The Gas Tax Debate

On general principle, I am opposed to a gas tax holiday. The federal gas tax is comparatively small at 18.4 cents compared the gas price increases we have seen - such as the 9.5 cent increase in average gas prices over the past week. At $4 a gallon on a 10 gallon or $40 fill-up, the savings are only $1.84.

My concerns over the tax holiday are two-fold. First, they deplete needed money from the federal highway maintenance fund but also the higher gas prices are having a positive effect on behavior. People are driving less, finding other means of transportation, car pooling more and buying more fuel efficient vehicles. Saving 18 cents a gallon isn't going to adjust behavior because the savings are so minimal. People will save exponentially more by adjusting their behavior than suspending the draft tax.

Even if a family decides to drive from Pennsylvania to Florida and average 20 mpg, they will only save $18.40 on the 2,000 mile round trip. If that family drove a car that instead averaged 30 mpg, they would save $133.

The loss of highway maintenance funds is a real concern. However, Hillary Clinton's plan has addressed that in some respects by making the difference in windfall taxes on oil companies. The only concern will be how to enforce oil companies from making up the lost money at the pump by punishing consumers more.

McCain's plan is reckless pandering. Obama's non-plan is tone deaf. Hillary's plan provides is pandering but less reckless and also achieves the added benefit of assigning blame. When oil companies are posting record profits and rewarding executives with massive salaries and bonuses, consumers don't need to look too far to find out where the problem lies.

Still it is a short term solution that achieves little. Congress needs to become more aggressive in providing incentives for people who buy cars that are environmental cleaner and more fuel efficient. They also need a long term plan to provide relief for truckers and delivery drivers via the tax code and providing loans to upgrade to more efficient and cleaner diesel engines.