Consider the costs of suspending gasoline tax

Danny L. Thompson, Henderson

Tuesday, April 22, 2008 | 2:03 a.m.

On April 15 Republican presidential candidate John McCain proposed a “gas tax holiday” from Memorial Day to Labor Day. There are many reasons why this is not a good idea and the proposal should be viewed with skepticism.

First, the gas tax is used only for the Highway Trust Fund, which maintains the nation’s transportation infrastructure, and the fiscal impact on that fund would be serious if such a proposal were to move forward. Such a “holiday” would eliminate billions nationally for investments in infrastructure at a time when, especially in light of last year’s Minnesota bridge calamity, such investment is already below where it needs to be.

Estimates show Nevada’s share of that loss could be close to $52 million and could well result in a loss of 1,800 Nevada jobs as construction companies are forced to reduce their workforce. Given the well-publicized funding challenges here in Nevada under existing circumstances, anything that exacerbates the problem is something we cannot afford.

Another point is that this cut might not even offer relief at the pump. If the tax were reduced, the demand for fuel would increase. This is especially likely during the peak summer travel period.

That uptick in demand would move the price of fuel back up and erase practically any benefit motorists might receive.

Simply suspending the gas tax is not the right way to go and this political gimmick would lead to troubling ramifications for Nevada.