McCain is at it again. He is planning to resurrect the absurd "gas tax holiday" that he proposed back in March, which was so completely and unequivocally excoriated by every notable economist and commentator who could be reached for comment those many weeks ago.
As a refresher, here are my earlier posts on how ineffectual, wrong-headed and intellectually dishonest the whole proposition is. Barack Obama has routinely spoken out and called this idea out for the shameless pandering that it is.
Here's the word out on McCain today:
John McCain is planning to resurrect his call for a national gas tax holiday, which became a staple of his stump speech in late April and early May. A McCain aide told CNN's Dana Bash on Monday that the Arizona senator planned to plug the gas tax holiday in public statements throughout the day.Most economists have estimated that a gas tax holiday would save Americans nothing at the pump, because retailers would simply raise their prices to compensate. Even if we took McCain at his word that it would save some money, it would only save the average consumer $25-30!
Along with Barack Obama, many economists largely dismissed the notion of a gas tax holiday as a political ruse that would do little to lower prices, but McCain has repeatedly said he does not believe the proposal would be a panacea for America's energy woes.
Instead, McCain argued, low-income families could save some extra cash to pay for their children's school supplies this fall, or perhaps treat themselves to a nice dinner.
Great, by that logic, how about a $25 gift card to Office Depot (you know, for the school supplies) or McDonald's (for the "nice dinner" that $25 can buy a family of four)?
At least that way we could waste the same amount of money giving out worthless freebies to people without depleting the state infrastructure renewal funds that are funded by the federal gas tax.
Update: A commenter points out:
A while back, the Seattle Post-Intelligencer ran a front page article detailing the impact of this proposal on Washington state. The prognosis is very dire indeed. Among their findings:-The gas tax holiday would save the typical Washington driver $28 this year but cost the state about $126 million in lost highway money.
-Most of the $126 million in question has already been spent, with the agreement that the federal government would pay it back or it is money that has already been committed to projects.
-More than 4,300 highway-related jobs would be jeopardized, according to a recent report.
Sen. Patty Murray, D-Wash., is chairwoman of the Senate Transportation Appropriations subcommittee. She doesn't support a federal gas tax suspension.
"She has a firsthand look at what's going on with our transportation systems, our roads and our bridges, and from her perspective, this is bad idea," said her spokeswoman, Alex Glass.
Indeed, it is very difficult to see how a proposal that might save consumers roughly $30.00 at the cost of 4,300 working class jobs is anything other than myopic. But this proposal is not designed to help working class Americans - it is designed to help get government down to bathtub size.
Alex Glass Continues; "The gas tax funds the Highway Trust Fund, and there are a number of critical infrastructure needs -- roads and bridges across the country -- that need to be maintained and repaired," she said. "We just can't afford to have crumbling infrastructure."
The amount of delayed maintenance here in Washington state is already past critical. Two of Seattle's main arterials, the Alaskan Way Viaduct and the 520 floating bridge, are both at the end of their life spans. On the east side if the state, many highways are in disrepair, highways that are critically needed to move freight from farm to market.
Local Republicans are eager to defund our infrastructure.
State Rep. Doug Ericksen, R-Ferndale, said suspending the federal gas tax could work but only if it can be done by cutting other programs.
"If they can eliminate the federal gas tax until Labor Day and still be able to reprioritize their budgeting and cover the cost of our current projects, I think it's a great idea," he said.
All part of the great Republican tax dodge shell game we have played for the past 25 years.
Fortunately, Democratic leaders in Olympia are speaking out;
State Sen. Mary Margaret Haugen, chairwoman of the Transportation Committee, said the tax holiday "is just the wrong way to go."
"Everybody is suffering under the gas prices," the Camano Island Democrat said. "It's had a huge impact, so I'm not unsympathetic, but the roads they drive on and the condition they are in have to be addressed."
Haugen said she would seek to tax the oil companies instead or replace the tax with something else, but said the idea is a nonstarter because President Bush would not sign it.
"All you'd do is lose the revenue," she said.
The "gas tax holiday" does nothing to help average American. Here in Washington, it would cost 4,300 hard working Americans their jobs.
Don't fall for it.
Original article here;
http://seattlepi.nwsource.com/transportation/361912_gastax06.html
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