Hillary Clinton and John McCain have proposed as a solution to the $4 a gallon gas problem that we have a gas tax holiday this summer.  Since the idea was proposed by Clinton and McCain some of the leading economic and environmental experts have weighed in on the plan and have universally said that it is a bad idea.  On average, the average American would save a mere $25.  Most analysts surveyed judged the gas tax holiday proposal to be a silly, superfluous, or outright pandering idea.  Jerry Taylor of the Cato Institute said ”what would happen more likely than not, gas taxes would be cut, but pump prices wouldn’t go down, service stations would just continue charging what they are charging. “  The plan has also been described by most experts as an  expensive and environmentally unsound policy.  When the Clinton campaign was asked to give the name of  a single expert that supports their plan…….no response.  Max Schultz, a senior fellow at the Manhattan Institute said “I think it is close to political pandering,……….It is bad policy and political gimmickry. If you want to deliver relief to folks you have to do more than just this little holiday from the gas tax. You have to address what is driving the price of crude oil, even problems with the weak dollar. You aren’t going to win any points doing that, however. But you will get points if you get up and say let’s suspend the gas tax for a few months… I never have seen the wisdom of playing gimmicks games of the tax code.”  Actually, sounds like Obama did his homework when he called this one for what it is…..Clinton and McCain decided to tell people what they wanted to hear as a quick fix even though it’s bad policy in the long run.  Sen. Clinton offered as an justification for her proposal that even though it does not help the average American much, truckers will benefit tremendously. Clinton’s alleged beneficiary aka The American Trucking Association’s response…..thanks but no thanks. 

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.

Instead of jumping on McCain’s bandwagon of quick fix, Sen. Obama came out and said that this is a bad idea and McCain and Clinton are only proposing it to gain quick political points.  It seems apparent from the near unanimous expert rejection of the proposal that a little research would have revealed to both Sens. McCain and Clinton that such a proposal was a bad idea.  The Department of Transportation says that such a gas tax holiday will cost Americans 300,000 jobs.  Remember that question regarding judgment?  Looks like Sen. Obama scores another point in the judgment department.