Suspending gas tax would cost much, accomplish nothing

Thomas Kostigen writing for Marketwatch

SANTA MONICA, Calif. (MarketWatch) -- Suspending the tax on gasoline for summer months when use is highest is a stupid idea at best. It's actually surprising that this proposal has gained any traction at all never mind being supported by Sens. Hillary Clinton and John McCain.

The gas-tax suspension would cost the federal government about $10 billion and do nothing to reduce -- perhaps even increase -- carbon emissions from transportation, which is one of the leading human causes of global warming. Curiously, McCain and Clinton say they want to curb carbon emissions to fight global warming.

Higher prices at the pump may actually get people to drive less, carpool or take public transportation -- all good things for the environment.

The gas-tax suspension would do exactly what the Bush Administration has done with reality: blur it, hide it or delay its consequences.

The harsh reality is that we have less supply of oil, from which we produce gasoline. Simple economics shows that with less supply and steady or increased demand (drive more and there will surely be more demand) prices will increase -- no matter the tax. And with the U.S. government running close to a projected half-trillion-dollar budget deficit this year, it - we --can ill-afford to lose billions in tax revenue.

Mass appeal
If the government really wants to do summer vacationers a favor it could launch a more sophisticated plan: give federal tax credits and incentives to cities, towns and private owners of public transportation services. How 'bout that Hampton Jitney now?
Taking a bus requires about one-fifth of the energy you'd use driving alone in a car. Even flying in a plane uses far less energy per person than driving. Of course, this assumes full cabins. But the point is that almost anything is better than giving people more reason to drive cars.

Traffic congestion in just one patch of freeway can cause as much carbon emissions as a coal-fired power plant. Studies show kids living closer to highways have diminished lung capacity. Consider this: one car idling causes 20 times more pollution that one traveling at 32 miles per hour.

Besides increasing the potential for pollution, suspending the gas tax would take away funds from the federal Highway Trust Fund, which oversees road projects around the country. This would further erode transportation efficiency.

Meanwhile, oil companies would be under no obligation to freeze prices so the dollars per gallon could continue to go up. As it is, that 18.4 cents tax reportedly only totals about $30 for the average consumer's driving habits in summer. Let's call that a tank full; it won't get you far at $4 per gallon.

Facing consequences
If anything, the endorsers of the gas-tax proposal are showing their true colors -- and one of them isn't green. Whatever you think of Sen. Barack Obama you have to think that he's right about not backing the suspension. He's right that we need "change" not the same old "let's brush this under the rug and fake people into believing everything is all right" mentality. "Sure, go ahead and take a vacation. Don't worry about the energy crisis."

It's time we began to face the consequences of our actions and the reality of our shrinking natural resources, in this case oil.

According to government statistics, we are going to have to increase our energy supply by about 50% by the year 2050 in order to meet demand. Let's go back to that supply-demand reminder again. Facing higher prices at the pump puts this reality into hard numbers.

We need more hard policy, not more political glad-handing, to fix the problems in front of us. That's the only way we'll put them behind.