Originally Posted by brewmenn
While I like the idea of lowering taxes I do not support the temporary reduction in gas taxes. All it will really do is allow the oil companies to make even more money.
I completely agree! The reality is that gas is being produced basically at capacity. If we lower gas costs, demand will go up. if demand goes up, we'll need more gas but we can't have more gas cuz we're at production capacity. Because of this we need to reduce demand otherwise there will be a shortage. To redeuce the demand, gas companies will raise prices. Demand will go down.
Bottomline - suspending the tax will cause a 10billion dollar deficit in the trans funds that support bridge repairs among many other things. Our cost will prolly insignificantly go down if at all. Gas companies will make more money because of the inflated costs.
For the average comsumer its like a 30 cent per day saving. Over the suspension period, that's less than $30 savings. It's a bandaid that doesn't solve the problem and it's a political tactic to make you think they are really trying to solve a problem, when in effect it just creates a bigger problem. Reducing taxes isn't always the best thing, you gotta fix the roads with soemthing....