Beebe: Yes to severance tax hike, no to gasoline tax cut

by John Lyon: Gov. Mike Beebe reiterated his support for increasing the state's severance tax on natural gas Friday but said lowering the tax motorists pay at the pump for gasoline is "not in the cards." . . . Beebe said. "We're actually looking to see what increase would be fair and appropriate based upon the surrounding states. If you want to fuss at me for being supportive of increasing the severance tax, I'll plead guilty to that."The caller said energy companies would pass any severance tax increase on to consumers. He accused Beebe of advocating a philosophy of "tax and spend, tax and spend."

. . . another caller to Beebe's radio show asked if it would be feasible to give motorists a break by lowering the state's gasoline tax.Beebe said the state Highway and Transportation Department has identified about $19 billion in needs over the next 10 years, but revenue from the gas tax over that period is projected to be only about $5 billion."I wish ... I could tell you that I could give you some relief by lowering the gas tax," the governor said. "That's not in the cards. The gas tax is really not even sufficient to be able to maintain and do what we need to do on highways."Arkansas' gasoline tax is comparable to that of neighboring states, Beebe said. . . . [Source] ARRA: As noted before Beebe was elected, he has never met a tax that he didn't like. He would not have lowered the State's sales tax on food if he had not been forced to create a campaign promise to offset his opponent's campaign pledge and if the state's revenue surplus created by excessive taxes had not been so enormous. Have you seen him proposing to eliminate the remaining portion of the state's food tax?

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Tags: Arkansas, food tax, gasoline tax, Governor, increased taxes, Mike Beebe, severance tax, taxes