There has been much ado on National and State levels about temporarily abolishing the taxes on gasoline over the summer. House Speaker Nancy Pelosi (D-Calif.) dismissed the idea. For one thing, it won't work: it'll be like throwing gasoline on a fire, and here's why:
- In the summer of 2006, Albany (NY) County lifted the tax it imposes on a gallon of gas. The few cents a gallon lower price lasted about a week, if that. Those sneaky oil companies (who, by the way, lie thru their teeth when questioned by local TV reporters about the rack price) RAISED the price so that a gallon of gas in the neighboring county, WITH TAXES, was CHEAPER than a gallon of gas in Albany County! [m0re] This would no doubt happen again, PLUS it would give the greedy gas station owners MORE MONEY when the "tax relief" expired.
- Last night on PBS two gentlemen were discussing the gas tax holiday proposed by John McCain, Hillary Clinton and others. They brought up a point that I hadn't considered: the lower price of gas would create more of a demand that would put MORE of a strain on America's oil supply, further overburdening our struggling-to-keep-up refineries.
- Another source said that by lifting the tax, construction to improve highways and bridges across the USA would come to a halt, taking down 350-thousand jobs nationwide. That raodwork is funded by the taxes on gasoline!