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Letters to the Editor

Gas tax holiday: Good politics, but not good policy

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Published May 06, 2008
We'll say this for the notion of suspending the state gas tax: It's a nice break from constantly recurring proposals - usually by governors strapped for cash - to raise it.
But the idea, floated by a state senator running for the 1st Congressional District seat, isn't any likelier to become a reality than the parallel proposals for the federal gas tax made by two of the three major presidential candidates.

The average price of a gallon of gas in the Central Atlantic region has risen to about $3.62, with no end in sight. And about 42 cents a gallon of that - nearly 12 percent - is accounted for by federal and state taxes. The state tax alone is 23.5 cents per gallon.

Obviously, giving Marylanders a break on gas prices between Memorial Day and Labor Day would be appreciated, even if it wouldn't get prices anywhere close to their lowest point in 2007 - and even though there's no guarantee that all of the reduction would be passed on to customers at the pump.

But the gas tax money, about $800 million a year for the state, is supposed to be used for roads and transportation projects. This is a state with, by some estimates, a $40 billion road project backlog, and with more needed now to deal with the upcoming military base expansions. So it makes little sense to drop $200 million out of the state treasury to make it slightly easier for Marylanders to drive around this summer.

Admittedly, the transportation trust fund isn't always used as intended - something we've repeatedly pointed out in this space. There's an established, if not particularly honorable, tradition of governors dipping into it for other reasons. Gov. Robert Ehrlich Jr. took about $315 million from it to balance budgets. And $50 million will be subtracted for the next five years to make up for this year's repeal of the misbegotten computer services tax.

Because of this, we've always argued that the state gasoline tax - even if it hasn't been changed since 1992 - shouldn't be raised until there's a law restricting the use of the revenue to road and transportation projects.

But let's face it: If the state suspended the gasoline tax it would either further retard highway maintenance, or state officials would eventually compensate by raising taxes elsewhere. There would be no long-term benefit.

Besides, the spike in gasoline prices will accomplish things that the politicians have repeatedly announced as goals but have done little to realize. It will encourage Marylanders to drive less, to generate less air pollution and fewer greenhouse gases, and even to purchase more fuel-efficient vehicles. Nationally, high gas prices will have all of the same benefits - in addition to encouraging steps to promote energy independence and more domestic production of oil.

That's why, although you can expect politicians to reap election-year benefits by talking about suspending gas taxes, it won't happen.

- No Jumps-

 

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