8 Reasons to Support a Gas Tax Holiday

In order to keep the content on my blog somewhat balanced, I wanted to make an effort to counter my recent entry, Top 10 Reasons a Gas Tax Holiday is a Bad Idea. I was trying to come up with a top 10 list of reasons to support the holiday, but there were only really 8 things I could come up with. However, without much support, and Memorial Day just around the corner, the idea of supporting a gas tax holiday seems moot. Nonetheless, I have composed the following list of 8 reasons to support it.

1. It Sounds Good
A federal “gas tax holiday,” it just sounds so nice. With record high temperatures, a weakening economy, and an increased cost of living, don’t we deserve an extra holiday this summer?

2. You’ll Save $30 Bucks
Some estimates actually say that the average American will save as much as $60-$100. However, no matter what the actual savings amount turns out to be, it is still free money.

3. Immediate Stimulus
In addition to the benefit of getting free money, it would also be immediate. Every time you pumped gas into your car you will get the discount. You will not have to wait months and months for a rebate check to arrive – instead you will get instant savings.

4. Everyone Benefits
Although not everyone would benefit equally from the gas tax holiday (people who use public transportation would not really benefit), the holiday is designed to give everyone who uses a car some relief.

5. Other Reduced Prices
Because of the increased gas prices the cost of other products is also being raised. In addition, some companies such as airlines or shipping stores are adding a fuel surcharge to their products. Hopefully the benefits of a gas tax holiday would pass down to those purchasing these other products as well.

6. Will Not Increase Costs
Many economists are arguing that the gas tax break would do nothing as it would increase demand and raise prices. However, supporters of the holiday claim that since fuel is traded on the world market the actual effects on demand would be negligible.

7. Revenue from Oil Companies
To make up for the loss of federal revenue some are hoping to raise taxes on the large oil corporations who are seeing billions in profits. This would mean that the federal government would not have to cut construction jobs.

8. Pressure on OPEC
In addition to taxes on the oil companies, another idea surrounding the gas tax holiday is to pressure OPEC to release more fuel and help lower the demand. Although it would help lower prices, this is probably more of a downside as it continues to encourage reliance on foreign oils.