Senator Moynihan said the measure "represents a futile attempt to repeal the laws of supply and demand," noting that suddenly lower fuel prices would boost demand, driving prices back up in a tight supply environment. Thus, the government would deprive itself of transportation revenue, but motorists would see little, if any, sustained price change. Moynihan also said that, adjusted for inflation, Americans are paying less for gas now than in the 1980s.

The amendment, sponsored by Republican Senators from Michigan, Illinois, Texas and Minnesota, contained a provision to channel federal "surplus" funds into the Highway Trust Fund, but most Senators didn't buy it. Senators Lautenberg, Moynihan, Schumer, Torricelli and Lieberman voted against the measure. Senator Dodd was absent from the vote, but announced his opposition to gas tax suspension in a statement.

Among the Senate challengers in our region, New York's Rick Lazio has indicated support for federal gas tax reduction.

Lazio's opponent, Hillary Clinton, told the Journal-News in a recent interview that she didn't know what the best solution for Tappan Zee corridor congestion relief would be, but that as Senator, she would abide by the local decision and help win federal funding for it. She reiterated her opposition to federal gas tax repeal or reduction (see MTR #276).



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