Gas Tax Repeal No Holiday

Battling a sluggish economy, near-collapse in the real estate sector, and steadily increasing inflation, consumers are looking for relief from what is widely forecast to be a summer of record high gas prices. But the “gas tax holiday” backed by Hillary Clinton and John McCain is a foolishly shortsighted response.

Aside from saving the American people next to nothing at the pump (well under three dollars for the average 15-gallon fill-up), repealing the tax would also increase vehicle usage without a corresponding bump in the revenue that maintains the road network those vehicles rely on.

High prices, while unpopular, are beginning to motivate the necessary and inevitable change away from unsustainable car-based transportation, as evidenced by a recent drop in gasoline demand. Repealing the gas tax, even temporarily, will undo these gains, and open the door for more wasteful fuel consumption in the future.

A far more sustainable solution would involve creating a tax benefit for non-automotive travel. This would further incentivize consumers to use alternatives, thus lowering overall demand, so that people without a non-driving option would further benefit from lowered prices.