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May 8, 2008: Summertime Gas Rollbacks

Bill Fine WCVB President and General Manager

POSTED: 4:33 pm EDT May 7, 2008
UPDATED: 7:34 am EDT May 8, 2008

One thing we can all agree on, gas prices aren't coming down any time soon.

A proposed summertime federal gas tax rollback will not jump start the faltering economy nor provide any tangible financial relief. The so called "Gas Holiday" is a gimmick and clearly pandering to the voting public in an election year.

Economists have universally challenged variations of a plan, proposed by Senators Clinton and McCain, as deriving no meaningful economic benefit to the driving public. Their argument also requires a suspension of belief that oil companies simply won't raise prices to fill the gap, while tax cuts erode necessary funds for bridges and roads.

The only possible case we could make is purely an emotional one; it might give a psychological boost this summer to vacationers, businesses dependent on tourism and companies that transport goods around the country. If emotion ruled, instead of common sense, a cut would be good news for New England. Any relief would be welcome.

So, why has this issue stayed front and center, other than for potential political gain? Rising gas prices is an emotional topic and highlights everyone's concerns about the runaway and rising costs on many of life's staples. Unlike groceries and other items caught in this inflationary spiral, we all see gas price increases everyday, in full public display at the pumps. Everyone is painfully aware of the price of gas.

Any tax cut is usually welcome news, but not this time. Despite the emotional appeal the gas holiday portends, we see this red herring for what it is: a mirage of savings.


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