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First Read is an analysis of the day's political news, from the NBC News political unit. First Read is updated throughout the day, so check back often.

Chuck Todd, NBC Political Director

Mark Murray, NBC Deputy Political Director

Domenico Montanaro, NBC News Political Reporter



Hillary and the gas tax

Posted: Monday, April 28, 2008 6:12 PM by Mark Murray

From NBC's Mark Murray
As we mentioned earlier, Hillary Clinton is calling for a holiday on the 18.4-cent gasoline tax, and she says she'd make up the funding from that (which funds transportation infrastructure) by taxing oil company's "windfall" profits.

But it's worth pointing out that Clinton OPPOSED efforts to cut or repeal gas taxes during her 2000 Senate contest against Rick Lazio. It's also worth pointing out -- as the RNC has for last several days -- that Obama supported a holiday on Illinois' state gas tax when he was in the IL Senate (although as PoliFact later noted that Obama voted against legislation making the reduction permanent).

Here's what Clinton said at her October 8, 2000 debate with Lazio: "[O]ne of my fundamental disagreements during this campaign with my opponent was when he called for the repeal of the gas tax. Now, the gas tax is one of those few taxes that New York actually gets more money from Washington than we send. And we are totally reliant on it to do things like finishing I-86 in the Southern Tier, or the fast- ferry harbor works up in Rochester, as well as the work we need to do here in the city. So you can count on me to support infrastructure."

And here's a June 28, 2000 Newsday clip: "Campaigning in the Hudson Valley, Lazio continued a two-day assault on Clinton's support of maintaining the 18-cent federal gas tax and then used tough rhetoric to declare that 'trust' and 'character' were campaign issues during an evening fundraiser in Manhattan that raised more that $1 million. Clinton, meanwhile, lashed out at Lazio's plan to repeal 4.3 cents of the gas tax, calling it 'a bad deal for New York and a potential bonanza for the oil companies.'"

"During a visit to a shopping mall in the Buffalo suburbs, Clinton said that 'the gas tax is one of the few exceptions where we actually get more money back than we send to Washington.'"

(Hat tip to Political Base.)

*** UPDATE *** Clinton spokesman Phil Singer tells First Read that Clinton's opposition to gas-tax reductions/repeals in 2000 was due to the fact that they would take money out of the Highway Trust Fund. Her current proposal -- as mentioned above -- makes up for any money lost by taxing oil company windfall profits.

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REPEALING the tax and taking a HOLIDAY from it are two different things!
This woman is a walking contradiction. Sen. Clinton, take some of your millions and seek psychiatric help, PLEASE!

OBAMA, 2008!
The US is heading into a recession, and this is a totally different period than 2000. Also, the entire country is being effected, not just New York.
Context is very important, and it will help if you understand the circumstances a little better before commenting on it.
Hillary gives people gas.
Gas was not $4 per gallon in 2000. You jerk off
Thanks for finally talking about an issue!
Taking tax money away from a Democrat is like taking candy away from a baby. They both scream and cry a lot when you do it.
How do you want to pay for roads...a toll...property tax...we need good roads but the oil companies are breaking all records on profit. Go after the oil companies to bring down the price of gas. A one day tax break for a couple dollars won't help. Hillary will take care of all this when she is president. She has a good head on her and will help us all.
A gas tax that will help consumers for a few days??? Exactly, who does that really help, Sen. Clinton??? Why is it that when you CLAIM to help the American people, I can see your pockets getting fatter??? Thanks, but no thanks.

OBAMA, 2008!
What's this?
Clinton again shown to be pandering to get votes?

Does this really surprise anybody?
Pitiful and pathetic, with a dash of insult to our intelligence.
Hillary = sham + mockery (shamockery)
Oh, so this is another one of HRC's "I was against it before I was FOR it"

Imagine that.

HRC: Hypocrisy at it's BEST.
Do you hear that Hillary supporters? Your candidate is just saying anything to get elected. Does'nt it matter to you that she tells lies. Or is it more important that her genitals are female, and her skin is pink?

You, and she disgust me.
What a joke.
Hillary just go home!

Obama for President!
So gas will cost less and people will travel more as a result of paying less, thereby increasing demand greater than supply which in turn raises prices.  Nice going Hillary, way to think out of the box!
Give me a break!

Reducing the gas tax and taxing the oil companies does nothing, since anyone who has taken first semester economics knows that companies just pass their costs onto consumers.  

And she thinks she has what it takes to run the country? Oh please...!
Take McCain and Hillary and shake them up in a sack and see which one falls out first.  I see according to the media this going to be one long freaking election year. Obama gets my vote no matter what happens PERIOD.
Gas tax should be 18.4 percent rather than cents per gallon and it should all be used to fund non-polluting means of transportation, not improving infrastructure that promotes its use.  It is the poison that is destroying our planet yet we want to un-tax it?  For the first time I am disgusted with a proposal by HRC!
Hillary 08 '' Alllllllll the Wayyyyyy...
I believe times have changed, and it goes far beyond the fact of having a chief thats female or male. Hillary has a good and fair head on her shoulders, and propositions she made in 2000 are EVIDENTLY bound to change as the times do as well. Its impossible for the public to agree 100% on a candidate, but atleast have the courtesy to respect candidates different from your own, that would be highly appretiated.
Hey Hillary, you want to cut our taxes - how about going to Washington DC and repealing all of the gas and oil subsidies that big oil is getting on our dime!
Pandering.   Shameless pandering.  Foolish shameless pandering.  I expect that from a "Steal and Spend" Republican, not from an intelligent candidate.  Not from a Democrat that has a chance of winning.  

Too calculating.  Promise the people relief, knowing it won't come.  Have you ignored the economists who point out that the price is set by supply and demand, and that cutting the tax has no guarantee of cutting the price.  Tie your gas tax holiday to a windfall tax that you cannot get past a Republican filibuster.   Shame Hillary.  Go home.
Why are you quoting her position 8 years ago?  What good is it now?  A good government public servant would change position according to the needs of the country and its population at any given time. Otheriwse, we have another King George W. Bush and his sidekick, Tricky Dick, in the office again who has no regard for us and our current conditions when making decisions.
The truth is that this would cost millions od dollars.  Let's give her argument some credit...if she does tax the oil companies who do you think they are going to get their money from?  I think that it's time for Obama.  The is no need for a band aid...we need a solution.  HilLIARy...please just go home.  
If gas taxes are repealed...demand will go up again...thus bringing the price back to where it would have been without the repeal.
Will  you put hilly out of the game asthet said six months ago to change thing what have they chaned. give abana a chance.and send wrigh home.
Wow! Taking profits from a legitimate business and giving it back to the people.

Sounds like communism to me.

Hell, let's take her money and give it to the people.
Everything is revisable for Hillary who confuses reality with the lies she tells.
This one is sad since it removes so little cost from the equation and deprives us of money to maintain roads.  It is dumb...which is why McCain likes it.  
If she is a serious person, which she is not, she would propose a windfall profits tax on oil companies retroactive to 2006.  But she is beholden to those vampires and will not.
Even her biggest economist supporter, Krugman, said that such a gas holiday is "pandering."  Wonder if Clinton will highlight Krugman's words on this one like she did on his words about her health care plan.  I'm guessing she won't, but hey why should consistency be a virtue in Hillaryland.
For sure we need to go after the oil companies.  But a tax holiday is only a bandaid.  Sure it sounds good in the short term, but will that mean that we will have to pay $6 a gallon at summer's end.  Clinton, Obama, McCain, I don't care.  WE, as Americans need to do something.  No elected official will. . . .
Obama is right.  A gas tax suspension would be bad for U.S. consumers and in the long run only perpetuate the extortion being exercised by the oil industry.

Basic demand theory tells us lower prices (a result from suspending the tax) will increase consumption. Consumption drives pricing and therefore, 18 cents off our gas price in May will only cause the total price of gas to climb faster as that marginal consumer chooses to drive a little more or buy the more inefficient vehicle. When the tax suspension is over in September, guess who won't be dropping their prices to accommodate the reinstated tax?!!

At least with prices where they are now, consumers will think a little harder about every gallon they use, and maybe reclaim some of their supposed negotiating power as the consumer.
Hillary has been very consistent on this issue.  She is only for the gas tax holiday if she can get the Oil Companies to pay for it.  She will not compromise our highway system and jobs associated with it for a tax holiday.  Unlike McCain who has not indicated how he would pay for it.

You people should really be more informed before offering any sort of opinion on the matter.
What a surprise, Hillary lied????????????? Tell me it isn't so!!! The real story will be when Hillary actually tells the truth about something

What about Peter Paul vs Clinton trial?

Obama 08
Here is the problem with a gas tax "holiday".  The gas tax does two things: (1) fund roads and infrastructure, and (2) create an artificial "cap" on the price of gas.  The first function of the tax is obvious, so let's focus on the second.

The higher the price of gasoline, the less people will (in theory) drive: classic supply/demand behavior.  In Europe, taxes are extremely high,  and this helps curb the demand to use it.  Here, they are lower, but still can be significant.

Companies can only sell gasoline for a certain amount.  It can raise over time, and can raise fast, but can only raise so much.  If we wanted to raise the taxes on gasoline, for example, we could only do it slowly to help the economy absorb it.

I seriously doubt anybody who is filling their tank is saying "bleepity-bleep feds, taking 18 cents of this gallon!"  To you, gas is just $3, or $3.50, or $4.  Before these proposals were floated, I doubt 1 person in 100 even knew how much the federal gov't was taxing it.

So, if you suddenly drop prices by 18 cents a gallon, it will be seen as a "hooray", but in reality, they won't drop 18 cents.  That 18 cents has been mostly accounted for by us, and the oil companies know it.  There will be nothing to stop them from, say, raising their price by 9 cents a gallon.  Thus, you only save 9 cents.  We "all win" in this theory.  Gas prices went down, and oil companies got richer.

The only down side is, um, bridges fall down more often and roads don't get fixed, so in reality, we as the public don't actually "win" anything.

It's not enough to say "raise the taxes on those evil oil companies to pay for it!"  (HRC's proposal) If their taxes go up, how do you think they will pay for it... by RAISING THE PRICE OF GAS!  Until, in the end, an equilibrium is reached.

There is no good solution here.  Stupid election year tactics like "tax holidays" are just that.  STUPID.  Don't be fooled, people.  This is incredibly painful, and what the oil companies are doing is morally reprehensible, but you can't change it.  (They can't claim they are paying much higher prices, because if this were the hard truth, their profits would be flat during this).  This pain is actually necessary.  Because now, alternative fuels become more cost competitive.  Naked greed like this will eventually come back to bite them.
Hillary you little pander pup...the same people whining about gas prices drive trucks or SUV's, have cell phones and digital cable...they ain't hurting they just don't want to make choices...
Oh, I'm sorry. I thought you were talking about McCain's holiday tax relief proposal...huh...HRC sounding like McCain? Sounding more and more like the only one running for the Dem. nomination is Obama.
You have to think about what a Gas Tax holiday will really do. When you look at it, the answer is nothing.

Will this save people a significant amount of money? No, this would only have about 5% savings.

Will this do anything to lower the price of gas? Maybe, gas will still cost 95% of what it would without it, and nothing stops the gas companies from raising prices to what people would be paying with the gas tax anyways. So, people may pay just as much at the pump as they would with the tax.

If you think about it, suspending the gas tax is just more of politicians attempting to distract people with useless things which sound nice rather than actually working to solve problems.

I think that it's best to focus on solving the real problem than the usual throwing a cute cartoon band-aid on a someone who has cardiac arrest.
The windfall profits tax would lead the oil companies to increase gas prices to maintain their profit (last time I checked the the demand curve for gas relatively inelastic).

So she giveth with one hand (price decrease due to removing the tax), and taketh away with the other (windfall profits tax).
Repeal the gas tax and what do you have,no money for bridges or roads, with thousands of condemmend bridges in this country do you really think its a smart move do you really want your kids riding the buses over them.Think its time people started using what the good Lord gave them rather than letting some carpetbagger do their thinking for them.
I'm an Obama supporter, but I'm fair enough to say that there is no story here. She was for infrastructure in both cases, but now she's proposing the $$ come from oil company profits instead of the gas tax.  

What saddens me is how many of you automatically accept that it proves your world view just because MSNBC wrote a story, when in fact any fair reading of this shows that this is just media in search of a story, just like the non-stories of flag pins, Reverend Wright, etc.

Let's get to the real issues.  Will this help the economy or not?  That's a real issue.  Her vote as a NY Senator on an only tangentially related issue is a fake issue.
This gas tax suspension is ridiculous. It doesn't save consumers real money (maybe less than $30 over the summer) and it will take away from the Highway Fund which is there to improve infrastructure. Senator Obama is looking ahead and isn't simply voting for something that sounds good as a sound bite. Senator Clinton and Senator McCain are doing just that.
Gas taxes should be raised to $1.00 per gallon and all of the money should go into mass transit systems.  Why repeal gas tax at all to encourage people to drive?  This is backwards thinking.  We should be discouraging people to drive and providing other means of transportation.  When is this country going to wake up?!
How naive can the Hillary detractors be? I suspect it's nothing more than a stubborn "mindset".  New York state 2000 and USA 2008 is like comparing apples to brocoli in terms of gas taxes, not to mention other things. The time has long gone by when subsidies to oil companies be stopped and that they be fairly taxed. Hillary's recent comments on gas taxes are most certainly in line with our current gas price situation.
If you earn 20 dollars an hour, do you think they should cut taxes on the people who make 10 an hour because you profit more.  Come on people.  If you run a succesful business that already payed googles in tax money, you would not want the feds coming after your profits.  Wake up America.  Nobody cared about the oil companies when they were losing money in the 80s.
Suspending the federal 18.4-cent-per-gallon tax would save the average motorist about $28. But the plan would cost the government $9 billion in lost highway funds and put at risk an estimated 300,000 jobs tied to the funding, according to the American Association of State Highway and Transportation Officials.
This at a time when the Highway Trust Fund, which bankrolls local and state road and bridge projects, is already facing a $3.4 billion deficit.

We could borrow from the general fund to make up the shortfall, but doing that would just add to the federal deficit.

Placing a "windfall" profits tax on the oil companies makes little sense because the savings will only amount to a small fraction of fuel costs to the consumer.

Using the money from such a "windfall" profits tax to actually attack the root of the problem is a better idea. An idea Senator Obama has talked out. A Manhattan style project to seek an answer to Americas increasing renewable green energy needs.

Wait, you're kidding me - oil companies make profits in the free market?  Why, we just ought to tax the bejeebers out of their windfalls.  That'll cause them to want to reinvest in infrastrucuture, find new reserves, expand market capacities...

I live in Indiana - I can't wait to vote AGAINST Hillary Clinton next week.  Is this desperate egomaniac the best that we can do for world leadership?
this is the stupidest thing i have heard yetlets look at the math shall we
oil company cost plus profit = 3.82 a gallon
state gas tax=                 .18
price at pump=total            4.00 a gallon
3.82+.18=4.00
under hillrods plan the tax goes away from the consumers side and reappaers in the oil companys side
4.00+0= 4.00
i give her an A for talking about issues but she gets F for knowing less than mccain
In 2000, it wasn't costing me over 50 bucks to fill my car. Every week I work almost a half day just to pay for the gas that it takes me to get to work for the rest of the week. Right now, for my husband and myself, our auto gas is our third biggest expense only after our house payment and groceries. We don't drive SUVs and we try not to go anywhere but what we have to.
Repeat, a gas tax holiday does nothing except punish the consumer!  Where do you think the income will be derived from if the Oil and Gas Company's have to pay more tax!  Do you think their shareholders, many which are seniors which have O&G components in their retirement funds will just say:  "Ok, what the heck, let's do this for the good of all"!  What will happen is that the prices for fuel WILL rise, and worse, re-investment in exploration and other fields, including renewable, will fall.  So, who ends up paying for the holiday?  And what happens after the holidays ends?  Will consumers use less fuel during the heavy demand months of summer if prices are fixed, or will they use more?  Now, what happens when you use too much of a limited product?  Exactly, higher prices!  If you really want lower prices, if consumption and buying SUVs is more important that reducing usage or obtaining renewable fuels, the there is only one option:  Nationalization!  Do any of you honestly think, with the amount of money the O&G lobby's shell out in Washington that they would go willingly in surrendering their Company's.  Is America going down the road taken just recently by Venezuela?  Won't happen!  So take this whole gas tax hyperbole as it is.  They were using it eight years ago, and their still using it now, yet the price of fuel is still rising.  Why do they use it, why do they use this issue?  Because they know gullible people swallow it up.  If you want to see your Government address raising fuel prices, then stop invading foreign countries, and punish the speculators and hedge fund company's that have almost single handedly been responsible for a very large chink of the current price increases!  And the next time an environmentalist start screaming about opposing a new refinery because of some owl, or grass, then realize that this too, by restricting supply, directly hits your pocketbook!
Ahh, all of a sudden the Obama supporters are against a REGRESSIVE tax repeal for the summer?

Help me out with this with one, the hardest hit by rising gas prices are poor people driving to work.


Obama opposes this?

Umm. I need more help.




By the way, Obama surrogate Jeremiah Wright was as always hilarious today. I think he said an attack on him was an attack on black churches.

Wright...

"AmeriKKKa"

"9/11 victims deserved to die"

"The government infected blacks with AIDS"

"Hillary Clinton will never know what it is like to be called a N word"















So, Mr. Wright... this is the black church? That's odd, I didn't know the word of Christ was hate, anger and an ego that will ultimately land him a book deal.

Funniest thing was when he said at the end that he wanted the VP slot with Obama.

Ahh, Obama. You became a Christian for political purposes. You don't go to church, as apparently none of the infamous Wright soundbites were spoken when you were there.

Even Wright dissed you today.









All too funny.






http://www.huffingtonpost.com/taylor-marsh/obama-grandmother-typic_b_92601.html




"... .. The point I was making was not that my grandmother harbors any racial animosity. She doesn't. But she is a typical white person who, uh, if she sees somebody on the street that she doesn't know there's a reaction that's been been bred into our experiences that don't go away and that sometimes come out in the wrong way and that's just the nature of race in our society. We have to break through it..." - Senator Barack Obama

Can you imagine if Hillary Clinton said someone was a "typical black person?"

Seriously, Barack Obama basically called all white people racist. You know, because when us typical white folk walk down the street and see an African American coming our way we run to the other side of the road.

Is this guy kidding? Back in the late 1970s, early 1980s, I lived on 95th and Columbus in New York City; long before it went chique. I took a subway from 42nd Street to get home after working on Broadway late at night. I walked home from the subway alone. I rode with African Americans, walked down the street past midnight in an area that wasn't near safe, with African Americans walking beside me and behind me. I'm a whitey white Scots-Irish broad and I was never afraid of an African American coming towards me, and never once crossed the street.

In an update, Obama's spokesperson elaborated, but it didn't help:

UPDATE: We gave the Obama campaign a chance to respond to this post. "Barack Obama said specifically that he didn't believe his grandmother harbored any racial animosity, but that her fears were understandable and typical of those often shared by her generation," said Obama's PA spokesman Sean Smith, who added that Grandma is 86-years-old. He might have meant that specifically, but that isn't what he said, especially as he spoke of his grandmother, Madelyn Dunham, in the present tense. ... ..
It's becoming more apparent why Senator Obama didn't leave Rev. Wright's church, as well as continued his relationship with him. The truth is that racism works both ways and some of us blue collar folks don't appreciate being called racist by someone who has his own problems with race he is obviously in denial about.

*************************************




Way to stick up for racist values, Barry Obama... your grandma is proud of you.

Liberals for Hillary that WILL vote McCain if Obama is the Democratic nominee.

Liberals against racist Democratic candidates.

NOBAMA

NORACISM

2008


All too funny, Obama hates white people and poor people.

Now that is a change for politics, definitely goes against the status quo.

Obama is like a little tiger cub venturing out with a thousand hyenas ready to pounce on him and in defense he will try and growl a speech. Can't wait for a possible Obama and Wright Democratic ticket.

Hilarious. As always, thanks Barry Obama and Jerry Wright. Funny stuff.


No wonder he doesn't want any more debates, he is a motivational speaker not a presidential candidate.

Obama, grow up and debate... little kitty.

It's Economics 101. Eliminating taxes only sends the greatest portion of the savings to big oil companies, just like raising taxes on gas pushes some of the cost to the consumer and some to the corporation. That's the reason Obama back-tracked in Illinois.  He saw it didn't work - consumers did not benefit.  Here's an idea.  Lower the speed limit.  Better yet, just slow down. When do we take responsibility for ourselves?


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