High gas means less tax

According to the Department of Energy, individuals, families, governments and businesses consume about 1.5 billion gallons of petroleum products to heat, travel and eat in a year. At the same consumption year to year, a $1 per gallon increase over last year means individuals have $1 a gallon less in spending money to buy goods and services that the state has an opportunity to get in sales tax and income taxes.

For businesses that heat with oil or truck into and out of their facilities, the state will see $1 a gallon expensed instead of reported and taxed as income, presumably causing a big decrease in business income taxes paid to the general fund.

The state has to be experiencing increases in the cost of operating vehicles and plow trucks or heating buildings all over this state.

Simple math says that $1.5 billion will not be taxed through sales or income taxes to the state government. I am thinking the Legislature may have a bigger gap than it thinks it has now when April 15, tax day, comes around.

I am not an economist and these numbers are rounded off, but I think the reader will get the idea.

John Cashwell

Bangor