Reducing the sales tax on gasoline when you’re trying to reduce dependence on crude oil “is not exactly a terribly smart policy,” Mayor Bloomberg declared yesterday.
The mayor said the city wouldn’t opt in if the state cuts its portion of the sales tax because such a move would cost it $50 million.
“A small reduction in the tax is going to hurt the city, and it’s probably not going to reduce the pain very much for everybody,” Bloomberg said on his weekly WABC radio show.
A $3 gallon of gas here includes about 68 cents in federal, state and city taxes. Lawmakers have agreed to cap the state’s 4 percent sales tax to the first $2 of the selling price of gas, and they say they’ll allow individual counties to do the same.
Gov. Pataki hasn’t said if he’ll go along. Bloomberg argued the move doesn’t make much sense, especially since it’s not clear the savings will reach consumers.
“Reducing taxes when you’re trying to end energy dependence on foreign cartels is not exactly a terribly smart policy,” he said.
NEW YORK POST GAS WATCH
NYC $3.46
LI $3.49
NJ $3.49