Second, the state doesn't need the money now. With $9.6 billion in budget reserves, state government can cover road maintenance without the tax, which generates about $40 million a year.
Third, this is a suspension, not a repeal. That's wise. The tax, which at 8 cents is the nation's lowest state motor fuels tax, will resume in two years under Parnell's proposal. Lawmakers might consider scaling that back to a one-year break, like the one in effect until September 2009.
Taxes pay for civilized society. But when the state doesn't need to tax, it shouldn't. That's the case here.
Some worry that cutting the price of gasoline will just encourage more consumption, that any tax break sends the wrong message. That could be; let's remember we're not a state rich in transportation alternatives. Some of us can take the bus, bike or walk. But there's a reason Alaska fuel demand is so inelastic: We depend on motorized wheels, and that won't change overnight. Use taxes to cut consumption and the result won't be much less consumption, just a bigger bite out of family budgets.
Lawmakers critical of the state's refiners for high gasoline prices point out that the governor's proposed break is no substitute for further action on gas prices. At the very least, we still need a better, clearer explanation from the refiners as to exactly why our prices are the nation's highest, why our prices have risen in concert with Lower 48 increases but haven't fallen that way since 2008. Alaskans shouldn't have to wait any longer than this legislative session for those answers.
In the meantime, a break of eight cents a gallon isn't much. But it still counts. We'll take it.
BOTTOM LINE: Alaska can afford a break on motor fuels taxes.
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