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Published - Monday, April 21, 2008

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McCain plan a costly gas tax ‘holiday’


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The allure of the highest office in the land can make candidates say the darndest things.

Case in point: U.S. Sen. John McCain, who built his career as a deficit hawk — even though it was sometimes a lonely position. Now, as a presidential candidate, he has recently proposed giving consumers a gas tax “holiday” for the summer.
While this has obvious political appeal as gas prices continue their march toward $4 per gallon, it runs completely counter to common sense in light of a several-billion-dollar transportation fund deficit coupled with an infrastructure crisis that is looming in America.

This looming crisis is certainly not a state secret:

California Gov. Arnold Schwarzenegger, Pennsylvania Gov. Ed Rendell and New York Mayor Michael Bloomberg — a Republican, a Democrat and an Independent — have formed a not-for-profit organization called “Building America’s Future” designed to rally support for a renewed commitment to funding America’s infrastructure needs.

Announcing the coalition, Schwarzenegger stated, “America needs $1.6 trillion worth of infrastructure over the next five years, yet federal investment has been cut in half as a percent of gross domestic product since 1987. This is disastrous because without adequate infrastructure to quickly and safely move goods and people, our economy and our traffic will stop dead in its tracks.”

Then there’s this: A transportation report commissioned by Congress recently concluded that we have neglected our transportation needs so badly that we must increase the federal gas tax between 25 and 40 cents during the next five years and then index it to inflation just to get our transportation system back into a state of good repair. Members of the bipartisan commission included Wisconsin DOT Secretary Frank Busalacchi and Paul Weyrich, founder of the Heritage Foundation, along with CEOs of U.S. Express, Office Depot and other major companies.

Any way you look at it, candidate McCain’s proposal just doesn’t add up. In fact, the average driver could expect to save roughly $28 as a result of this proposal. That would be the most expensive $28 you have ever saved.

Under this proposal, the federal government would see an $8.5 billion loss in fuel tax receipts. The American Association of State Highway and Transportation Officials estimates that such a cut could result in the reduction of nearly 300,000 jobs. This does not even begin to calculate the effect on our economy, considering we are losing ground, even as I write, to other countries that are investing heavily in their entire transportation network in order to move goods and people more efficiently.

We would all like a break from high gas prices; they hurt us at the pump and they cost us everywhere else — in the price of goods we buy and trips we take, for example. There are many avenues that must be pursued in order to achieve the goal of affordable fuel. Taking a “holiday” from reality just isn’t one of them.

Craig Thompson is executive director of the Transportation Development Association of Wisconsin, a statewide alliance representing more than 400 transportation stakeholders.
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Twilite wrote on Apr 23, 2008 9:26 AM:

" "...they hurt us at the pump and they cost us everywhere else in the price of goods we buy and trips we take, for example." That means the tax cuts would save us more than $28.
Also, do you really think we're ever really going to balance any national budget anyway? The country is trillions of dollars in debt. I'd go for the cheaper gas. "

JS wrote on Apr 22, 2008 5:38 PM:

" Well I have nothing against tax cuts minded that cuts go with it. That means having a balanced budget. Although that does not mean if there is a deficit we should raise taxes. That means we should cut and tighten our belts. If there is any tax to cut for the summer the gas tax is not the one to cut. Cut something else but just not money that is actually needs for things that are important to everyone in this country. Our economy would suffer without that money as it goes towards roads. "

random annoying bozo wrote on Apr 21, 2008 7:46 PM:

" JS and blogger, my point is, everytime i read a 'news' story, it always seems that the crux is how we need to raise taxes. pick a subject, any subject, and that is governments response, raise more taxes. what never is uttered is maybe try reducing spending instead. granted some things don't seem like a lot, but i remember a notable quote from a Congressman whose name escapes me, it goes "a billion here and a billion there, and pretty soon it adds up to real money". maybe government needs to run it's affairs like a normal household does, if money starts getting tight, reduce some spending. and at the same time, maybe households should quit looking to government to solve all of their problems, i guess it cuts both ways. after all what have we got to lose, the 'tax everyone more' game plan sure isn't working, "

blogger wrote on Apr 21, 2008 6:57 PM:

" cont -This article wasnt about RAISING taxes - it was about cutting them in spite of needing to spend trillions to keep what we already have. Maybe the solution will be to do what we are doing Iraq -just put off funding for the future (ie borrow money from the Chinese and expect our children and grandchildren to pay the bill - if they can).Is this the new Republican idea of fiscal responsibility? "

blogger wrote on Apr 21, 2008 6:55 PM:

" RAB(ID) - sure, just cut out the unnecessary stuff like mass transit. While you are at it forget about those pesky bridges that need all the work, and what is the problem with a few more potholes? "

JS wrote on Apr 21, 2008 6:24 PM:

" "random annoying bozo" notice how I said we should cut all off that out by dedicating it to roads and bridges. Although I added to transit part as place like NYC need transit. Also all the money that goes to bike trails, walking paths, etc does not cost the trillions and would not even put a dent into the need to repair and replace inadequate infrastructure. I have no problem with cutting but cutting the gas tax is not a solution. Also check up on WisDOT's finances, they want to fund 20 billion in highways projects but have approximately 15 billion over the next 20 years. I agree raiding the fund is a scam by Doyle. Wisconsin needs a better leader and we need a constitutional amendment like Minnesota dedicating the gas tax 100% to roads and bridges. "

random annoying bozo wrote on Apr 21, 2008 4:13 PM:

" well call me stupid, but instead of raising taxes, has anyone ever thought of cutting spending? apparently not. how about cutting some spending out of the transportation budget. cut out the money for bike trails, walking paths, light rail and mass transit. since everyone seems to be harping about failng infrastructure, how about concentrating on that before spending money on all of the 'feel good' 'politically expedient' items. and as a side note, here in Wisconsin, wasn't it the governor who raided the transportation fund to give money to teachers? who knows how much is misappropriated out of transportation funds at ALL levels of government. (traffic circles)? "

correctanswer wrote on Apr 21, 2008 2:45 PM:

" BrainG- Infrastructure? That is as humorously blamed as furnaces were for our local school system funding shortage. 50% of private sector workers do not have employer contributed retirement programs. The remaining have 1/3-1/4 of what government employers contribute. Post early retirement health coverage is extinct out here. Run the numbers and the promised benfits current and impending funding shortages. Infrastructure my rear end! Craig Thompson and Lee have already started their drum beat against McCain. No surprise here. "

Rickey wrote on Apr 21, 2008 11:22 AM:

" If everyone spent Their "Stimulus" check at Wal-Mart ,China receiving that money could loan it back to US and We could stimulate the economy an extra time "

JS wrote on Apr 21, 2008 10:34 AM:

" This is one place where we should not be cutting taxes. Although a law should be in place to dedicate 100% of the federal gas tax to roads, bridges, and transit. The percentage that goes to transit should be the percentage that rides transit nationwide. "mk" you complain how everyone is a socialist but yet offer NO solutions to the problem. The American Society of Civil Engineers estimates we will need trillions to fix our infrastructure in this country. That includes roads, bridges, water, sewer, power, etc. In addition the interstate system is coming to the age where the pavement and bridges are going to need to be replaced. This is definitely a tax that is useful as how much money we put into it is how much we get out. This is not like health care or education where we sometimes do not see results even with extra money. "

blogger wrote on Apr 21, 2008 9:43 AM:

" cont - In any event either we let the infrasturcture deteriorate (?Republican solution) or pay for it - neither way will be free. "

blogger wrote on Apr 21, 2008 9:42 AM:

" So mk, what suggestions do you and the "less tax is more" crowd suggest as a way to finance the issues outlined in the article? Upkeep of things like bridges, highways, etc are typically paid for from -among other things -what amounts to user tax - gasoline sales tax. I suppose that you can look at another way, that with all those Americans traveling this summer and spending along the way (and being taxed in the meantime) that the $$$ will come from there. "

mk wrote on Apr 21, 2008 9:09 AM:

" The ideals of socialism has failed and will continue to fail in every country that has tried it. You might say you believe in democracy but when everything you believe in hinges on govenment interaction (i.e. national healthcare) you are embracing the beliefs of socialism. When Uncle Sam begins to oversee everything of dire importance to society from gas prices, to health care, and to home loan mortgages you are no longer living in a free society you are now apart of a socialist society. "

mk wrote on Apr 21, 2008 9:01 AM:

" Take a moment to think. If you cut the gas tax it will reduce the price of a gallon of gas by nearly 20 cents. 20 cents doesn't seem like alot however it just may be enough to convince millions of Americans to travel this summer and spend some money. Higher gas prices= more people staying home and saving their money. Our economy has become almost entirely commerical. How then would people staying home because of gas prices help our economy? You must spend money in order to make money. People will not spend more money in our economy if Uncle Sam continues to take more of what we earn. "

mk wrote on Apr 21, 2008 8:55 AM:

" Yeah raising taxes will solve all our problems! Why is it that when problems arise Democrats right away think that throwing money around will solve everything. Democrats you are in for a rude awaking when November rolls around. Most Americans (who by the way are not polled) don't want this country to become the new Socialist Russia of the 21st century. Those of you who champion the likes of Obama and Clinton forget the message of a truly great Democrat President Kennedy who once said, "Ask not what your country can do for you ask what you can do for your country". "

grant wrote on Apr 21, 2008 8:30 AM:

" Cutting taxes in a time of war will result in devalued dollar , higher prices, larger debt only to bring a recession "

blogger wrote on Apr 21, 2008 7:05 AM:

" I suppose the next election "proposal" will be to privatize the DOT. The $1.6 TRILLION mentioned in the article is being spent already, unfortunately not on the US infrastructure but on the Iraqi infrastructure (destroying it). "

rickey wrote on Apr 21, 2008 6:43 AM:

" I would be the opposite of McSame , I believe in an additional tax on gas to fund wind and solar . GM will come out with the VOLT in 3 years and the Arabs can keep their oil and wars.We are paying for it now in war cost and inflation . Yes this would be a SIN tax. "

The Moderate wrote on Apr 21, 2008 5:27 AM:

" "A transportation report commissioned by Congress recently concluded that we have neglected our transportation needs so badly that we must increase the federal gas tax between 25 and 40 cents during the next five years and then index it to inflation just to get our transportation system back into a state of good repair."
So we have been giving them our money for years and this is the result? And NOW they need even more of our money! Take the money away from from them for awile and let's see if that helps them prioritze better in the future.
I think it is an excellent idea. "

BrianGSmith wrote on Apr 21, 2008 4:49 AM:

" Upon close examination most of what McSame proclaims is ludicrous and out of touch. Gas tax holyday puffery aside McCain has flip flopped on torture and tax cuts, immigration and earmarks. He's lucky too much superfluous attention is given....nightly.... to bowling and Bosnia. The Networks want the perception that the race for the White House is "close" to capitalize on viewers and profits when in fact there is no race....Obama will landslide McCain....so would Hillary. 81% of Americans say we're doing it all wrong and McCain represents the same course those 81% hate. This will be illuminated when Obama squares up against McCain one on one. "


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