April 28, 2008

Gas Tax Holiday

This is a senseless idea:

Hillary Rodham Clinton criticized Barack Obama on Monday for opposing proposals to suspend federal gas taxes this summer, a plan she and Republican John McCain have endorsed. Obama didn't take the bait. He ignored Clinton and focused on McCain.

...

Clinton said she would make up the lost revenue by imposing a "windfall profits tax" on oil companies.

"If we suspended it and made up the lost revenues, that's the best of both worlds," she said.

The federal revenue generated from the gas tax goes directly back into federal transportation programs that fund highway and mass transit infrastructure. It is foolish to take money out of that system to score political points. Furthermore, what's to prevent the oil companies from hiking their prices? Consumer demand for gasoline is inelastic in the short-term.

Even if she devised a way to funnel the recovered revenue back into federal highway program, Clinton's scheme would require a lot of effort and negotiation - good luck getting such a bill passed the obstructionist Republican minority, especially with their warm, fuzzy feelings for her.

However, these arguments ignore the greater issue at hand, which is funding our nation's infrastructure. Obama has called for investing in our greying infrastructure, while Clinton has been silent. Repealing the gas tax, even if only temporarily, will only encourage people to drive more at the expense of other, lower cost, environmental-friendlier, options.

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