Listen to “Politics May Prevent Relief at the Pump” on Spreaker.
State Treasurer Larry Pack wants to temporarily pause West Virginia’s gasoline tax. The 35 cent excise motorists pay on every gallon funds the construction, maintenance, and repair of the roads they drive on every day. A sensible, equitable tax linked directly to the need.
“It’s just a way to help working West Virginians. Most West Virginians drive about 40 miles to work and back, and if you’re making $50,000 or $60,000 a year, it’s tough. It’s stressful,” Pack said. “Again, just trying to give them some help. The state’s got the money, but where the money needs to be is in the pockets of our citizens.”
The conflict involving Iran — and the disruption of shipping through the Strait of Hormuz — has done what geopolitical turmoil always does to commodity markets: increase volatility.
Brent crude traded at $60.85 per barrel on January 1. By Tuesday, it had climbed to roughly $94 per barrel – off the $118 high – amid heightened concerns over escalating tensions in the region, news of Iranian responsibility for downing a U.S. helicopter in the Strait, and the correct and necessary retribution President Trump promised.
That nearly 55 percent increase creates pain not only at the pump, but throughout the economy. Higher oil prices generally translate into higher transportation costs, which ripple through supply chains and ultimately show up in consumer prices. Crude oil is also a direct input in countless products Americans use every day.
Against that backdrop, a temporary gas tax holiday becomes a reasonable topic for discussion. West Virginians are not seeing corresponding increases in their paychecks to offset rising costs.
Of course, there is another side to the argument. Concerns, including those raised by the Contractors Association of West Virginia, contend that suspending the tax would jeopardize ongoing efforts to improve and maintain the state’s roads. That’s a fair argument and ensuring this effort is not stifled is key to moving forward.
Pack says West Virginia has the money and one assumes that objections like those from contractors – not to mention motorists tired of replacing tires and rims – could be mitigated with the right agreement if money is not the issue and the cut is temporary.
But that policy debate may ultimately be secondary.
Politics is likely to take center stage.
The greatest obstacle facing Pack’s proposal may not be the merits of the idea itself. It may be the identity of the person advancing it.
Just as Democrats have struggled to gain traction on this issue, Pack could face resistance from within his own party, especially in the Senate. Not necessarily because the proposal is flawed, but because political considerations often outweigh policy considerations.
Pack is generally viewed as being more closely aligned with Republicans such as Senator Shelley Moore Capito and Senator Tom Takubo than with the Morrisey-Smith wing of the party. Could lawmakers put factional differences aside and rally behind the proposal? Certainly. But recent political history suggests that may be easier said than done.
Then there is the larger political reality.
Pack is widely considered a potential gubernatorial candidate should Senator Jim Justice decide against another run for governor. Pack has acknowledged on Talkline that he would be among Justice’s earliest supporters if Justice entered the race. He hasn’t committed to a potential gubernatorial run if Justice stays out, but the potential is there – money and political machinery would not be problematic.
If Pack is viewed as a potential future rival, some political observers would naturally question whether key players in state government, including Governor Morrisey, would be eager to hand him a significant legislative victory.
One wonders if Pack’s push for no tax on tips and overtime met demise – at least to some degree – for similar political reasons?
There would be additional policy and fiscal questions to answer even if the politics aligned. But the political hurdles come first (sadly), and experience suggests they may prove the most difficult to overcome.
Only the legislature and Governor Patrick Morrisey can prove that assumption wrong. Will they?