WXXI: GOP Pushes Gas Tax Holiday (2008-04-30)

Republicans in the State legislature are proposing a gas tax holiday this summer between Memorial Day and Labor Day. But Governor David Paterson says he's reluctant to support it unless there's some guarantee that the savings will actually end up in taxpayer's pockets.

State Senate Majority Leader Joe Bruno says his house will vote next week on a bill to temporarily rescind the state's nearly 33 cents a gallon gas tax for the summer. He says if the federal and local governments followed suit, the savings could be as high as 65 cents a gallon.

"What the heck is more important right now in New York State than to be mobile with your car?" asked Bruno. "This is a life issue."

Senate Republicans do not have a specific plan for making up for the lost revenue from temporarily rescinding the gas tax. Senator Bruno says the proposal will pay for itself because it will free up New Yorkers' money to buy other things, like food and clothing.

Senate Democrats, who are in the minority in that house, but who have 30 out of 62 votes, are also in favor of rescinding the gas tax. Republicans in the Assembly are also calling for a gas tax break this summer. But Many Assembly Democrats, who are in the majority in that house, are opposed.

Governor David Paterson expressed doubts about the plan, saying he would first need a pledge from distributors and sellers of gasoline that they would actually pass the savings on to customers.

"The benefit of the tax doesn't go directly to the consumer," said Paterson. "There's a middle man. And they can't guarantee that it's going to get there right now."

Paterson says the federal tax laws need to be changed to make major oil companies pay their fair share when they reap huge windfall profits.

Democratic Presidential candidate Hillary Clinton, whom Paterson supports, is also calling for a federal gas tax holiday this summer. She also backs imposing a windfall profits tax on big oil companies. Senator Barack Obama does not support the tax holiday. Republican Presidential candidate Senator John McCain does back a gas tax hiatus for the summer.

In New York State, whether or not the gas tax holiday becomes law also depends on the opinion of Assembly Speaker Sheldon Silver, leader of the Assembly Democrats. Silver, in a statement, said that Republicans in New York are just "tying to hide from the failures of the Bush Administration", whom Silver blames for the rising gas prices. Silver said a summer gas tax holiday would result in a $500 million dollar deficit in the state's road and bridge repair fund, and would be the "height of fiscal irresponsibility" when the state already faces a large budget gap.