The Facts Behind The Gas Tax Holiday

So this whole gas tax issue has been popular lately; since
John McCain and Hillary Clinton both stated that removing the tax on gasoline
and other fuels would be something that they would do, and something that they
believe would be good for Americans; while Barack Obama opposed the idea.

I’m not going to argue whether I believe John McCain, Barack
Obama, or Hillary Clinton is correct in their stance and their beliefs on the
issue. What I am going to address is what exactly all of these tax payer
dollars in fuel tax revenue are supposed to be going to:

You may have seen the word hypothecation used in reference
to the gas tax; what that means is that the revenues from the motor fuel tax
are supposed to go directly towards the infrastructure used by motor vehicles,
such as roads, bridges and highways; as well as to help with the infrastructure
for the fuels themselves.

Many people’s main argument against both John McCain’s and
Hillary Clinton’s idea to relieve the American people of this motor fuel tax
for the summer has been that this money is indeed going towards the repair and
upkeep of our roads, bridges and highways; and why would we not want better and
safer roads, bridges and highways.

Yet just last summer we had two different bridges collapse
right here in the United States; including the absolutely devastating Minneapolis
I-35W Bridge in Minneapolis, Minnesota; which sadly cost the lives of 13
innocent Americans and hurt at least 60 more. A horrible and unnecessary travesty,
that undoubtedly could have and should have been prevented.

Several independent research institutions have also pointed
out several other bridges in need of repair; as well as vast stretches of other
infrastructure that is in need of upkeep. So where is all of this tax money
going if not on this very necessary infrastructure maintenance?

In fiscal year 2005, nearly 36 Billion Dollars in revenue
from the Motor Fuel Tax was received by state and local governments across the
United States. An additional 18.4 cents per gallon in Federal Tax is also
currently charged; which is also the tax that the three Presidential candidates
and their supporters are debating over. That is a lot of money that is supposed
to be used to keep Americans safe.

The 18.4 cents per gallon Federal tax, if voided for the
summer as John McCain and Hillary Clinton wish to do, would “cost” the
government 10 Billion dollars. What “cost” actually means in this case is that
the American people would be able to keep 10 Billion of their hard earned
dollars over the summer, while the government would theoretically have 10
Billion less tax dollars to waste.

The argument of those against the tax holiday is, as I
stated above, that this summer tax holiday is going to “cost” the government 10
Billion dollars, which would otherwise be going towards the upkeep of our nation’s

Yet from our recent history, as well as simply keeping our
eyes open as we drive on, ride on, and walk along our roads, we can see that
our infrastructure is in terrible shape. From this we must come to the
conclusion that the Billions of dollars in taxes that are supposed to be going
towards our nation’s infrastructure are actually being wasted. Which is not a surprise;
the government wastes the vast majority of our tax dollars.

The other argument against the gas tax holiday is that it is
not going to reduce prices at the pump at all. Those greedy oil companies are
simply going to add another 18.4 cents per gallon to their bottom and top lines!

That argument is simply ignorance. Why? Because the Motor
Fuel Tax is added onto the price of gas set by the oil companies, it has no
impact on the price that fuel companies charge for their fuel. It is an added
tax of 18.4 cents on every gallon of fuel sold in the United States.

That doesn’t mean that the price of your gasoline will not
continue to rise over the summer, as it does every summer. That is simply due
to the increased demand for the product during the summer months. The tax being
there or not being there is not at all relevant.

If the tax was there, then the price for gasoline over the
summer would be the oil company’s price plus an added 18.4 cents extra in tax.
If the tax was not there, then the price of the gasoline would be 18.4 cents

Hopefully that clears up the issue for everyone that was confused
about it, and for those unsure of whether your candidate’s stance is
intelligent or not: Simply look at the facts and come to your own conclusion.