Wednesday, April 16, 2008

Tax Increase in September?

My fellow Virginia blogger Sean Hackbarth interviewed RNC Victory Chair Carly Fiorina yesterday and asked her a question for me. I was curious about John McCain's proposed gas tax holiday, which would mean lifting the 18.4-cent/gallon federal tax on gasoline and the 24.4 cent tax on diesel fuel during Memorial Day to Labor Day, when the taxes would be restored. Sen. McCain has repeatedly argued that letting the Bush tax cuts expire as scheduled in 2010 would be tantamount to a tax increase. That's his argument for supporting making the cuts permanent, despite initially voting against them. I wondered whether the same logic applied to gas taxes. In other words, would Sen. McCain's gas tax holiday really mean a whopping tax increase on the day after Labor Day? Ms. Fiorina responded that the price of oil had hit an all-time high, that the price of fuel is driving up the price of food, and that Sen. McCain’s gas tax holiday would address "an issue affecting people right now". In other words, she didn't answer my question.

1 comment:

Riley said...

Not to mention that the "gas tax" is actually the "highway user fee" and is one of the few, if not only, sources of revenue that is raised and spent for a particular purpose by actual users and then placed in a trust fund that is firewalled (unlike Soc. Sec.) This is truly the most libertarian funding source the fed. gov't currently employs. The more you use the roads, the more you pay (since you have to purchase that much more fuel.) You don't use them, you don't pay.

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