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Tuesday, April 29, 2008

'Gas tax holiday' benefits receive two Pinocchio's

Say it isn't true. McHillary pandering for votes?

The advocates of a "gas tax holiday" are exaggerating the benefits to consumers from their proposal. If the Illinois experience is a guide, there is likely to be some reduction in the price of gas, but it would fall well short of the size of the tax reduction. In order to pay for the tax cut, the government would have to cut back on highway construction and maintenance or find some other way of plugging the shortfall in revenues to the Highway Trust Fund.

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