the policy amounts to borrowing money from China (in the form of an increased deficit) and shipping it to Saudi Arabia (by boosting oil purchases).
But it goes deeper into it by summarizing Jonathan Alter at Newsweek:
- A gas-tax holiday would fail to provide relief to consumers. Not only are the sums at stake piddling, but the windfall would likely go to oil companies, not drivers.
- A gas-tax holiday is environmentally irresponsible. Providing inducements to drive is exactly what we don’t want to be doing right now. (Although, to be fair, the basic uselessness of the tax break is such that it won’t really affect gas consumption one way or the other. Not sure this is a selling point, though.)
- As gas-tax holiday is fiscally irresponsible. The federal excise tax on gasoline is used to fund improvements in our crumbling highway infrastructure.
- A gas-tax holiday is shortsighted. Gas prices are going to keep going up, and up, and up. Insofar as high fuel costs are a problem, solutions need to be long-term and structural.