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Wednesday, Dec. 24
The Indiana Daily Student

A real relief from high gas prices

We say: Suspending the sales tax on gasoline is a short-term solution with long-term hazards

We are a society of complainers. Everything was cheaper and better in the old days. "Bread is so expensive today ... I used to buy a carton of milk for $1 ... I remember when gas was less than $2 a gallon." \nNo matter the price, we'll complain. \nNostalgically transfixed in the past, we can't grasp simple economic reality --prices rise with time.\nThus, if we genuinely want relief from high gas prices, we need to invest time, effort and energy into finding an alternative to the current fuel system. Suspending the 6 percent sales tax on gasoline is a short-sighted solution. It's not the answer. \nAn Indiana lawmaker recently raised the idea as a quick-fix solution to soaring gas prices. Rep. Dave Crooks, D-Washington, recommended a 90-day suspension on gas taxes, which he says will give us time to see if prices will level. \nWe recognize the potential economic assistance a suspension would yield, but we believe it's a premature solution with minimal relief benefit, and thus, a more practical, proactive approach to the problem would include a study of long-term solutions rather than temporary preemptions.\nGas prices released last Wednesday through a AAA survey averaged $2.62 -- below the Aug. 19 $2.63 record. Any decision to suspend the sales tax right now seems premature. We don't know if prices are going to level off or continue to increase. Regardless, we shouldn't flippantly endorse a sales tax suspension every time prices rise. \nA year ago Hoosiers were complaining about high gas prices, today we continue to complain and six months from now we're likely to carry on our criticism. Suspension is a serious solution, only to be harkened in times of severe crises. When late Gov. Frank O'Bannon suspended the tax in 2000 because gas prices reached $1.80, he sacrificed the state $46 million in revenue. \nFurthermore, any economic relief would be minimal. The suspension would save motorists only about 13 cents per gallon, according to Friday's IDS article "State relief on gasoline prices unlikely for now." \nPrices across the state exceeded $3 per gallon last week. With a sales tax suspension on the $3 (if we fill our tanks with 15 gallons per week), we would save about $122.62 per year. \nFor a measly $122.62 we're willing to risk the state's financial security?\nLuckily, Gov. Mitch Daniels isn't. Despite the possibility of raising his popularity with a suspension, he's willing to let public opinion slip.\nRather than trying to revoke a seemingly insignificant 6 percent sales tax, we should sincerely explore alternative answers -- such as hybrid vehicles, public transportation and alternative fuel sources. Long-term alternatives will help us combat another rise in gasoline prices, rather than stumble from one short-term crisis to the next.

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