for many, and to leave them stranded with no help in sight is just plain laziness.
If the trend continues, there won’t be
anyone left to keep the state solvent, and those that are left could
wind up at the bottom of the La Brea tar pits.
Tell our representatives the gas tax increase is a NO!