New Gas Tax

Before the start of summer Republican presidential nominee John McCain and Democratic runner up Hillary Clinton tried to persuade congress to have a Memorial Day to Labor Day tax freeze, to help ease the burden on consumers at the gas pump. Lawmakers in Washington however were quick to point out that if such a tax freeze on fuel took place, it would mean $9 billion less that states would receive in federal money for highway maintainance and construction. Barack Obama has opposed this plan from the beginng, other Politian's of note who disagree with the tax freeze are Rep. James Oberstar, chairman of the House Transportation and Infrastructure Committee, and Rep. Peter DeFazio, chairman of the highway subcommittee. Representatives' Oberstar, and Defazio described to lawmakers that a tax freeze on gas for just three months would cost states from Vermont $30 million, and 1,000 jobs lost to California at $664 million, and 23,000 lost jobs. Sen. Hillary Clinton purposed a windfall tax on oil companies to make up the loss in tax revenue; Republicans however shot that one down. John McCain put forth the idea of getting the money from the general treasury, but just as with Sen. Clinton's idea, that has also died a quick death. If congress had just said no, that would have been one thing, but now they're talking about adding on an additional 10 cents tax on gas! Pressure for this new gas tax appears to have manifested from The Transportation Construction Coalition, a group of unions and industries. The Transportation Construction Coalition claims that the trust fund used to finance highway maintenance is in danger of running into a deficit, and could cost more than 485,000 jobs. Just three years ago the trust fund boosted a $10 billion surplus, and now economist estimate that the fund will finish 2009 at a $3 billion deficit. It seems a little strange to me that all this has suddenly come out, with the proposition of a gas tax freeze. I can't help but wonder if the trust fund that's used to pay for these road projects was in danger of going broke, why are we just now hearing about it? It's just a little too convient. If anything this is a perfect example of why it's not wise to ask your government for help. A simple request for relief at the gas pump has turned into a possible new tax hike.