2008 Woodie Awards
Proposal may help consumers, economy
Aanston Frazier
Issue date: 4/23/08 Section: Editorials
Last week, Republican presidential candidate John McCain urged Congress to pass a bill that would eliminate the federal tax on gasoline this summer from Memorial Day to Labor Day. This proposal would be an excellent move in order to relieve some of the burden of gasoline prices consumers borne. It also may have an affect on our staggering economy.
Gasoline prices, as every one of us has noticed, have risen dramatically going well above $3 a gallon. Gas prices are expected to continue to rise this summer, due to the increased demand for gasoline that occurs during the summer months. This rise in price will increase the percentage of income that Americans will have to reserve for gasoline.
Current federal taxes on gasoline are 18.4 cents a gallon for gasoline and 24.4 cents for diesel. McCain's proposal would lower the cost of a gallon of gasoline by close to this amount. While it would still keep gasoline above $3 a gallon, the lower cost would provide some benefit.
The tax collected on gasoline normally is used for road and highway maintenance. A permanent reduction of this tax would consequently have a negative effect on our roads and highways. However, only eliminating this tax during this summer would not have as great of an effect on roads, while providing benefits in other areas.
Because gasoline is necessary in most of our daily lives, we still consume nearly the same amount of gasoline as the price goes up. So, as the cost goes up, there is a lower percentage of our income that is spent on other items.
McCain's proposal would temporarily free up some of that money to be spent in other areas of the economy.
It is almost certain that we are heading into a recession, if we are not in one already. Freeing up income to be spent in other areas of the economy, besides gasoline, could possibly provide some benefit. Would it stop a recession? Of course not. But it still would likely benefit the economy.
McCain's proposal is an excellent proposal for both consumers and the economy as a whole. Hopefully Congress considers this proposal as a means of temporarily relieving the burden of high gas prices. And hopefully others states will follow suit and propose legislation to temporarily eliminate the state gas tax for the upcoming summer.
- Aanston Frazier, a former Marine Corps intelligence analyst, is a junior economics and political science major and a Mirror columnist.
Gasoline prices, as every one of us has noticed, have risen dramatically going well above $3 a gallon. Gas prices are expected to continue to rise this summer, due to the increased demand for gasoline that occurs during the summer months. This rise in price will increase the percentage of income that Americans will have to reserve for gasoline.
Current federal taxes on gasoline are 18.4 cents a gallon for gasoline and 24.4 cents for diesel. McCain's proposal would lower the cost of a gallon of gasoline by close to this amount. While it would still keep gasoline above $3 a gallon, the lower cost would provide some benefit.
The tax collected on gasoline normally is used for road and highway maintenance. A permanent reduction of this tax would consequently have a negative effect on our roads and highways. However, only eliminating this tax during this summer would not have as great of an effect on roads, while providing benefits in other areas.
Because gasoline is necessary in most of our daily lives, we still consume nearly the same amount of gasoline as the price goes up. So, as the cost goes up, there is a lower percentage of our income that is spent on other items.
McCain's proposal would temporarily free up some of that money to be spent in other areas of the economy.
It is almost certain that we are heading into a recession, if we are not in one already. Freeing up income to be spent in other areas of the economy, besides gasoline, could possibly provide some benefit. Would it stop a recession? Of course not. But it still would likely benefit the economy.
McCain's proposal is an excellent proposal for both consumers and the economy as a whole. Hopefully Congress considers this proposal as a means of temporarily relieving the burden of high gas prices. And hopefully others states will follow suit and propose legislation to temporarily eliminate the state gas tax for the upcoming summer.
- Aanston Frazier, a former Marine Corps intelligence analyst, is a junior economics and political science major and a Mirror columnist.
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