Economist: Gasoline-tax holidays would offer little relief

05/7/2008 | Boston Globe (tiered subscription model), The

Joseph Doyle, a professor at MIT Sloan School of Management, said gasoline-tax holidays being proposed by several states and championed by two of the three leading presidential candidates would offer little benefit to consumers. The most likely beneficiaries will be gas station owners, as gas prices would likely fall significantly less than the full amount of the actual tax cut. "There is a common misperception that if a state tax of 5% per gallon is eliminated, then the price at the pump will fall by 5%," Doyle said.

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