Gas tax impact on businesses not easily discerned

March 22, 2011

Misty Sexton writes a nice letter ("Consumers can afford a 10-cent gas tax increase, but many businesses can't," March 17) stating several examples of increased operating expenses for business owners caused by a 10-cent a gasoline tax increase. I have no reason to believe her examples are not accurate. She does however, fail to point out how these increases negatively affect the businesses she gives as examples.

It may make the business less profitable, assuming the company does not pass the increase on, as most probably will (and thus have no effect on their bottom line), but just how profitable was it to begin with?

A $117,000 yearly increase in operating expenses seems like a lot, but what if the company makes a $2 million profit each year? I think we need more facts before we start implying a gas tax increase will put people out of business.

Larry Gonter, Baltimore

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