By Charles Ferraro
State Rep., R-117
Charles Ferraro
As record inflation continues to rise, Connecticut families are already shouldering the burden of dozens of state taxes. Now, as recently announced by the Department of Revenue Services, Connecticut will raise its tax on diesel fuel by over 9 cents beginning on July 1.
This tax increase is due to a required annual adjustment set each year by multiplying the prior year’s average wholesale price by 8.1 percent. Total taxes on diesel will reach 49.2 cents per gallon. The increasing price of diesel drives up the cost of all goods and services we rely on each and every day. This tax increase drives home the importance of the Republican call for a special session to act on inflation relief by reducing over-taxation.
Another forthcoming tax residents should be aware of is the highway use tax set to go in effect Jan. 1. This will add another layer of taxation on goods in our state. While the goal is to incentivize electric vehicles and disincentivize out-of-state trucks from damaging our highways through transit, the proponents fail to recognize the inevitable financial collateral. There is no doubt that these new taxes and hikes to existing ones will enhance the burden on the truck operators themselves. But as the increases mount and costs rise even more, businesses will have no choice but to pass the cost onto consumers. These consumers are Connecticut families, those working to make ends meet in a state which has put them behind the fiscal eight-ball with damaging policies.
A common misconception in considering tax increases on diesel and truck usage is that corporations with large semi-trucks are the main targets and will stand alone in assuming its costs. Around Connecticut and nationwide, small businesses rely on diesel fuel to deliver goods to our local shops and provide other essential services like manufacturing, travel services and outdoor maintenance.
As ranking member on the Energy & Technology Committee, I have prioritized the push for sustainability and sensible energy policy with fiscal responsibility in mind. In fact, we were proud to make great strides in this past legislative session which position our state for a future of energy policy that increases energy reliability and lays a foundation for decades to come of environmentally conscious strategies.
That said, it is unreasonable to expect Connecticut residents to accept another increase to their cost of living when our state has proven to be among the most unaffordable in America. An increase to the tax on diesel and trucks is an increase to the cost of doing business, to the cost of making a living, and the cost of raising a family. Republicans in the legislature will continue to oppose these harmful tax increases and push for a more affordable Connecticut.
Please continue to reach out to me at Charles.Ferraro@housegop.ct.gov with your questions and concerns regarding state issues.