Follow below the fold for a State by State breakdown of the Jobs and Federal Highway Funds lost during this 15 week "Gas Tax Holiday" proposed by John McCain and Hillary Clinton.
State | Jobs | Federal Highway Funds |
North Carolina | 7,071 Jobs | $203 Million |
Indiana | 6,390 Jobs | $183 Million |
Oregon | 2,881 Jobs | $82 Million |
Kentucky | 4,298 Jobs | $123 Million |
Montana | 2,348 Jobs | $67 Million |
South Dakato | 1,623 Jobs | $46 Million |
West Virginia | 2,691 Jobs | $77 Million |
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America | 310,750 Jobs | $8.9 Billion |
John McCain and Hillary Clinton have suggested suspending Federal Taxes on all Gasoline/Diesel sold between Memorial Day (5/26) and Labor Day (9/1) this year. According to this study by the American Road & Transportation Builders Association, this "Gas Tax Holiday" will lower tax revenue for infrastructure by roughly $9 billion and potentially cost 300,000 highway construction jobs. The highway trust fund that the gas tax finances provides money to states and local governments to pay for road and bridge construction, repair and maintenance.
To speak out against this bad idea, 150 economists have written a letter opposing the gas tax holiday.
An Open Statement Opposing Proposals for a Gas Tax Holiday
In recent weeks, there have been proposals in Congress and by some presidential candidates to suspend the gas tax for the summer. As economists who study issues of energy policy, taxation, public finance, and budgeting, we write to indicate our opposition to this policy. Put simply, suspending the federal tax on gasoline this summer is a bad idea and we oppose it.
There are several reasons for this opposition. First, research shows that waiving the gas tax would generate major profits for oil companies rather than significantly lowering prices for consumers. Second, it would encourage people to keep buying costly imported oil and do nothing to encourage conservation. Third, a tax holiday would provide very little relief to families feeling squeezed. Fourth, the gas tax suspension would threaten to increase the already record deficit in the coming year and reduce the amount of money going into the highway trust fund that maintains our infrastructure.
Signers of this letter are Democrats, Republicans and Independents. This is not a partisan issue. It is a matter of good public policy.
Henry Aaron, Brookings Insitution
Gilbert Metcalf, Tufts University
Click For Full List
Here is the estimate of the State By State breakdown of the effects of the "Gas Tax Holiday" issued by the American Road & Transportation Builders Association
I have written a simple javascript on-line calculator to make it easy for anyone to see just how much they would stand to save during this so called "Holiday". With Indiana and North Carolina voting in a few days, everyone should take the time to send this link to anyone you know living in those states.
click to activate
The Obama Campaign has posted a link to my calculator on His website:
http://my.barackobama.com/...