Press Release

GAS TAX HOLIDAY WILL ONLY MAKE MATTERS WORSE
High pump prices are a complicated problem, call for smart solutions

ELIZABETHTON -- A gas tax “holiday” over the summer is bad economics that will do little good for the Tennessee motorist, U.S. Senate candidate Mike Padgett said Monday.

“With vacation season coming up, Americans will feel like they can drive more,” Padgett explained. “But basic economics – supply and demand – tell you that more consumption will drive prices even higher and wipe out any minor savings. That helps no one but the oil industry here and abroad.”

Senator John McCain first floated the idea of a removing the federal gas tax over the summer as a way to relieve pressure on the household pocketbook. But economists have roundly panned the proposal, saying it will push up demand and prices.

“I know Tennesseans need relief from high gas prices. I hear about it each and every day as I visit their counties.

“There are no quick fixes to this problem. We didn’t get into this overnight, and we won’t get out of it overnight. It’ll require tough decisions.

“Let’s start with the money we’re doling out to the oil industry in tax breaks – the billions that Senator Alexander is so fond of protecting.

“We could spend that money instead on grants, incentive packages and tax breaks for companies that will develop alternative energy, that will build engines that burn less gas. The technology already exists. It’s just a matter of getting money to the AMERICAN innovators who will turn it into reality.

“And we can create jobs – good-paying jobs right here at home – along the way.”

“We are the nation that produced Henry Ford and Bill Gates, and we know better than any society on the planet how to innovate. And if we’ve ever needed that innovation, we need it now.

“If Tennesseans will stand with me, I am committed to solutions for the long haul, not just a summer quick fix.”

William "Mike" Padgett is former Knox County Clerk and small business owner. He and Patty, his wife of 37 years, have three grown children, Matt, Mark and Sara Beth

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