Giuliani Campaign Press Release - Romney Gas Tax Hike

ROMNEY HIKED GAS TAX BY TWO CENTS PER GALLON

Romney Effectively Hiked The Gas Tax On Motorists By Two Cents Per Gallon. "Gov. Romney's administration is whacking motorists with the equivalent of a 2-cent-a-gallon gas tax hike, thanks to a little-known fund that pays for cleaning spills and underground leaks at local filling stations. Gas wholesalers pay a fee into the fund for every 10,000 gallons they deliver to retail filling stations in Massachusetts. As of April 1, on the Romney crew's say-so, the fee went from $50 for every 10,000 gallons to . . . $250. That stunning fivefold increase looks particularly onerous when you break it down to the per-gallon cost: from a half-cent per gallon to 2 1-2 cents in one fell swoop." (Cosmo Macero, "Pump It Up! Goosing The Gas Tax With Mitt," Boston Herald, 4/11/03)

Gas Tax Was Increased To Cover Costs Of Closing Backlog Of Clean Up Cases Of Fuel Storage Tank Site Contamination, But Tax Actually Produced Surplus Of Over $40 Million A Year. "The increase generates about $60 million per year for a program to clean up contamination around underground fuel storage tanks, but since its inception has produced surpluses of more than $40 million a year above the actual cost of the program …Raised from half a cent to 2.5 cents per gallon in April 2003, ostensibly to pay for a backlog of cleanup claims, the fee is on top of the 21-cent-per-gallon state tax on gasoline." (Brian C. Mooney, "Taking Office While Remaining An Outsider," The Boston Globe, 6/29/07)

AND ROMNEY OPPOSED GAS TAX HOLIDAY

Romney Opposed Gas Tax Holiday. "But on the gas tax cut, one Republican is reluctant: Governor Mitt Romney has said that a state gas tax break could encourage more consumption." (Russell Nichols, "Bill Proposes Gas Tax Cut To Save 21 Cents A Gallon," The Boston Globe, 5/11/06)

Romney Called Tax Holiday "Additional Incentive" To Use Gas. "Last fall in Massachusetts, when prices started to spike, state Rep. Bradley Jones Jr., a Republican from North Reading, called for a three-month holiday from the state's gasoline tax. Gov. Mitt Romney initially dismissed the idea, calling it 'an additional incentive to use gasoline and energy.' He later amended his comment to say the proposal made no sense as a long-term solution." (Joan Vennochi, Op-Ed, "Real Relief On Gas Prices," The Boston Globe, 5/3/06)

Even His Own Lieutenant Governor Disagreed. "Setting herself at odds with Gov. Mitt Romney yesterday, Lt. Gov. Kerry Healey backed a proposal aimed at giving summer motorists a break at the gas pumps. Healey voiced support for a bill filed by Rep. Bradley Jones … to eliminate the state's 21-cent-per-gallon tax between Memorial Day and Labor Day, which she said would result in an 8 percent drop in gas prices. 'We know that working families and small businesses are struggling to meet the higher costs of energy right now,' Healey said, adding that the state would use up to $200 million from the 'rainy day' fund to cover the revenue loss. 'This is a thing that we can do to get some of the surplus money that the state now has back to the people of Massachusetts.'" (Kimberly Atkins, "Healey For Gas-Tax Cut," Boston Herald, 5/11/06)

ROMNEY WAS "FOR-AGAINST" INCREASING FEDERAL GAS TAX

In 2003, Romney Said He Was Open To Federal Gas Tax Hike. "In addition to refusing to endorse the president's tax cuts, the governor surprised several people by saying he is open to a federal increase in gas taxes." (Wayne Washington and Glen Johnson, "Romney Weighs In – Carefully – On Bush Tax Cut," The Boston Globe, 4/11/03)

But Later That Year, Romney Said He Opposed Federal Gas Tax Hike. "Romney is opposing a 5-cent hike in the federal gas tax to fund the transportation bill, while favoring issuance of bonds that will be repaid out of the Federal Highway Trust Fund." (Steve Marantz, "Gas-Tax Fight Fuels Showdown With Gov," Boston Herald, 12/21/03)

And Now In 2007 Romney Opposes Gas Tax Hike Because It Would Be "Politically Unacceptable." Romney: "Well, I think that would terrify everybody in the whole country. A gas tax of that nature, I think that's not something that's going to be politically acceptable to the American people." (CNBC's "Kudlow & Company," 2/7/07)