Proposal to lift gas tax sparks debate

by Bibeka Shrestha

Legislators in several states have been struggling to ease the burden of high gas prices. Delegate Ben Cline, R-Lexington, is one of those lawmakers calling for a moratorium on the state gas tax.

The idea is to combat the most widespread effect of Hurricane Katrina, which damaged key refineries in the Gulf Coast and caused high gas prices to escalate even further.

Though Cline seeks to follow Georgia’s lead in suspending the gas tax at the state level, Democratic Gov. Mark Warner has ignored requests for the suspension thus far.

The savings from a gas tax moratorium would amount to 17.5 cents per gallon in Virginia. Cline said the gas tax should be suspended to give families a chance to recover. “People desperately need help,” Cline said.

David Cox, a Democrat who is running against Cline in the Nov. 8 election, disagrees strongly with the idea of a moratorium. He believes the money can be used elsewhere. “If someone wanted to give you a dollar, you’d say sure, but would you rather have a dollar or have your property taxes lowered?” he said.

James Kahn, an economics professor at Washington and Lee University, is also opposed to the idea of a gas tax suspension. “It’s idiotic,” he said. “We already suffer from a lack of revenue to finance needed transportation requirements.” Kahn said that though people lament the increases, the cost of gas here is still half what it is in Europe. Kahn also said that because “oil is cheap” in the United States, people don’t invest in alternative fuels.

Suspending the gas tax for 60 days would cost Virginia $150 million dollars. Cox reminded local residents at a candidate’s forum that for every dollar the state gets in gas taxes, it gets four dollars in federal matching funds. Thus, he claimed, the real loss would total $750 million. Meanwhile, consumers will not even save enough to buy a gallon of milk, Cox said.

According to Cline, refineries in the Gulf will take six to eight weeks to recover and for prices to decrease. “We have over $500 million in surplus [in the Virginia treasury],” he said. “We can afford to suspend the gas tax.”

The legislature is not in session, so the governor must call for a special session or two-thirds of both houses must vote to convene for a gas tax moratorium to have a chance of passing. 

Cline believes that opposition to the proposal originates with people who would “prefer to spend money on additional government programs rather than return it to taxpayers to help them directly.”

“I favor trying to lower our tax burdens, but in a careful way for the best in the long term,” Cox said.

Customers at Hunter Hill, a gas station in Lexington, hold contrasting views about the measure. “I think it’s a good idea. I’d always rather spend it on an ice cream cone than more money on gas,” said Jerry Roscoe, 43, of Lexington.

Salem Sidi, 27, a gas attendant, agreed with Roscoe. “A lot of people cannot afford gas,” said Sidi. “[They] have to use gas to get anywhere.”

A dissenting voice came from Morgan Cohen, a 16-year-old Rockbridge County High student. “Everyone’s dying for the gas [prices] to go down, but we’re lucky compared to the rest of the world.” Cohen believes the money should be used for other purposes, such as helping the poor.  He added, “This nation’s pretty damn selfish.”

Where to get the cheapest gas in Virginia.

How have gas prices in Virginia changed over the last year?

How did Georgia do it?

Produced by Washington and Lee journalism students.

Lead supervisor:      Prof. Claudette Artwick

Reporting supervisor: Prof. Doug Cumming

Editing supervisor:  Prof. Pamela Luecke

Technical supervisor:  Michael Todd