Letters to the Editor

This letter is associated with the following article:
Think Clinton's plan to suspend the gas tax temporarily is a bad idea? A similar measure in Illinois -- which Obama backed -- seems to have helped consumers.
  • Look at the tax mechanism

    I agree that a state sales tax moratorium could have some salubrious effects for the customers, as noted. The federal taxes, however, are a producer tax, collected from the companies that process the road fuel, not from the gas stations that sell it.

    Bear in mind that these producers are publicly traded companies, so removing one federal tax on them only to replace it with another (windfall profits) will have zero effect on prices at the pump. These companies have to maintain their operating margins or they will be severely punished by their shareholders.

    Smoke and mirrors.