Tuesday, April 25, 2006

A campaign algebra problem

State Treasurer Judy Baar Topinka suggested the state suspend the sales tax on gasoline when the price exceeds $2.50 per gallon. So if the price of gas hits $3.50 a gallon, the state would waive the sales tax on a dollar each gallon. According to the article, she couldn't estimate how much money motorists would save.

OK, let's estimate. The state tax is 5 percent. Current prices are, what, three dollars a gallon. So, save 5 percent of 50 cents. That's a savings of 2.5 cents per gallon, times 10 gallons in my Toyota, which equals a savings of 25 cents per fill-up.

Thank you, Judy.

4 comments:

Bill Baar 7:52 AM  

She should talk instead on the 52 cent a gallon tariff on ethanol.

Not a winner with the Ag folks maybe but you'll see a well balanced analysis by the Iowa Farm Beurau in the link.

Anonymous,  2:16 PM  

Judy talked about saving about 3 cents a gallon... I heard her say it. There is no algebra problem... maybe you have a listening problem....

teacherman 5:40 PM  

Hey, that's no way to talk to a deaf person! I was simply referencing a Sun-Times article, which clearly states, Topinka couldn't estimate how much money motorists would save or how this plan would affect the revenue collected by government. In the short piece, she's quoted as saying, "I think we have to provide some relief for our public because it is really, really a very serious problem." Did she really say this, Mike? Again, I didn't hear her, but if 3 cents a gallon is a relief from really, really a very serious problem, then I say thanks for all the relief!

Anonymous,  2:45 PM  

Hey ap - that's $.30 - not $.25 per fill up.

GET IT RIGHT!

That nickel could mean the difference between 25 Swedish Fish and 30.

(Do they still sell Swedish Fish? And do they still cost $.01?)

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