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A Few Days of Cheaper Gas May Carry a Steep Price Tag for State

April 16th, 2008 by flanews

Despite one of the biggest budget shortfalls in state history, Governor Charlie Crist wants to lower taxes. Crist says a gas tax holiday would help Florida families, but as Whitney Ray tells us, a gas tax holiday in 2004 may have hurt more than it helped.

Gas prices are so high Whitney Hodges is hanging up her car keys.

Id rather catch the bus than put gas in my vehicle because its higher, said Hodges.
The price of a gallon of gas at a Tallahassee station is about $3.40. More than 30 cents of the cost is state tax. Governor Charlie Crist wants to reduce the states cut, for a little while.

I think reducing gas taxes is a good thing to do and if we can do it we should certainly try, said Crist.

Crist doesnt have a sponsor, doesnt know when the break would happen, or how much of a break there could be. Still drivers like the idea.

It helps a little bit in the long run and every little bit helps, Bo Bemis said while he filled up his tank.

In 2004 a similar plan was implemented, but it may have done more harm than good. People took advantage of the tax break and stocked up on gas, disrupting supply and demand. Some gas stations cheated and didnt lower prices as much as they should have. Despite those pit falls, the biggest issue this year may be the failing budget.

Its tougher in a year like this. I understand that. I appreciate that. Whats tougher on Tallahassee is tougher on Florida Families, said Crist.

In 2004 gas prices were lowered 8 cents a gallon. Families saved about two buck a tank and the state lost 60 million dollars. Tuesday Presidential Candidate Senator John McCain called for a summer long ban on federal gas taxes.

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