Presidential Candidate McCain Borrows an Idea From Japan Wants a Gas Tax Holiday

May 2, 2008

Our own little holiday from the gasoline tax ended yesterday. As I pointed out in my previous post, I was looking forward to seeing if the gas prices would return to their March levels or if they’d go higher. Needless to say they went higher… I haven’t heard much talk about why, but that in many places in Japan the price of gasoline has gone above 160 yen per liter.

My last gas purchase before the Japanese gas tax holiday was at 149 yen per liter at the end of March.

My last gas purchase beforethe end of the gas tax holiday was at 124 yen per liter (and a 2 yen discount for using my credit card).

I haven’t bought gas yet, but my local gas station is now selling gas for 158 yen per liter.

If you’re in the US, I’d advise you to be at least a little wary of things like a gas tax holiday. Politicians seem to think that the people have short memories, or would be more amenable to an increase in taxes after having had a break.

Clinton apparently supports the idea while Obama is against it, according to this article. “McCain: Gas Tax Holiday ‘A Little Break’ Not A Fix-all“.

I have to say that I’m totally in favor of this gas tax holiday if it coincides with my trip back to the states this summer… partially because I’ll be back in Japan when the other shoe falls… but that’s kind of selfish, I guess. Of course, any money I save I’m probably also going to be pouring into the US economy there on my annual crazy summer shopping and eating spree.

Of course as stated in the article above, the reduction in tax will really only end up being about $30 in savings over the summer. If that’s the case it starts to look more like big political talk. Of course, you can also say that 30 bucks is better than nothing.