Spectator editorial: Gas guzzling
Tax holiday would create more problems than it would solve
Issue date: 10/27/05 Section: Editorial/Opinion
State Rep. Stephen Nass, R-Whitewater, recently wrote a two-part bill to try to help Wisconsin residents cope with the rising cost of gas. The first part of the bill would put an end to the annual indexing of the gas tax. The second part of the bill would create a minimum 30-day gas tax holiday. The bill would allow the governor to extend the holiday for another 30 days.
Currently, Wisconsin's gas tax is 29.9 cents a gallon. The Wisconsin Department of Transportation receives a large share of its funding from the gas tax.
Nass said abolishing the gas tax for two months would save consumers about $175 million, according to an article in Monday's issue of The Badger Herald, a student newspaper of UW-Madison.
While gas prices are a cause of concern for many Wisconsin residents, Nass' solutions makes little sense, and will only hurt Wisconsin residents in the long run.
First, taking away millions of dollars from the DOT will lead to major road problems and transportation issues.
Furthermore, the state already is facing a challenges to completely fund all departments and agencies. All taxes serve a purpose in the state. In a time of major budget crunches, it's unwise to eliminate a tax. The money to balance the state budget has to come from somewhere. If this money doesn't come from a gas tax, it likely would come from another area, such as property or income taxes. In the end, citizens still will be asked to contribute this money to state coffers.
Additionally, with a gas holiday, consumers likely would buy more fuel than usual. It seems the only groups that would win in the long run with this scenario are the gas companies.
Nass is on the right track by highlighting rising gas prices; he's just going about it in the wrong way. A better solution would be to use money to find innovative ways for the state to reduce fuel costs, either through economic methods or new technology.
| The issue State Rep. Stephen Nass, R-Whitewater, recently wrote a two-part bill calling for a 30-day tax holiday and an end to the annual indexing of the gas tax. |
Currently, Wisconsin's gas tax is 29.9 cents a gallon. The Wisconsin Department of Transportation receives a large share of its funding from the gas tax.
Nass said abolishing the gas tax for two months would save consumers about $175 million, according to an article in Monday's issue of The Badger Herald, a student newspaper of UW-Madison.
While gas prices are a cause of concern for many Wisconsin residents, Nass' solutions makes little sense, and will only hurt Wisconsin residents in the long run.
First, taking away millions of dollars from the DOT will lead to major road problems and transportation issues.
Furthermore, the state already is facing a challenges to completely fund all departments and agencies. All taxes serve a purpose in the state. In a time of major budget crunches, it's unwise to eliminate a tax. The money to balance the state budget has to come from somewhere. If this money doesn't come from a gas tax, it likely would come from another area, such as property or income taxes. In the end, citizens still will be asked to contribute this money to state coffers.
Additionally, with a gas holiday, consumers likely would buy more fuel than usual. It seems the only groups that would win in the long run with this scenario are the gas companies.
Nass is on the right track by highlighting rising gas prices; he's just going about it in the wrong way. A better solution would be to use money to find innovative ways for the state to reduce fuel costs, either through economic methods or new technology.