Wednesday, 30 April 2008
Gas Tax Holiday -- A Vacation from Common Sense
The debate in Washington and on the campaign trail continues to focus on the idea of "gas tax holiday." ASCE and other transportation and business organizations continue to oppose this short-sighted solution. Earlier this week Senator Hillary Clinton endorsed Senator John McCain's "gas tax holiday" proposal, though she called for a reimbursement of the federal Highway Trust Fund. The "gas tax holiday" concept received "2 Pinnochios" in a Washington Post article. Other media weighing in on the issue included the Huffington Post. Even with the reimbursement this is simply bad public policy. ASCE continues to communicate our position to members of congress.
According to the American Association of State Highway and Transportation Officials, suspending collection of the motor fuels tax during the high-mileage summer months would reduce the balance of the Highway Trust Fund by $9 billion, and at best, save motorists an average of only $28.
Proposals holding the Highway Trust Fund harmless by reimbursing the Trust Fund with general fund revenues are poor public policy because they would establish a precedent for suspending collections needed to finance highways, bridges and transit programs.
ASCE will continue to educate members of Congress and the media about negative effects of the "gas tax holiday" proposal.
UPDATE 5.01.08: Front Page of the Washington Post has story on growing number of people opposing the plan.