Topic: Senator pitches tax-free gas accounts

[Pandora]

Workers would be able to divert a portion of their paychecks into an untaxed account that can be used to pay for gas and other fuels under new legislation set to be introduced in the Senate this week.

The legislation, authored by Sen. Mark Begich (D-Alaska), is aimed at lessening the burden of high gas prices on consumers. The bill comes as lawmakers on both sides of the aisle are scrambling to do something about gas prices, which are nearing $4 a gallon.

Begich, in a short interview with The Hill Tuesday, said he modeled the legislation on medical savings accounts, which allow the public to set aside a certain portion of money before taxes for medical expenses.

“You get to put aside pre-tax dollars and the result is you get to buy your fuel with pre-tax dollars,” Begich said.

“On average, let’s assume people have a tax rate of 20 percent, which is probably average for an individual. At $4 a gallon, you’re going to save 80 cents right off the bat.”

Begich said he is working to gain co-sponsors for the bill, which he will introduce Wednesday or Thursday.

The legislation would sunset after two years in order to give lawmakers time to pass energy legislation that begins to diversify the country’s energy portfolio, Begich said.

The bills comes as Republicans are set to consider legislation this week that would expand domestic oil-and-gas drilling. Democrats, meanwhile, are hoping to secure a vote in both chambers on a proposal to eliminate billions of dollars in tax breaks for the oil industry.

Begich, a drill-state Democrat, blasted proposals to cut the tax breaks.

“If people think by rolling back subsidies, you’re going to lower the price of gas, it’s a total disconnect from reality,” he said. “These ideas that they’re kicking around are nice discussion points, but they’re not going to do anything. We’ve got to get some immediate solutions on the table.”

Begich is one of seven Democrats who voted against a provision to cut oil-industry subsidies in February.
Comments (40)

H/T Billy Beck, whose title, "Their Majesties' Gracious Dispensations" rather nails this obnoxious proposal for what it is:  another attempt by Ruling Class to "manage" us, our money and our lives.

Why not just cut the Fed gas tax?

Right.

[charlesoakwood]

Not another bureaucracy!  ELIMINATE THE TAX

[Glock32]

I'm sure it would work like Flexible Spending Accounts too, where anything left in it at the end of the year is histoire. And exactly, why not just cut the fuel tax? They could give that the same 2 year sunset provision. How much you want to bet this "pre-tax income" would be paired with a new gas tax, resulting in either a zero sum game or probably even more tax burden than the prior arrangement.

It's also another element of their plan to render ever citizen dependent on government. Dependent for welfare, for food stamps, for unemployment, for Medicaid, for "fuel savings accounts", blah blah blah. Jefferson wrote something about "evinces a design...".

[John Florida]

Not another bureaucracy!  ELIMINATE THE TAX

 God forbid they keep it simple.

[Libertas]

Not another bureaucracy!  ELIMINATE THE TAX

 God forbid they keep it simple.

If they idea comes from a DemonRat you can be sure of only two things - It will only raise not lower taxes and it will raise not lower bureaucracies (and thus accrue more power to the Ruling Class, which we all know is controlled by DemonRats.

This idea should die a very quick death.

[Sectionhand]

Begich's father Rudy was lost with Hale Boggs . I wish he'd het lost too . 

[Predator Don]

Fine...If this idiotic idea happens, I'll set aside all my income for gas.

[Libertas]

Fine...If this idiotic idea happens, I'll set aside all my income for gas.

That would be net income, as in tax shelter!