How about that Gas Tax Holiday? On the surface it sounds great and seems helpful. We know all too well how our government often proposes things that sound great but don’t help - in fact they often do more harm than good.
A March 18, 2022 WTOP article tells us:
Gov. Larry Hogan signed emergency legislation declaring a 30-day gas tax holiday following its unanimous approval by the Maryland House and Senate. The pause on Maryland’s gas tax of 36 cents per gallon, effective immediately ...
To put your potential Maryland gasoline savings in perspective, if you buy 20 gallons of gas per week you will save $7.22 each week, so about $30 for this 30-day program.
Why bother? Inflation is running rampant, gas prices are flying high and Maryland's politicians offer a $30 "holiday" on money that is yours to begin with.
Although better than a stick in the eye, these savings pale in comparison with price increases since the Biden Administration took over.
The “real” issue is the pickle the Administration is in for its role in sky-high gasoline prices and our fossil fuel national surplus-turned-deficit. This Administration’s war on fossil fuels through gas pipeline shutdowns and other infrastructure constraints is the source of this problem, as the EIA data indicates.
Of strategic importance, this American problem renders NATO vulnerable in its posture with Russia, with many EU countries highly dependent on Russian energy, rather than American energy.
As another stopgap measure, the Administration started drawing down our strategic petroleum reserve (SPR). First, they withdrew 50 million barrels starting last November with minimum price improvement. Now, they plan further withdrawals of 1 million barrels per day for 6 months. Instead of simply reversing their Quixotic Green Energy fantasy, they plow forth with their war on fossil fuels.
Back to that Tax Holiday. It was originally proposed by the federal government and stalled. A few states, all with limited ability to offset federal actions against fossil fuels, chose this proposed tax holiday, including Maryland.
There is not a consensus as to how much a gas tax holiday can really help consumers because of several issues:
- The tax cuts may not translate to lower prices at the pump and require monitoring;
- The cuts take money away from highway maintenance and bridge repair;
- It's not the right kind of tax cut, which would instead reduce unwanted spending or waste;
- The small savings to citizens may be lost in price hikes; rather than improving supply or reducing demand the price reduction helps sustain demand;
- There are better ways to help, most obviously renewing support for US fossil fuels recognizing we are the world’s cleanest producer.
In the final analysis this tax holiday is minimally helpful. It does not get to the root causes of runaway prices. The best strategy for America is being a net exporter of energy by developing all feasible forms.
In the meantime, Russia continues to make big money exporting fossil fuels thereby funding its war in Ukraine and threatening NATO. Burning our strategic reserves for the sake of small price reductions is a foolish and unnecessary threat to our National security.
This is yet another case of big government unable to solve big problems putting our country’s interests at risk. Many believe the Feds want high oil prices thereby fulfilling their Green Dream.
How do we as ordinary citizens make our voices heard? An Article V Convention of States is the answer.
The good news is that we’re more than halfway there: 19 of 34 state legislatures have passed the Convention of States resolution and the country as a whole is becoming increasingly aware of the need to rein in the federal bureaucratic fantasists.
Our focused, consensus building Convention of States will improve our ability to engage and influence our federal government’s priorities. It will re-align We the People with the Constitution. Join the Convention of States movement by signing the petition and join our grassroots volunteer army in Maryland to achieve these aims.
