Gas tax break would cost even more
Chicago Sun-Times Editorial Board
May 5, 2008
At first glance, the gas tax break looks like a winner. Who couldn't use a few more bucks this summer, a little relief at the pump as gas prices soar?
Presidential contenders Sen. Hillary Clinton and Sen. John McCain want to suspend the federal gas tax for the summer months, while Sen. Barack Obama opposes the idea. Suspending the tax would shave 18.4 cents off every gallon of regular gas from Memorial Day to Labor Day.
On Friday, Clinton ratcheted up the pressure, calling on each member of Congress to say whether they are "with us or against us" on the gas tax break.
Are you getting the scent of election-year pandering yet?
The facts are simple: The tax relief won't save drivers much -- if any -- money.
It will increase dependence on foreign oil. And it will hurt our infrastructure and environment.
Oh, and it will likely put even more money into the coffers of Big Oil, as if they need more money.
Basic economics shows why any savings would dry up fast. If the price of gas were lowered, that would likely drive up demand, especially during the summer months. And the increase in demand, energy analysts say, would drive up gas prices, because refineries are already operating near capacity.
So much for help at the pump.
And so much for McCain's prediction of the "trickle-down" effect of lower gas prices leading to lower food prices.
Eliminating the gas tax for the summer would cost the U.S. government about $10 billion in money for roadway and transportation construction projects.
Clinton says she would make up for that shortfall by further taxing oil companies.
We'll believe that when we see it.
In the meantime, get ready for bumpier roads if the tax break gimmick becomes reality.
As citizens, we hear a steady drumbeat of how the nation must wean itself off foreign oil and decrease greenhouse gas emissions.
We're at a loss as to how driving up the demand for gas accomplishes either of these worthy goals.
New York City Mayor Michael Bloomberg, once a potential presidential candidate himself, had a blunt take on the gas tax break.
He called it "the dumbest thing I've heard in an awful long time."
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