Tax Holiday

Clinton-McCain gas tax holiday slammed as bad idea

Keep gas Prices High
The Miami Herald
"As bad ideas go, it is hard to the top proposal to reduce federal gasoline taxes as a way to help drivers cope with the soaring feul costs. There is no doubt that the pain at the gas pump is real. Except for the few who drive bif rigs or are engaged in commercial transportation, howecer, the savings from a tax suspension would be minimal. Meanwhile, an artificial cut in prices pumps up demand, which is the real source of the crisis.
The tax holiday – giveaway, to call it by its real name – is a classic Washington palliative. It creates the illusion that the politicians are making the problem go away when, instead, they are actually making the problem worse. Giving drivers a cut of 18.4 cents on every gallon, or $2.74 for a 15-gallon fill up, might ease the pain momentarily. But it does nothing to cure the underlying problem, which consists of an addiction to cheap gasoline coupled with wasteful habits like driving gas-suzzlers instead of gas-savers."