Prodded by Gov. Mark Sanford, the South Carolina legislature is moving to suspend the state's 16.8 cent-a-gallon gas tax from Oct. 1 through Dec. 31. The House has passed the measure and the Senate is expected to follow suit.
The governor urged the suspension for this summer, but lawmakers pushed the date to next fall, when school buses would benefit from the lower price and fewer tourists would. It also was felt, rightly or not, that the fuel tax cut would help most South Carolinians' bottom line more during the Christmas season than the summer season.
Then there is politics. What can be more popular in an election year than providing constituents with tax relief? But good politics also can be good policy. Gas prices have whacked many family budgets with what seems like a sharp tax increase.
Hence, relief from high pump prices, even if only temporary, is both compassionate and a boost to consumer confidence that is vital to keeping the economy healthy. Gov. Sonny Perdue and Georgia lawmakers realized that when they suspended taxes on gas for a month last fall after Katrina sent pump prices to more than $3 a gallon. Georgia drivers saved about 15 cents per gallon - and the state surrendered about $75 million in revenues.
Because the Palmetto State tax cut will last three months instead of one, it will lose an estimated $134 million in revenues. But the state can afford to forgo that money more than the people can. Most folks understand that oil companies reap a windfall when gas prices skyrocket. Less widely known, because it's not publicized as much, is that government coffers also are fattened when gas prices go up.
This is why Sanford called for the tax to be suspended. The people need the money more than the state does. Perdue might also consider calling a special session to suspend Georgia's gas tax again, if for no other reason than to keep gas stations on this side of the river in business. If Georgia drivers can save nearly 17 cents a gallon, where do you think they'll go to fill up next fall?