The leader of the State Senate Transportation Committee insists a gas tax holiday is exactly what New York needs.

State Senator Thomas Libous says gas prices are too high and its hurting the economy.

He's among the Republicans who want the state to suspend its 32 cent tax on gas for the summer.

Libous the state would lose about 400 million dollars.

But, he says the transportation budget has billions and projects would still get done.

He says "Would we rather have the money, yes. But if it means giving it back to the hardworking taxpayers because they need a tax holiday, you know, I think we can afford it for the summer, probably can't afford for too much time after that though."

He acknowledges a tax holiday is only a short term solution.

The State Senate has passed the proposal.

Libous says he is disappointed Governor David Paterson and the Democrat controlled State Assembly are not backing the tax holiday.