A Quick Word on the Gas Tax Holiday Idea
May 13th, 2008 . by economistmomOne of the early comments I received here was asking what I thought of the idea of a gas tax holiday, which some of the presidential candidates have proposed. Here is what I (and many other economists) think of it:
A friend of mine (and tax policy expert extraordinaire), Len Burman, has in public labeled the idea “stupid.” I want to be kinder and say it’s not stupid, when one considers the politics involved. My first reaction was to call it “clever,” but then I realized it’s really better labeled “desperate.” I guess that’s what the press means by the word “pandering”–it’s clever and desperate at the same time.
Pandering is all it was, and I found it disappointing that McCain would resort to such a tactic. Here’s a guy who makes a big deal about his opposition to earmarks and then he turns around and does this. The least he could have done was tell the American people how he planned to pay for it. I expected better of McCain, and if he wants to keep the votes of people who care about fiscal discipline, he’ll refrain from going down this path again.