It might not the best solution in the world, but any tax break is certainly worthy of consideration - just not according to ABC's April 30 "World News with Charles Gibson."
"The idea is to cut taxes and gas prices during in the summer vacation months, when demand is highest," ABC News correspondent David Wright said. "Great politics, but apparently terrible economics."
ABC opposed the proposal, supported by both presidential contenders Sens. John McCain (R-Ariz.) and Hillary Clinton (D-N.Y.) on the grounds it would increase demand and cause harm to the environment.
"[C]utting the gas tax actually goes against the long-term energy goals all three candidates have embraced, cutting pollution and reducing our dependence on foreign oil," Wright said. "If more people are out on the roads, those problems will only get worse."
The segment trotted out an economist from the left-leaning Urban Institute that condemned the idea.
"You would be hard-pressed to find any economist who would say that this is a good idea," Len Burman of the Urban Institute said.
However, the editorial board of Investors Business Daily didn't seem to have any problem with calling this proposal "a good idea." An editorial in the April 15 IBD finds some merit in the proposal. Although it isn't a permanent solution, it is a step in the right direction.
"The tax holiday is a slam dunk," the editorial said. "Yes, the government would lose $10 billion in revenue, as the Associated Press took pains to point out. But that's exactly the point. That money would instead be going into the pockets of the very people who need it most - those pinched by the soaring cost of oil, now at $113 a barrel. If Congress needs the $10 billion, let it cut pork-barrel spending."
