Dem Gubernatorial Hopeful Resurrects Gas Tax Debate

INDIANAPOLIS -- The gubernatorial race debate over giving Hoosiers a break at the gas pump is heating up again.

Democratic candidate Jill Long Thompson on Tuesday renewed a plea to suspend the state sales tax on gasoline as Gov. Mitch Daniels appeared to back away from considering the idea, 6News' Norman Cox reported.

Long Thompson stood across the street from a downtown gas station with a posted price of $4.15 and said Hoosiers could save from 20 to 28 cents per gallon if the tax is lifted.

"At a $50 fill-up, that would be about $3.50, which would buy a gallon of milk," Long Thompson said. "If you fill up twice in a week, you're talking about milk and cereals."

Drivers who 6News spoke to on Tuesday had mixed opinions about the idea.

"I think it's a quick fix. I don't really think it's going to make a lot of difference," said one motorist.

"That'd be wonderful. Any little help that you can do is wonderful," said another motorist.

A little more than a month ago, Daniels indicated that he might consider suspending the gas tax, but he was not available for comment on Tuesday.

A campaign aide told Cox that Daniels' response would be found in a new commercial released Tuesday, in an apparent reference to an ad that says, "We can't cut world gas prices, but we can cut property taxes."

Daniels' press secretary said that the governor doesn't have the authority to suspend the sales tax on gas.

Long Thompson appears to be in conflict with her party's presumptive presidential nominee, Sen. Barack Obama, who called gas tax suspensions gimmicky.

Long Thompson said her plan is different because she's seeking a sales tax cut. Obama was referring to Republican John McCain's plan to cut the federal fuel excise tax.

Long Thompson's plan would cost the state treasury about $120 million a year. She did not say how that revenue might be made up or how state spending might be cut to cover the cost.