Will a gas tax holiday ACTUALLY lower the price of gas?

[bluestateguy]

I am inclined to doubt it for a number of reasons. Reason 1), the federal gas tax funds highway improvements, as do state gas taxes. States, fearful of losing much of their federal highway money, might turn around and raise THEIR gas taxes, thereby eating up any savings. Reason 2), the oil companies and service station owners might very well just raise the price by 18 cents--the federal gas tax amount--and keep the savings for the themselves.

[ryanmuegge]

1. Either way, we would get fucked. Just assume that, regardless of how.

It's the same thing as those federal income tax "cuts." The state and local governments just raised their taxes to compensate.

[baldguy]

2. Thas gas tax will get cut 18 cents per gal

And then the oil cartel will raise prices to make up for it so the price won't change.

[TheCowsCameHome]

3. Does anyone think dealers will cut prices to reflect the tax holiday?

If you do, you're living in lala-land.

[pscot]

4. No

n/t

[Lobster Martini]

5. Never thought I'd agree with Michael Bloomberg, but yeah...

...it's a feckin' dumb idea. No way...although I do like the idea of a tax holiday tree...I could hang dollar bills on it...whoops, back to the original thought...it's a feckin' dumb idea.

[dubeskin]

6. I see it this way

No matter how much gas gets dropped down now, when the "holiday" is over, gas will shoot back up that much more, regardless of the increase in price. If it's $4.35 when the holiday starts, and $4.35 when it ends, it's really $4.53 because of that increase. So in a way, all it is is prolonging the inevitable.

[Lint Head]

7. Fuel is already twice what it should be. 18 cents is nothing.

The roads here in Tennessee are already a mess. Apparently the tax isn't used for improvements anyhow. :dem:

[sfam]

8. Common - the gas station owners are hurting too. We HAVE to help them out

Bully for Hillary, thinking of those poor gas station owners. I feel sorry for them too. Lets let them sell more gas and stop taking their profits, dammit! So what if they only lower the price by 1/3 or so. Who doesn't like to help your local gas stations?