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News Regional & State News Transportation Advisory Commission recommends removing tax cap on oil companies
Wednesday, 03 August 2011 06:51

Transportation Advisory Commission recommends removing tax cap on oil companies

Written by  Mary Wilson

(Harrisburg) -- Among the recommendations handed down by Governor Corbett’s Transportation Advisory Commission is removing the cap on taxes paid by oil companies on wholesale gas. The panel making the recommendations says if uncapping the tax does make the price of gas at the pump go up, by the time it’s completely implemented, the additional cost to drivers would be about $.20 a year. But, could the higher price of gas also be embedded into other products -- products that have to be flown and shipped and driven to the store where you buy them? Steve Chizmar, spokesman for PennDOT, says there’s no evidence to believe that will happen. The last time oil companies saw their taxes raised, Chizmar says the price of gas went down for the consumer. "What that really points to is there’s so many more factors playing a role in what people are actually paying for gas and other goods and services. You have to bring into account local competitiveness. you know what the person across the street charging. There’re just so many factors in the way goods and services are priced. The removal of the tax cap on oil companies, like most of the recommendations made by the advisory commission, needs lawmakers to turn it into legislation." To that end, the chairman of the House Transportation Committee says he’s waiting for the governor to "get out in front" and tell lawmakers which recommendations he’ll support.

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