ACP Pubs

Lisa Doyle

A Suspended Gas Tax Costs Us All
April 18, 2008

Earlier this week Sen. John McCain called for a suspension of the gas tax between Memorial Day and Labor Day, calling it an immediate “economic stimulus.” The move would shave the tax off high gas prices, which would be an immediate relief to may consumers. But what would it cost us in the long run?

According to ARTBA, the proposal would have severe negative economic impacts on the construction industry, eliminating $9 billion nationally in infrastructure investments, and causing the loss of over 300,000 construction jobs. The five states in Construction News territory could lose nearly $555.2 million in funding and 20,000 jobs.

This is grim news, especially for states that are dealing with long-term funding shortfalls.

In Addition, the Highway Trust fund’s Highway Account is facing its first ever deficit. A suspension of the gas tax would have infrastructure consequences that reach beyond 2009 with fewer investments in transportation projects, fewer construction jobs, and more congestion on our overstressed highway system.

Dropping the gas tax won’t necessarily lower fuel costs. States that temporarily suspended their sales tax in the past saw escalating retail prices in response. Consumers didn’t catch a break, and state transportation projects suffered.

A suspended gas tax will cost us all valuable infrastructure investments in the future, valuable jobs that help drive the economy, and valuable personal time sitting in congested traffic.

Posted by Lisa Doyle on April 18, 2008 | Comments (0)