This is totally a partisan issue. The probably Dem nominee opposes it, the certain Republican nominee is for it, and it pits a benefit to oil companies versus sound environmental and economic policy.

Partisan issues can in fact be obvious ones. The reason I'm a partisan Dem is because we generally are on the side of the obviously good.

I agree with all of the principles except #2.

First no one is talking about subsidizing gasoline just lowering a consumption tax already in place. If we need a tax on gas to pay for roads, fine. Do a simple optimization problem to get the tax per gallon to equal the expenditure on roads.

If there are environmental externalities then properly disclose the projected costs and cover these costs with a similar tax (then redistribute this evenly to all citizens). Simply put, make the the driving market allocatively efficient.

However, the government should not be in the business of needlessly encouraging conservation. People should pay the fair cost of driving and nothing more. I would hate for driving to go the way of smoking where taxes are imposed arbitrarily.
So, as long as driving tax does not become some abstract sin tax of course you will get bipartisan support.

"""First, research shows that waiving the gas tax would generate major profits for oil companies rather than significantly lowering prices for consumers.""""

Why, as an economist is this bad? Don't you want the gas price to stay high so people will conserve? And what is the rationale for why profits are 'bad'? Do economists make a 'profit' from their work?

""Second, it would encourage people to keep buying costly imported oil and do nothing to encourage conservation.""

I thought you just said the oil companies won't lower the price? They will just pocket the money? Which is it? Your argument doesn't make much sense because you just completely changed from the oil companies keeping the proficts, to lower cost causing more consumption.

""Third, a tax holiday would provide very little relief to families feeling squeezed.""
What in the world does this mean? I thought you just said it would provide NO relify because the oil companies will not lower the price? Are you stoned??
So you go to the doctor for a deep cut in your arm and ask for pain pills, he says, well, they will only provide a little, temporary relief so let;s not do that. Again, are you high?

"""Fourth, the gas tax suspension would threaten to increase the already record deficit in the coming year and reduce the amount of money going into the highway trust fund that maintains our infrastructure.""

But you just said the oil companies will take the money in profit that we then get to tax. So I take it they were alos against the stimulus package because that did the same thing.

"""Signers of this letter are Democrats, Republicans and Independents. This is not a partisan issue. It is a matter of good public policy."""
BULL! They speak with forked tongues. If the oil cmpanies tomorrow decided to raise gas prices by 18 cents per gallon and said it was to improve their infrastructure, to build for the future and make sure they don't run deficits, these same economists and the rest of the left would be screaming bloody murder.

You would hear talk of price gouging, etc. About how mean and evil they are for daring to take money for such a necessity as gas, for hurting the poor, etc.

Can we send a letter to Obama if we go to Ethanolscam.com?

Come on Ezra
The gas tax holiday is a bad idea but these websites are not driven by public policy but by politics. How many economists got together to create a website against the much more damaging Bush tax cuts or the drive to make them permanent?

Someone point me to the site where all the economists are getting together to push for an economic stim pack that extends UI benefits, temporarily increases food stamp benefits, provides aid to states and investment in infrastructure projects that can be up and running in under a year and I'll be impressed. That's an issue that's before Congress as we speak and needs a ton of pressure to get some movement in the right direction. Spending any time at all on this gas tax holiday is beyond ridiculous.

My gas tax proposal beats Hill's.

I've got an idea -- I usually do :-] : since the price of gas wont be affected by LOWERING the federal tax, maybe the price of gas wont affected by RAISING the gas tax either. If we add a dollar to the tax maybe the gas companies will be forced to lower their price a dollar to get rid of all the supply on hand. So, with allowance for a fair return for the refineries, whenever they are running full out maybe we could up the tax on gas a dollar or so in order to take back much of the excess price for taxpayers.

Don't forget to vote for me. :-]