The Tennessee Republicans Sending Mixed Messages On Gas Tax

By Kleinheider Posted on June 4, 2008 at 12:43 pm

The Tennessee GOP thinks it is bad to endorse a candidate that believes that a gas tax holiday is unnecessary:

“Gov. Bredesen and Chairman Sasser have endorsed a candidate who believes Americans don’t need a tax break at the gas pump and who believes the best way to deal with a troubled economy is a massive tax hike,” Hobbs said. “They have endorsed a candidate who knows the price of arugula at Whole Foods Market but criticizes rural Americans for ‘clinging’ to God and their Second Amendment rights. They have endorsed for president a candidate who is willing to meet unconditionally with the terrorist leader of Iran but refuses to meet with Gen. David Petreaus, the leader of America’s troops in Iraq, and who believes the best way to defeat our enemy is to run from them.

What party members and the public to imply about the TNGOP’s feelings for Senator Bob Corker after reading this?

Senator Corker, you will remember, vehemently opposes the idea of a gas tax holiday just as Obama does.

McCain, for his part, fired back at Corker for his declaration that the plan was pandering during an appearance at the Ryman on Monday.

Is it not odd that the state party would implicitly back the nominee’s play on a position  so publicly in conflict with a member of the Tennessee Republican Congressional delegation? What is the TNGOP position on the gas tax, pro or con?

Could this be a bit of veiled payback, a covert GOP civil war of words, for calling out the TNGOP on the Michelle Obama video?

Or was the line perhaps designed to get back in the good graces of a nominee who no longer wishes to play referee as he did earlier this year over certain press releases the state party was putting out?

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Tags: gas tax, McCain, Obama, TNGOP  

Tennessee Obligated To Hike Taxes On Gas To Offset Any Cuts Federals Make

By Kleinheider Posted on April 21, 2008 at 11:32 am

Ben Cunningham has made an important discovery. Even if John McCain’s idea for a reduction in the gas tax becomes a reality, Tennesseans won’t see any relief at the pump. Tennessee Code Annotated stipulates that if the federal taxes are ever decreased on gasoline that Tennessee will keep the tax rate status quo and pick up the collection duty:

[I]f the federal government reduces or eliminates any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title of the federal highway trust fund, the existing state tax imposed on the sale and/or use of such products shall be adjusted so as to maintain the amount of funding for the Tennessee department of transportation generated by the federal tax. The adjustment in the state tax shall become effective simultaneously with the reduction in the federal tax. The department of revenue is directed to collect such taxes and allocate such taxes in their entirety, less the appropriate cost of administration, to the state highway trust fund for use by the department of transportation. If the federal goverment elects to increase any or all taxes imposed by title 26 of the United States Code and allocated by chapter 98 of that title to the federal highway trust fund after it has reduced or eliminated such taxes, the state tax on the sale and/or use of such products is reduced equal to the amount of the increase by the federal government. No amounts of revenue received pursuant to the provisions of this section shall be pledged specifically to the payment of debt service on any state bond or note.

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Tags: annotated code, fedgov, gas tax, highway funds, State of Tennessee