2008 Primaries, Views on News • May 12th, 2008

Good idea, gimmick…or both?

by Chris Lato

At first blush, a federal gas tax holiday this summer sounds like an awfully good idea as gas prices in Wisconsin edge toward a sickening $4 a gallon in some places. US Rep. Paul Ryan (R-Janesville) is on board, although not without his own twist on the issue – paying for the holiday by suspending earmarks. It’s the kind of tacked-on idea that can torpedo the whole endeavor, although Ryan deserves much credit for being a consistent conservative in going after how Washington conducts its budget business.

Hillary Clinton and John McCain like it, arguing taxpayers need a break this summer. Barack Obama says it’s a gimmick designed to pander. A politician - pandering? Shocking!

I will say I’m down for anything that lowers gas prices. The jury is still out on who would benefit, with a fair number of economists saying a gas tax holiday is not the way to go.

It is interesting to consider whether this is just a cheap election-year ploy, designed to get votes and nothing else. Consider the tax rebate checks, which are now in the mail or being direct-deposited nationwide. When Congress approved the checks in 2001, critics called it a gimmick. Seven years later, with a new round of checks going out, do those same critics still see things the same way? Is it a gimmick to put some tax money back in people’s pockets? I, for one, am looking forward to getting that $600.

Still, the underlying problem is that it feels like nothing is being done to address the long term issues that are contributing to the sky-high gas prices. In that sense, rebate checks and tax holidays ARE gimmicks – they sell a short-term solution to a long-term problem. It requires bravery, innovative thinking, and big action to get to the bottom of why we are here and how we can change course. The tax holidays and rebate checks grab headlines for their political supporters now – but what happens when the summer is over?

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