State lawmakers are poised to make this July 4 a day of misguided independence–from gas taxes.
Yes, Illinois as of Monday still boasted the nation’s highest gas prices of $1.97, compared to the national average of $1.65.
And yes, it’s still an election year.
But both make sorry excuses for the budgetary liposuction expected to occur Wednesday when lawmakers convene for a special two-day session in Springfield. In the name of protecting consumers (not to mention political hides) Gov. George Ryan and many rank-and-file lawmakers have expressed interest in suspending the 5 percent state sales tax on motor fuels for six months at a cost to the state of $180 million.
These wannabe Alan Greenspans ought to cool their heels and resist the urge to become market meddlers every time prices dip or surge.
For one thing, pump prices are coming down already.
For another, there’s no guarantee consumers will ever see a dime of the savings–which, by the way, is about as much as they could expect to save per gallon. One need look no further than last week to doubt oil companies’ eagerness to pass along gas savings to motorists. Wholesale prices of gas at the beginning of the week dropped from $1.60 to $1.07, but it wasn’t until the wrath of Washington and Springfield befell the industry near the end of the week that customers felt lighter pumps.
Finally, politicians already have ample campaign trail boasting material in the fall property tax rebate, even if it averages only $125 per taxpayer. Touting an extra $2 savings per fill-up is hardly likely to provoke November stampedes to the polling booth.
Ryan has directed state agencies to earmark 2 percent of their operating budgets to help offset what House Speaker Michael Madigan (D-Chicago) rightly called the “gift to gas station owners.” Budget surpluses would cover an additional $75 million.
In coming up with the remainder, perhaps Ryan and his legislative leaders could set an example and dip into their own $380 million goodie bag for local pork . . . er, public works projects.
Or maybe they should just forget the whole thing.
