Friday, March 13, 2009

SB 1001 - A bill for home heating fuel tax

A few days ago the WRAs David Krechevsky wrote about a proposed tax on home heating fuel.

I hadn’t yet looked at the bill, but had been particularly concerned about it raising taxes on those least able to afford it.

Then today, Robert Devylder Jr. emailed me about SB 1001 saying:

Tim,

This bill is considered a "gate-way" bill, meaning it would be the first tax in Connecticut on heating oil. This could result in the adding of taxes in the future.

We have many residents in this town and state that can barely afford to heat their own homes. This bill will add to the seasonal burden placed on families that could use the money elsewhere. It is suggested in the bill presentation that families will see an increase of $40 per year, but that is based on only using 800 gallons. Many homes are not insulated enough and can easilly burn more than that.

Also included would be farmers using oil to heat a greenhouse. Farms like those in town currently burn over 100,000 gallons a year. That equals over $5000 per year in tax and money taken from the possible expansion, and an increase in production costs passed on to consumers. Farmers also would be hurt by trying to compete with growers from out of state that do not get taxed.

Thank you.

Robert F. DeVylder Jr.


Having read a bit more about this bill, I’m starting to understand it. The taxes generated are intended to help those most in need. But this tax is also as regressive as a tax could be because it’s also being levied on those most in need. It seems rather counterproductive to me.

Tim White

2 comments:

Anonymous said...

Everyone should band together and push our represetitives to vote against this bill. Not only will this open the door to future taxes on a commodity that a majority of New England, Connecticut, and Cheshire residents and voters rely on, but those that are already struggling from last years high prices and the F&S fiasco will be impacted more.

Please voice your concerns to our state reps or Senator Eileen M. Daily, D-Westbrook at Daily@senatedems.ct.gov She is the chairperson of the finance, revenue and bonding committee.

Daily@senatedems.ct.gov

Anonymous said...

The state has been spending as if the bubble would never burst and now those in our state government would rather take more from the overburdened taxpayers than reduce the bloated size of government and services, many of which don't realy serve anyone other than the e staff. Instead of turning over every rock to try to figure out how the citizens of Ct can be taxed more, our representatives should finally do their job and bring state spending into line with reality.

As for taxing heating oil, they are already doing if with the gross revenue tax. For gasoline and diesel these fuels, these are taxed by the federal government, and the state has both a gas tax and on top of it they impose a the gross revenue tax on top of the gas tax.

Our outrageous taxes are the major reasons businesses are not only not coming to CT, but are leaving.