As gas prices soar in Madison, state legislators from across the state continue to fight over what action should be taken to help Wisconsin consumers.
Gov. Jim Doyle has proposed a tax on big oil companies, based on the amount of gas they sell, including a provision that the companies could not pass the burden onto consumers. Republican representatives have met the tax with huge opposition.
Although Democrats claim the increase will not be felt by the average Wisconsinite, Mike Prentiss, a spokesman for Senate Minority Leader Scott Fitzgerald, R-Juneau, said: “It’s going to cost every single person in Wisconsin more money to fill up their car and go to work, take their kid to soccer practice and to go buy groceries. It’s one of the countless tax increases that the Democrats have put in this budget, rather than make tough spending decisions.”
Democrats defended the idea of a tax on big oil, but some are questioning the ability to enforce the provision that keeps the consumer for paying for the increase. Assembly Minority Leader Spencer Black, D-Madison, said: “I think a profit tax on oil companies is a good idea, but I favor strong enforcement mechanisms, including criminal penalties, if it is passed on.”
As consumers pay record highs for gas, big oil is bringing in record profits. According to a press release from state Sen. David Hansen, D-Green Bay, Exxon-Mobil reported $9.3 billion in profits, setting a new quarterly record. These staggering figures are part of the reason Democrats are pushing for the tax, which would bring some of the profit back to Wisconsin.
Students with cars on campus are feeling the burden of skyrocketing prices too, but UW-Madison sophomore Tyler Sellers is not complaining about his bills. “I don’t understand the fluctuation so much, but in comparison to European countries, our gas prices are exponentially lower. People don’t realize it is more of a fair price than it could be,” Sellers said.
As Doyle’s budget goes to the legislature, Republicans have made it clear that the big oil tax will be met with opposition. “We do not support this tax increase, and we will not support this tax increase,” Prentiss said.
