Editorial: Simple solutions are foolish

Sunday, March 12, 2000 | 8:53 a.m.

Skyrocketing gasoline prices are causing members of Congress to flutter as they try to find ways to bring these costs under control. Unfortunately most of their policies, which they argue would soften the blow of rising oil prices, aren't well thought out. For instance, Alaska's U.S. senators believe oil drilling should be allowed in the Arctic National Wildlife Refuge in northern Alaska, but they fail to mention this could imperil the coastal plain's wildlife and ecology.

Another plan, which is getting a lot of media attention, would repeal the 4.3 cent increase in the federal gasoline tax that was passed in 1993. This may be politically popular -- after all, who likes taxes? -- but a closer inspection reveals its folly. First, taking away the 1993 gas tax increase would mean a corresponding reduction of billions of dollars in a federal trust fund -- where these taxes go -- that pay for highway construction. This would be bad public policy that could delay, if not end, some important highway construction projects. In addition, Rep. Bill Archer, R-Texas, chairman of the Ways and Means Committee that has oversight of tax legislation, questions the actual impact a rollback would have. Archer correctly notes that if a gallon of gas reaches $2 a gallon this summer as expected, the reduction may not mean much.

Anger over high prices isn't dampened by the fact that, historically speaking at least, the price that Americans pay at the pump hasn't changed much. As the Associated Press reported last week, when taking into account inflation, today's prices are almost identical to what drivers were paying in 1972 when gas was being sold for 36 cents a gallon. Still, this isn't much consolation for most working men and women who have seen gas prices shoot up more than 60 cents a gallon in about a year, a dramatic increase that affects the budgets of households and businesses.

Not many politicians have the courage to admit it, but as our society has shifted its car-buying habits, from economy-sized cars to gas-guzzling sport utility vehicles, this has helped spur demand. It was only a matter of time before oil prices would start to rise, especially in a robust economy where an increase won't be felt as strongly by consumers who have the financial wherewithal to buy these larger vehicles. While this is a frustrating time, consumers should be careful not to be misled by simplistic solutions that won't do much to ease high gas prices. No one likes paying more, but at the same time Congress shouldn't pass feel-good legislation that does nothing to improve the situation.

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