Thursday, August 11, 2005

Sask: Gas tax protest picking up steam

Venerable talk show host John Gormley had one of his snap polls this morning and 60 per cent of callers wanted gas tax relief.

And yes, this poll is 100 per cent scientific with no measurable margin of error. (!)

Sign our petition here calling on the feds to give us all a break at the pumps.


John Murney said...

I have a serious question for you David. If the province rolls back the gas tax, won't local gas merchants use the opportunity to raise the price anyhow? Inquiring minds want to know!

David MacLean said...

Great question John. They could jump into that room vacated by the their own peril, because someone else will undercut them by a penny and then it's a race to the lowest price.

I refer you to Alberta. As a rule of thumb, their prices are usually 6 cents lower than ours -- which is exactly the difference between our provincial tax (15 cents) and theirs (9 cents).

It's interesting because the Alberta government uses the same justification for not repealing their insurance tax (3 per cent on all car insurance policies). And, it is the same rationale that Ralph Goodale used to justify not cutting gas taxes today.

According to gas price watchers, the difference between Canadian gas prices and American ones is pretty much the difference in taxation.

John Murney said...

Very interesting.
Thanks David!

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