Would Axing the Tax Spell Relief at the Pump?
Politicians are talking about dropping the federal gas tax to ease the pain at the pump for drivers during the summer but not everyone is excited about the plan.
Every time you buy a gallon of gas the federal government gets a cut to fund maintenance on highways to the tune of about 38-billion dollars a year. If congress axes the tax you would only save about 18 cents a gallon.
Hillary Clinton and John McCain want the federal government to lift the federal gas tax from Memorial Day through Labor Day. They say it would stimulate the economy and save consumers money.
For an average car with a 13 gallon tank, the gas tax cut of 18.4 cents per gallon would add up to about $2.35 per tank. It would leave the federal government with a 10–billion dollar gap in funding.
Not everyone is buying into the idea. Barack Obama is against the plan, he says it would do little to help drivers and wouldn't address any long–term issues with energy costs.
Economists agree. They say the only real way to lower prices is to up supply, or decrease demand. However, many drivers agree won't be happening anytime soon.
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