AM REPORT: NY Senate joins the gas-tax pander parade

By Mary Anna Towler on May 8, 2008

It didn't work for Hillary Clinton, but the Republicans and Democrats in the State Senate must think that proposing a gas-tax holiday will help them in next fall's election. Yesterday they approved suspending state gas taxes for the summer, with only 15 senators voting against it.

The Assembly, dominated by Democrats, opposes the holiday, as does Governor David Paterson, so we're likely to keep on paying the tax.

That's a good thing. The high gas prices are painful, but they're necessary. And hundreds of economists are saying that cutting the taxes on gas will make things worse, not better. In a column yesterday, the Wall Street Journal's Mark Gongloff lays out the problem.

High demand is driving up the price of gas. Cut the price, and we'll use more gas, which will drive the price back up. And that'll just make the oil companies richer and increase global warming. Raise gas taxes and we'll drive less, buy smaller cars, and push for better mass transit.

What about the low-income and middle-income Americans for whom the cost of gas has become a real burden? Find some other way to help them. Reduce income taxes, for instance, or provide an income-related rebate. Or, frankly, ration the stuff.

Americans act as if the high gas prices are a surprise. They shouldn't be. We've put off reducing our dependence on oil for far too long. Maybe now we'll be ready to talk about real solutions.