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Date: 4/16/2008
AEM statement on Senator McCain's "gas tax holiday" proposal
Senator McCain has called for eliminating the gas user fee this summer as an economic stimulus measure. The Association of Equipment Manufacturers (AEM) calls this an unproductive idea.
Here are some reasons why from AEM President Dennis Slater. AEM is the Milwaukee based international organization representing off-road equipment manufacturing (agriculture, construction, forestry, mining and utility).
Eliminating the federal gas tax would further delay badly needed road and bridge repairs and improvements. An estimated $9 billion dollars would be lost ($7 billion for highway improvements and $2 billion for transit).
Removing the federal user fee, even temporarily, will have a ripple effect on state and local governments, as they match federal spending to make local surface transportation improvements.
Federal user fees have not been raised since 1993, and therefore have not been a factor in the increase in fuel prices.
The proposal would also have a ripple effect on employment. It is estimated that more than 310,000 American jobs related to federal highway/transit investments would be at risk.
If the "gas tax holiday" was enacted, drivers would spend even more of their summer holiday stuck in congested traffic.
For more information, contact AEM’s Rich Jefferson – rjefferson@aem.org.
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MEDIA CONTACT:
Pat Monroe
Association of Equipment Manufacturers
414-298-4123
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