Saturday, April 13, 2019

The Double Taxation Of Tolls

Tolls create a double taxation for Connecticut Taxpayers and businesses.  Toll taxes will only be passed on to consumers who are already paying toll taxes.
Here is an example.  A heating oil company must deliver oil to its customers.  For a heating oil company located in Meriden they must drive to the storage areas of New Haven to obtain their heating oil wholesale.  The drive to New Haven will entail them driving on I-91 and possibly I-95 depending on what exit they use to pick up the oil.  The tolls round trip for this may range from $4 to $8 depending upon time of day and what the state will actually charge for the tolls.  If this company must pick up heating oil on an average of 500 times per year this will increase their costs by $2000 to $4000 per year.  The heating oil in some cases will have to be transferred to other trucks and then sent out for delivery.  Based on scheduling and the needs of its customers the heating oil company will then route its truck or trucks to deliver their product.  Tolls because of their locations will be encountered by the heating oil company delivering to their customers.  Based on the number of deliveries this now adds an additional $2000 to their costs yearly depending upon time of day and what the state will actually charge for the tolls.  Taking a high end figure the heating oil company now has an additional $6000 in new costs yearly in the form of the toll taxes that have been implemented.
The heating oil company also must add an additional sales tax to the cost of their deliveries which is 6.35% that is passed to their customers due to this new tax.  The costs of tolls adds an additional five cents per gallon to the price of the heating oil.  Also the state has passed a "green tax" of roughly ten cents a gallon to heating oil to penalize them for supposedly being a non clean fuel.
The customer comes home from work from his or her job.  Their commute from Meriden to Milford now costs them an additional $20 a week or $80 per month due to the toll tax they must now pay.  They have received the bill for their heating oil delivery of 200 gallons.  Last month before the tolls and new taxes on heating oil they paid $2 a gallon or $400 for 200 gallons.  This delivery cost them $457.31, 200 gallons at $2.15 per gallon/$430 for the heating oil plus $27.31 for state sales tax on the bill.  Because of the supply and demand for heating oil the prices will fluctuate.  The customer now must come up with an additional $57.31 per month for the heating oil.  They also must come up with an additional $80 per month for the costs of the tolls.  The customer will not be getting a raise this year either due to the additional state taxes that the business they work for has to pay.
The customer must now cut costs a minimum of $137.31 per month due to the increased costs of tolls and heating oil.  However the costs at the grocery have increased dramatically also due to the new toll tax as all shipments to Connecticut have gone up with some trucking companies refusing to deliver to Connecticut due to its high taxes and tolls and also some trucking companies in the state have gone out of business since they can not make a profit here any more due to the high tolls and taxes.
The customer must now figure out a way to cut back to pay what they estimate is the additional 25% more they are paying at the grocery stores weekly for their food.  The customer figures now they have to come up with an additional $400 a month more between the toll tax and higher costs for all consumer goods they must purchase to live here in Connecticut.  They have no alternative but to eliminate their 401K contributions at work.  They have no alternative to lower their thermostats in their houses to try to save on heating oil.  They no longer spend any money on any form of entertainment or eating out.
After a year of tolls and increased prices Connecticut's economy is in a massive recession with huge budget deficits since toll revenues are not coming in at what was estimated and most non discretionary consumer spending has stopped thus lowering state sales tax revenue.  The Connecticut Democrat Party thus decides to raise tolls even higher and all other taxes even higher to make up for the shortfalls.  By the way the rest of New England is experiencing economic expansion and prosperity at this same time due to its lower taxes.
The economic example that I have described will become economic reality if toll taxes are passed.  Tolls are a form of double taxation. I urge you to contact your State Senators and State Representatives to express your concerns and opposition to tolls in Connecticut.  No tolls are needed and will damage even more a damaged state economy.  Enough is enough.

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