Gas Tax Holiday

The founding fathers setup our political system to essentially protect ourselves from ourselves. This is demonstrated in the electoral system, where the President is not directly elected through the popular vote, but instead is elected by the United States Electoral College. This was designed so because in the infant years of our country the population was rather un-educated; the same concept is evident in how the legislative system is designed to act slowly.

In the past I have argued about how this system should be changed, because Americans have changed. Americans are more educated and more capable of making wise decisions regarding their lives and who governs their country. I have said we should reform the system, do away with the electoral system and base the results of the Presidential election strictly off the popular vote.

Now that I have seen the wide support for the proposed gas tax holiday by John McCain and Hillary Clinton I am re-thinking this opinion. Doing away with the tax is a ridiculous idea and the idea is primarily designed to attract voters to their own prospective camps. I hoped that Americans could see through this obvious ploy and not be swayed by it, I guess I thought too much.

Don't believe me? Think the gas tax holiday is a good idea? Tired of paying too much at the pumps? Well having a gas tax holiday won't make driving any cheaper. The gas tax currently funds road construction and maintenance, as well as traffic enforcement programs on highways. Doing away with those taxes would mean there would be no funds to fix roads and quickly the number of potholes would reach critical mass.
A supporter to the plan might say: "Wait! Clinton's proposal is that the oil companies would start paying the tax themselves so we wouldn't lose the funds for our roads!"
What is there to stop the oil companies to raise from just raising prices and passing the tax back to the consumer at the pumps?
The same person might say: "Well, they could pass legislation stopping the gas companies from raising prices."
Sounds like a good theory; if it worked. Getting that kind of legislation through Congress would be rough. Given the oil companies stranglehold on our elected officials getting them to lower their profits is a dark prospect indeed.
Furthermore if legislation requiring the oil companies to take over payments of the road funds, what kind of enforcement is there to keep them honest? Any enforcement would require additional funds and probably lots of time in the courts.
Don't believe me still? Here is what leading economists have to say:

Robert Shapiro, formerly the undersecretary of commerce in the Clinton administration and the author of "Futurecast." An independent voice with ties to the former first lady, however, did not give the expected results.
"Stated as clearly as I can," he wrote, "it's utterly misguided both environmentally and economically. Environmentally, it does actual harm, since it reduces the price of producing greenhouse gases. And economically it's trivial or worse -- by reducing the price of driving it encourages more of it, thereby increasing demand for gasoline, which inevitably pushes the price back up - the consumer gains nothing, and the oil companies and OPEC collect the extra bucks instead of the government."

"Even the American Trucking Association, the group the Clinton camp says is most favorable to it's idea, offers a tepid thanks but no thanks. From the group's spokesperson:
ATA appreciates the effort and supports the proposals. But we do have concerns that any fuel tax suspension proposal could damage the already ailing Highway Trust Fund. To the extent that McCain and Snowe's proposals use general revenue funds to offset the hit to the trust fund, that concern is addressed. ATA did not ask for this legislation. And we believe it is only a very short term answer that does not do anything to address the longer term issue of rising fuel prices. ATA recognizes that rising fuel costs have a disproportionate impact on small trucking companies where even a small savings can be the difference in their staying in business." (Huffington Post)


Americans, don't be swayed by the golden cow that is being put before you and rationally think about what is going on.