The Obama campaign today released the following statement in response to Senator McCain's gas tax holiday "plan" to help By touting a gas tax holiday as part of his proposal for economic recovery in Virginia today, Senator McCain proved he was right when he said he doesn't understand the economy as well as he needs to. Rather than spurring the local economy, John McCain's proposal would cost the Commonwealth over $188 million in investment for local road and bridge priorities, and rather than creating new jobs, John McCain's proposal would cost Virginians 6,500 good paying jobs. It's an unusual approach to economic recovery, but it is the usual Washington approach of gimmicks and quick-fixes that has failed us for too long. That's not the change Virginia families are looking for or deserve.
Exactly right, as at least one respected Virginia Republican realized back in 2000 when another, less respected Republican, was promoting this silliness (article from the AP):
Republican George Allen is doing a retreat on his denunciation of the existing tax on gas. In an interview with the Richmond Times-Dispatch, the former governor said he favored eliminating the 4.3-cent tax. But after the state's senior elected Republican and key Allen backer, Sen. John Warner, joined two other senators in Washington to voice strong support for the tax on Thursday, Allen has scrambled to reposition himself on the issue. In a letter issued jointly by Warner, fellow Republican Sen. George V. Voinovich of Ohio and Sen. Max Baucus, D-Montana, the three said that states risk losing a source of federal revenue essential to building new roads and upgrading worn out and outdated ones.
Hmmmm...I wonder what John Warner thinks about this proposal now that his party's presidential nominee is making it. Here's what the American Association of State Highway and Transportation Officials thinks about it:
McCain's proposal would have devastating impacts upon the federal-aid highway and transit programs, sharply reducing funding available to states and jeopardizing hundreds of thousands of jobs nationwide. Such a move would be short-sighted and damaging to our nation's economy, while providing little relief to America's drivers. AASHTO estimates that for the average motorists, driving approximately 12,000 miles per year, the savings would amount to roughly $28, less than the cost of a half tank of gasoline.
Wow, now that's leadership right there. Thank you John McCain, you've proven beyond a doubt that you don't know the first thing about economics, but you sure know a lot about pandering to voters!
Exactly how many jobs is that proposal going to cost in coal-related, support, rail and port related jobs? My guess three times as many as the gas tax relief proposal.
In fact the railroad industry is actually exanding and increasing employment in large part to the increase in coal via rail transport.
I am not a supporter of gimmicks like the gas tax relief but also realize that fact that the State squanders about 18 cents a gallon in tax anyway. Maybe State government ought to analyze and audit itself for excessiveness and cut spending, something niether Party in Richmond seems to want to do.
Maybe we should all go the way of Henrico County and pay for our own roads and upkeep.
And what exactly will the alternative proposal cost Virginians in the long run. The windfall profit tax will result in the transfer of this directly to consumers and in the end addtional taxes on corporation as proposed will cost jobs as well. It would be interesting to know exactly the estimates.
So I am wondering why is it acceptable to feel some pain in pushing a clean , renewable energy policy but in no way should we experience any pain by having gas tax relief for the summer for truck drivers and the lower and middle class.