Gas Tax Holiday Idea Stinks

Originally published at Brad's Tiny World. Please leave any comments there.

The proposed Gas Tax Holiday smells like it has been stuck up the ass of a politician for years and is only now being pulled out at election time. No matter how you try and sell the plan, the results still stink.

First there is nothing to prevent stations from simply offsetting the 18.4 cent discount by raising their prices. In fact most economists believe this will happen unless the holiday comes with a price freeze. I like that second part a lot better as a driver, than I do the Tax Holiday.

Secondly, if you figure out how much gas you use in a week the saving just don’t amount to squat. My wife and I burn about 20 gallons a week in the summer between the two of us, which is better than the average single driver who burns roughly 14 gallons. If you multiply the tax savings out over the twelve weeks we save as a family $44.16 while the average single driver will save $30.91. I know you are excited about that! Face it what can a single person or a family get for between $30 and $45. Amortized over 12 weeks you will hardly notice the difference.

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