Connecticut House Bill HB05189

Connecticut 2014 Regular Session

• Introduced: 2/18/14
• Refer: 2/18/14

Caption

An Act Establishing A Special Low Price For Gasoline During The Month Of August, 2014.

Impact

If passed, this bill would modify existing state tax statutes pertaining to petroleum and motor vehicle fuel taxation. While it aims to provide immediate economic relief to consumers through reduced gasoline prices, the bill establishes that any revenue loss due to the tax reductions will be counterbalanced by a corresponding reduction in the earned income tax credit. This revenue offset mechanism is crucial for maintaining state budgetary balance while enacting temporary tax relief.

Summary

House Bill 05189, introduced by Representative O'Dea, proposes a temporary reduction in gasoline prices for the month of August 2014. The bill aims to achieve this by lowering the petroleum gross earnings tax and the motor vehicle fuels tax by thirteen cents per gallon. The primary objective of this legislation is to position Connecticut's gasoline prices as the most competitive in the region, thereby alleviating financial pressure on local consumers during the summer months when gasoline consumption typically rises.

Contention

Notable points of contention surrounding HB 05189 include the implications of the tax reductions on state revenue and its effect on funding for public services. Critics may question the viability of offsetting the revenue loss through reduced credits, arguing that such measures could disproportionately impact low-income families who rely on earned income tax credits. Additionally, discussions might arise regarding the effectiveness of temporary tax reduction strategies versus more comprehensive long-term policies aimed at addressing fuel prices sustainably.