Non-relief Relief

Democrats are proposing a temporary repeal of Federal Gas taxes. Almost sounds good, ‘til you read the fine print:

The measure, proposed by Sen. Bob Menendez (D-NJ), would reduce the cost of gas by $0.184 per gallon and the cost of diesel by $0.244 per gallon. The move, aides say, will provide $100 million dollars per day in relief.

Democrats say the money will be made up by cutting six billion dollars in tax breaks to oil firms.

Any of you econ wizards care to venture a guess as to where gas prices will go when you add back these expenses to the oil co.’s bottom line?

Glenn Reynold’s quip not withstanding, this isn’t much of a winner politically if and when gas prices rise as oil companies look to recoup any money lost when the tax breaks go bye-bye.

Jim Gerahty likes the idea and adds a suggestion for the Republican leadership.

Here is a list of gas-taxes by State. You can see how badly you're being gouged by your Government every time you fill up.