May 2, 2008
Washington D.C. - With rising fuel costs and a weakened US dollar, two presidential hopefuls are calling for a national holiday tax break on fuel prices.
"Just for the summer, why don't we give the American people a little break," said Republican presidential candidate Sen. John McCain during an April 24th interview.
Both Senator McCain and Senator Hillary Clinton are suggesting that the 18.4 cent a gallon federal gas tax should be suspended between Memorial Day and Labor Day. But experts conclude the 3 month gas tax suspension would only save consumers around $25.00 to $30.00 and result in losses upwards of $10 billion for highway construction projects.
Many leaders on Capitol Hill agree the plan won't work.
"This has happened before and it has not accrued to the benefit of the consumer because it doesn't have to be passed on to the consumer.," said House Speaker Nancy Pelosi.
However, some lawmakers are saying that big oil companies should pick up the tab by having their profits taxed.
"Big oil companies ought to pay for it. Take some of the money out of the royalties. Take some of the money out the windfall profits and reduce that gas tax," said Rep. Charles Schumer, (D) New York.
But with the proposal seemingly going no where in Washington, it appears that consumers will see little change in the growing prices at the pump.