Gas Tax Holiday is a BAD Idea

If John McCain and Hillary Clinton handed in their idea for a gas tax holiday as a way to alleviate gas price for an economics course they should both get an F. 

Lowering taxes even for the short term would stimulate demand and we all know that is not a viable long term solution. 

The only parties that would benefit in the long term from a "Gas Tax Holiday" would be the oil companies. 

In place of this example of "lottery economics", Americans need to consume less gas which in turn would impact the price of oil and in turn the price of gas. 

Here are a few things that could be done to lower Americans demand for oil

1) Encourage those Americans that could work from home, to work from home. 

2) Offer free bridge tolls to those with passengers and double the tolls for solo passengers. 

3) Have a nationwide free public transit day. 

4) Make the purchase of a bicycle a tax deduction. 

5) Set aside one day per month for working from home, public transit or bicycling. 

Americans need to ask themselves, what am I doing right now to lower the demand for gas. 

Marcus Ronaldi

http://www.linkedin.com/pub/0/67/264