Economists cool to gas tax holiday
Economists are skeptical of Hillary Clinton and John McCain's plans for a federal gas tax holiday:
More than 200 economists, including four Nobel prize winners, signed a letter rejecting proposals by presidential candidates Hillary Clinton and John McCain to offer a summertime gas-tax holiday.McCain dismissed the criticism using class warfare:Columbia University economist Joseph Stiglitz, former Congressional Budget Office Director Alice Rivlin and 2007 Nobel winner Roger Myerson are among those who signed the letter calling proposals to temporarily lift the tax a bad idea. Another is Richard Schmalensee of the Massachusetts Institute of Technology, who was member of President George H.W. Bush's Council of Economic Advisers.
The moratorium would mostly benefit oil companies while increasing the federal budget deficit and reducing funding for the government highway maintenance trust fund, the economists said.
"I find people who are the wealthiest who are most dismissive of a plan to give low-income Americans a little holiday'' so they have ``a little more to give to their children and enjoy the summer a little more,'' McCain said today. "Thirty dollars means nothing to a lot of economists -- I understand that. It means a lot to some low-income Americans.''If the government weren't wasting so much money on other programs and worthless earmarks and other pork barrel projects, we wouldn't need a gas tax. We should be looking towards privatization of new road construction and expansion.
Also, if a federal gas tax holiday wouldn't apply in five states:
Even if the federal gas tax holiday was implemented, it would not apply (fully) to gasoline sold in four states. That's because California, Nevada, Oklahoma, and Tennessee each has a provision in the state's tax law which states that if the federal gas tax is lowered, that state's own gas tax will increase by some amount. This is theoretically designed to maintain transportation spending in the state.The idea is just pandering, Clinton and McCain should just let it go.
Comments
Jason
I read the Bloomberg report and two things about you post are without error the fact that if the government wasn't wasting our tax dollar on pork and stupidity the need for a tax on fuel would not be necessary and it is nothing more than pandering by two candidates that are desperate to be elected.
I think Obama is wrong about what it would save the average family because my wife and I fill up on average of 8 time a month each that's 16 fill-ups per month and at a savings of about 4.00 each that is about 32.00 per month or 100.00 approx. because of the nature of our business I realize we may use a little more fuel than most but in this economy that is 100.00 I can probably spend more wisely than can the government.
Another problem I have is the money is earmarked for the highway TRUST fund who is kidding who? Since when can anyone trust the government to do what they say they will do especially when it comes to spending our money But the main reason I support this suspension of the tax is because of the folks who oppose the suspension. I mean how can you not be for anything that "Sweetie it doesn't make me a bad person Franks" and "Nancy I want my own private jet Pelosi" are against?
Posted by: Don | May 6, 2008 03:29 PM
Don,
You are correct sir. If the government really cared about us the taxpaying drive your car in the snarl
public they would have already taken care of these tired old two lane roads that look like arteries to the heart that are blocked with plaque. If it were a heart with these types of arteries the patient would be dead. We have been promised road widenings and intersection fixes for years and we are still waiting. I know that there is some movement along Hwy 155 but what about our major artery of Hwy 42. If the government moves any slower on these projects our problems might be solved by five dollar a gallon gas prices.
The Doctor
Posted by: The Doctor | May 6, 2008 04:11 PM
Doctor,
You are right; Hwy 42 is the biggest problem as far as traffic in Henry County.
I have seen, while stuck in traffic on Hwy 42, an ambulance try to get to Henry Medical Center on a code 3 and couldn't because of traffic. How many people have to die before it is fixed. I have heard from a friend that several years ago a county commissioner died at the rail road tracks at Rock Quarry Rd because a train had the road blocked. The $8 million that was wasted at Nash Farm could have went a long way on fixing Hwy 42. It is a shame that Henry County was known as the "Mother of Counties", but it has become the red headed step child of Georgia. Mainly because Atlanta thinks we are a bunch of stupid country hicks on the southside. Oh,
wait a minute we paid $8million for a cow pasture and called it a battlefield, never mind.
Dark Knight
Posted by: Dark Knight | May 6, 2008 09:52 PM