EDITORIAL: Gas tax ‘holiday’ an election-year ploy

May 01, 2008 03:46 pm

— Be careful when digesting the information coming out of Albany with regard to a proposed gas tax “holiday.” It may not be as good as it seems.
Republicans in the New York Senate and Assembly say cutting the local, state and federal taxes on gasoline could save up to $10 per fill-up during their proposed “summer holiday” from gas taxes, according to the Associated Press.
The alleged savings would just be eaten up by suppliers who would certainly just jack up the price, despite the tax savings.
Gov. David Paterson, a Democrat who may just be playing the political game, did make the best point Wednesday: “This is something we could legislate, but not implement,” he said. He also said the state can’t afford the revenue loss if there no guaranteed cut in gas prices because he predicts state deficits of up to $20 billion over the next three years.
Until the federal government and the suppliers buy in, there’s no controlling the price.
This proposal is nothing more than an election-year ploy, aimed at making some politicians look good, so they can hold a press conference proclaiming their work in saving you money on gas. Gas is a hot commodity these days, obviously, so it’s a fruitful proposal for the politicians aiming to cut the tax.
They’ll look good, and we’ll be happy, but only until the suppliers cut into the proposed savings by raising the already high prices. The way we see it, the “gas tax holiday” could be passed, but it will be a short celebration.
Real savings will come when state and federal government work with the suppliers to keep the cost down. Does anyone see that happening any time soon?