
Panel Told Of Danger In Capping State Gas Tax
ALBANY — With the state Senate preparing to pass legislation next week capping the sales tax on gasoline, an influential assemblyman yesterday warned about “knee-jerk” responses to skyrocketing gas prices.
“Nothing could be worse than to move forward in a stampede for political expediency and come out with less than effective results for the consumers,” Assembly Energy Committee Chairman Paul Tonko (D-Schenectady) said, as he kicked off hearings on gas and home-heating fuel pricing.
During yesterday’s hearing, SUNY Albany economist Kajal Lahiri predicted that removing taxes will increase fuel consumption, which he said could lead to even higher gas prices.