Gas tax politics

Posted: Tuesday, April 29, 2008 9:22 AM by Mark Murray
Filed Under: White House, 2008, Clinton, McCain, Obama

The New York Times front-pages, "Clinton lined up with Senator John McCain, the presumptive Republican nominee for president, in endorsing a plan to suspend the federal excise tax on gasoline, 18.4 cents a gallon, for the summer travel season. But Senator Barack Obama, Mrs. Clinton’s Democratic rival, spoke out firmly against the proposal, saying it would save consumers little and do nothing to curtail oil consumption and imports.”

“While Mr. Obama’s view is shared by environmentalists and many independent energy analysts, his position allowed Mrs. Clinton to draw a contrast with her opponent in appealing to the hard-hit middle-class families and older Americans who have proven to be the bedrock of her support. She has accused Mr. Obama of being out of touch with ordinary Americans who are struggling to meet their mortgages and gas up their cars and trucks."

The Washington Post’s fact-checker weighs in on the matter. “The advocates of a ‘gas tax holiday’ are exaggerating the benefits to consumers from their proposal. If the Illinois experience is a guide, there is likely to be some reduction in the price of gas, but it would fall well short of the size of the tax reduction. In order to pay for the tax cut, the government would have to cut back on highway construction and maintenance or find some other way of plugging the shortfall in revenues to the Highway Trust Fund.”

Meanwhile, NBC’s John Yang reports that President Bush will hold a news conference today in the Rose Garden at 10:30 am. He will deliver an opening statement (approximately eight minutes long) regarding Americans’ understandable anxiety about issues affecting their pocketbooks. He will also call upon Congress to send him sensible and effective bills that will help Americans weather this difficult period and keep our country moving forward.

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Comments

While tax holiday's have proven to be bonus days for consumers and is popular politically, it only offers a short term solution to a long term problem. Liberals have always hated cutting taxes and with the possibility of a even bigger liberal congress, this idea is only short term. With Liberals like Charlie Rangel and John Murtha ready and waiting to punish the American taxpayers even further with increased taxes that will hurt the poor and middle class, one has to wonder how long until the next American Revolution

jerry/corpu christi texas (Sent Tuesday, April 29, 2008 9:33 AM)

Face it...

It's a great idea in politics to have the Gas Tax Holiday.

Economically, it would be a disaster.

The price drop would be temporary and artificial.

Pete - Albany, NY (Sent Tuesday, April 29, 2008 9:38 AM)

"The advocates of a ‘gas tax holiday’ are exaggerating the benefits to consumers from their proposal."
****************************************************

Short-term solution. Long-term problem.

More empty rhetoric from political candidates folks.

http://thepajamapundit.com/

the Pajama Pundit (Sent Tuesday, April 29, 2008 9:43 AM)

HRC and NcSame agreeing again.

They BOTH voted for the WAR and now they both want gas tax cuts.

And don't forget, HRC was "AGAINST gas tax cuts before she was FOR gas tax cuts."

Another one of her flip flops.

Oh well, doesn't matter.

We only have to wait until June and she will be FORCED out of the race, and Obama will continue to have MORE delegates, MORE votes, and MORE states. His win in North Carolina will take away any gains she made in Pennsylvania, and Indiana will be close, with no potential gains for HRC.

So, we just patiently wait until June.

THANK GOD.

Obama 08 (Sent Tuesday, April 29, 2008 9:43 AM)

Pandering at its finest. It will save people $30 on average, about $1 a week. Nothing but pandering. It will take $9 billion from the highway trust fund which is already horribly low on funding. If not replaced it will make our infrastructure worse and cost a lot of construction jobs.

McCain and Clinton's funding answers don't work. McCain wants to borrow from the general fund which is already massively in debt, and Clinton wants to tax oil companies. While Clinton's arguement sounds good, it is fluff. The oil companies will simply pass the cost on to us. So Clinton will reduce the tax 18 cents, and oil companies will raise their prices 18 cents and we are right back where we started. Nothing but pandering.

BL, Cincinnati OH (Sent Tuesday, April 29, 2008 9:45 AM)

A tax holiday merely means the gas stations dont need to charge the federal tax of like 18 cents a gallon. Doesn't mean they have to pass the savings onto the customer. And, the cost of losing more than $10 billion tax revenue to the Federal gov't is more than any possible savings the tax holiday would provide. Thus, I agree 100% with Obama on this issue....note, I'm a Hillary supporter.

Pat Huntington NY (Sent Tuesday, April 29, 2008 9:49 AM)

My preference (and I do a lot of driving) is for longer term solutions that reduce or dependence on oil and foreign oil. I don't need the short-term easy fix if its going to distract from the greater effort and if its going to cause construction workers (and other affected) to lose their jobs. I'll forego the savings of my (maybe) $50 to assure that people keep working and roads get fixed.

But of course, we know that pandering wins elections.

Let me know NC and Indiana voters, that you're smarter than that. I have faith :).

Obama for our best future 08

Lisa, New Britain, CT CT for Obama (Sent Tuesday, April 29, 2008 9:49 AM)

PLEASE REPORT THIS

http://www.huffingtonpost.com/2008/04/29/clinton-booster-organized_n_99129.html

Nj (Sent Tuesday, April 29, 2008 9:51 AM)

McBandAid....strikes again...

BJ, CA (Sent Tuesday, April 29, 2008 9:53 AM)

Hillary is now talking about China and how bad they are!!!! Doesn't she know that the media and people know that China is a great supporter of the Clintons and gave Bill Clinton millions for his library???? How many more lies can she tell!!!!!

Maggie (Sent Tuesday, April 29, 2008 9:54 AM)

Hillary's (and McCain's) gas tax holiday will not lower the price of gas!

Basic economics: Reducing the price of gas by 18 cents a gallon will increase demand. Because only demand has increased, but not supply, the price of gas will go up again promptly. This time, the increase will go into the pockets of the oil companies, while the U.S. gets shorted the 18 cents it used to collect for infrastructure expenses.

The only real ways to lower the cost of driving are: increase supply (won't happen), drive a car that gets better mileage (would work), convince OPEC to sell us their oil for less (gotta be kidding), drive less or slower or in carpools (could help), impose price controls (anyone who promises that is lying).

Hillary has promised everything except that she'll come to your house and do your dishes and laundry for you.

Let me say one thing about Hillary's long litany of promises: if it sounds too good to be true, it probably is.

Can someone tell us the truth, and stop manipulating us with empty promises?

DanKav, Los Angeles (Sent Tuesday, April 29, 2008 9:54 AM)

McBandAid....strikes again...

He does not even see the artery being cut...

McShame on you...

BJ, CA (Sent Tuesday, April 29, 2008 9:56 AM)

This is an article from "The American Prospect" by Dean Baker, Co-Director of the Center for Economic Policy Research in Washington, DC.

"The NYT Allows Senator Clinton to Lie to Hard-Hit Middle-Class Families and Older Americans

Senator Clinton joined Senator McCain in calling for the temporary elimination of the 18.4 cent a gallon gas tax over the summer. While the article notes that, "environmentalists and many independent energy analysts" share Senator Obama's view that the elimination of the tax would save consumers little, it still asserts that, "his position allowed Mrs. Clinton to draw a contrast with her opponent in appealing to the hard-hit middle-class families and older Americans who have proven to be the bedrock of her support."

Actually, almost all economists would agree that the tax cut proposed by Senators Clinton and McCain would save consumers nothing. With the supply of gas largely fixed by the capacity of the oil industry (they claim to be running their refineries at full capacity), the price will not change in response to the elimination of the tax. The only difference will be that money that used to go to the government in tax revenues will instead go to the oil industry as higher profits.

If Senator Clinton is able to use this proposal to draw a contrast with Senator Obama in expressing concern for middle-class families it could only be attributable to the extraordinary incompetence of the reporters who are covering the campaign. While typical middle-class families may not have the time and background to realize that Senator Clinton's proposal would not save them any money, reporters do.

The fact that Senator Clinton, like Senator McCain, sought to deceive them with a bogus tax cut should have been the main theme of today's election reporting."

Blake, Denver, CO (Sent Tuesday, April 29, 2008 9:56 AM)

"Meanwhile, NBC’s John Yang reports that President Bush will hold a news conference today in the Rose Garden at 10:30 am. He will deliver an opening statement (approximately eight minutes long) regarding Americans’ understandable anxiety about issues affecting their pocketbooks."

...as if he has any solutions. Remember, this is the guy who had no idea that economists were predicting $4 per gallon for gas this year!

"He will also call upon Congress to send him sensible and effective bills that will help Americans weather this difficult period and keep our country moving forward."

...of course he will ask for Congress to send him the bills because he has no clue what to do otherwise!

Pete - Albany, NY (Sent Tuesday, April 29, 2008 9:58 AM)

Jerry, when is your right brain going to start listening to your left brain? The logical part of you suggests Obama is correct but the emotonal part of you says you hate all "libruls." The Republicans are trying to make tax cuts for the rich permanent, but you insist the poor and the middle class will suffer. You are a walking contradiction.

Amy B Portland, ME (Sent Tuesday, April 29, 2008 10:01 AM)

Hillary won her NY senate seat in the 2000 election by opposing a gas tax holiday.

When will the media do their job and point out Hillary constantly changes her position?

Juanita, TX (Sent Tuesday, April 29, 2008 10:02 AM)

Somebody's got to pay for the gas holiday---a deficit, bigger taxes later, or cuts in services. Let's start thinking like adults here, people! Stop dreaming fairy tales and childish fantasies.

Class Warrior, D.C. (Sent Tuesday, April 29, 2008 10:03 AM)

Does it resonate with anyone else that Hillary is mimicking McSame's position on this one? She didn't come up with the windfall profits tax to pay for the gas tax cut until Obama pointed out that hers and McClueless's position would cost HIGHWAY CONSRUCTION JOBS. Pander Bear Hillary, indeed.

Carrie in Texas (Sent Tuesday, April 29, 2008 10:04 AM)

I think that Irasq should be paying for the gas shortage, they have the gas AND THAT IS THE ONLY REASON THAT Bush WENT TO WAR OVER THERE, OTHER THAN THEY KICKED THE OLDER BUSH ASS WHEN HE TRIED.

A gas tax releief will onlt hurt us in the long run.

Don`t you people rememeber the bridge that fell down with all those people on it?
When we take away from our roads this is what happen. What needs to be done is for Iraq to pay us back for the LIVES lost and the JOB that the American people have done for them the past 7 years.

They need to foot the bill for this war as they have the means to do so.
We are spending far, far, far too much for a war that should have never been.

Make the Iraqians put gas in our tanks we have earned it.

Obama is right once we do this gas tax thing, we will regret it.

Go Obama '08

BIGOLDTEXAN (Sent Tuesday, April 29, 2008 10:05 AM)

Thank You for truth on the disasterous happy "holiday tax break" scheme!

RUSTinPA (Sent Tuesday, April 29, 2008 10:05 AM)

It was T-Ball questions to David Axlerod by Chris Matthews yesterday.

Earlier in the program he did manage to get a cheap shot on Clinton, a real non sequitor.

In fact yesterday was Obama spin on MSNBC.

Fred C Dobbs Sierra Madre, CA (Sent Tuesday, April 29, 2008 10:05 AM)

Clinton is playing politics with this to court the uneducated (her core support) while Obama refuses to play that game, opting instead for a well-reasoned approach to the energy crisis. Obama's biggest problem is that he has underestimated the ignorance and racism (they go so well together) of a large part of our population - although he IS leading! This is why EDUCATION must be given the highest priority for America - it is the ONLY solution to ALL of our problems. We cannot have Joe Six Pack (whose opinions are based upon sound bites which play upon race, or flag pins) running the country.

Jack Hussein Donovan (Sent Tuesday, April 29, 2008 10:06 AM)

I agree 100% with Obama. The gas tax holiday isn't going to fix the high price of gas for us. It's like putting a bandaid on a hemorrage......that's not to work either. WHY is it so close in Indiana? WHY can't people see that Obama is the way to go and that Hillary isn't any better than what we currently have going on in Washington? If people truly wanted change, this primary wouldn't even be close! Obama represents the biggest change we could ever hope for; Hillary represents lies, scandals and the same old politics of forever! Go Obama, '08!

Diane from Illinois (Sent Tuesday, April 29, 2008 10:08 AM)

Of course a tax holiday would only be temporary, hence its name 'tax holiday'. In the short term the tax holiday will help consumers but is only useful if a windfall profits tax is imposed on the oil companies, temporarily also. In the long run we need to reduce our oil consumption and use other sources of energy.

Kyle (Sent Tuesday, April 29, 2008 10:08 AM)

I'd actually be interested in what P. Krugman has to say on this topic. Does he line up with his girl on this one, or take the more liberal but less pander approach?

Nicholas: Minnesota (Sent Tuesday, April 29, 2008 10:13 AM)

Billary, exaggerating? Noooo...

Thanks, Bushie, for understanding my pocketbook woes. As if.

MI Chick (Sent Tuesday, April 29, 2008 10:15 AM)

Senator Clinton is pandering to the people of Indiana and N. Carolina on the gas tax issue. Rather than suspending the tax and risking further erosion of our highways and bridges, she should stop taking Oil Company contributions. That would allow the Oil Companies to reduce their costs and not need to charge as much for our gas!!!!

Thomas, Phoenix, AZ (Sent Tuesday, April 29, 2008 10:22 AM)

http://twocanpete.blogspot.com/
Take the money from Iraq and build windmills which can be used to create electricity and hydrogen to power our cars. We need a permanent holiday for the gas tax!

twocanpete (Sent Tuesday, April 29, 2008 10:23 AM)

The "gas tax holiday" is the equivalent to putting a band-aid on knife wound. The blood will keep flowing until someone seriously addresses the cut. The United States has been stuck by the MIddle Eastern countries who hold a monopoly on the price of oil and cut by the U.S. corporation who refuse to change the status quo of operation. The cut is too big and too deep to simply put a band-aid on it and hope no one will notice while the roads remain unpaved and more bridges collapse. Let talk about "real solutions" Mrs. Clinton to our real problems. The McCain/Clinton plan is simply politics as usual: A clever way to pull the wool over the eyes of the American people while the problem stays a problem.

Matt Freeman, Castro Valley, CA (Sent Tuesday, April 29, 2008 10:25 AM)

The gas prices will go back up, what we need are real solutions not politicians thowing the public a 'bone'to get elected.

shirley, san jose, ca (Sent Tuesday, April 29, 2008 10:29 AM)

Do the math, folks. Depending upon the vehicle you drive, this sham would save you between $24 and $40 for the entire summer. 18.4 is maybe a 5% decrease in the current pump price, which is negligible. But the sum total is to take $10 billion away from the funds needed to maintain a crumbling infrastructure. This is just another cheap campaign tatic being applied by old-school politicians trying to buy votes.

Bill, Corpus Christi, Texas (Sent Tuesday, April 29, 2008 10:31 AM)

Let's see Sen. McCain explain the tax cut this summer at the convention, in the shadows of the I-35 Bridge collapse. Cutting funding for road repair? This ought to be good - with VP Minn Gov Pawlenty at his side. good policy!

marlin, mn (Sent Tuesday, April 29, 2008 10:31 AM)

Why not allow everybody to use public transportation free for the time period. Would help middle class, help the enviroment, reduce fuel consumption. It would also allow people who have never used it to see how they can reduce their budgets by getting down to one car instead of two. Fed's would reimburse cities.

tj dallas, tx (Sent Tuesday, April 29, 2008 10:32 AM)

Economists agree it's STUPID!
Honestly...why do we give the oil companies subsidies to research alternative energies?
When have they come up with something for all of us? An alternative to being indebted to the middle east who strangle holds the world oil market?
We should TAX the crap out of them for these record setting profits!
Lower the price..have less profit = less taxes on the company..basic and simple..
Thing is..no one is smacking the futures people who are driving up the barrel prices..
Too much money is going to too little people ..
Though I am sure the current admin officials after serving office will have made plenty of money on oil.
They may have had to transfer control of shares while being in office..I am sure their gain will be tremendous.
Everyone screams taxes are unfair..
However, they are a necessary evil we must all live with..
I remember in 1979 when Jimmy Carter gave a solid speech on conserving energy and had a plan for becoming more independent of the foreign oil..
He made them turn off lights..we saw the gas shortages..we survived..but they never listened..
Last year GW Bush gave a similar speech..
Apparently the message is still the same but we never talk enough about it...
The middle east with it's oil fields has the world at it's beck and call..
We need alternatives which have been smothered by big oil..
We need more solar , wind and water energy..we need those electric cars back...
We need to wake up to how we are being held hostage by big oil...and our government helps them by giving them subsidies that show for nothing.
Gas Holiday indeed...

Goddesscon2001, Chicago (Sent Tuesday, April 29, 2008 10:36 AM)

Another Clinton waffle......what won't this women do to win?

beverly Wilson, Los Angeles, CA (Sent Tuesday, April 29, 2008 10:43 AM)

NATIONALIZATION of the industry is the only thing that will work. We have managed to give regulation ofthat crutial industry to a group of people who have turned into criminals. There is no possible way we can expect them to all of a sudden give something away out of the kindness of their hearts. We need to take it away and reorganize for the benefit of the people. Fat chance!!

Pacheck, Huntington Beach, Ca. (Sent Tuesday, April 29, 2008 10:45 AM)

nothing right now is going to help, all of this is just talk and we keep going further under....what you think you will save has long gone, because the situation keeps getting worse while this do nothing congress does nothing.....Its politics at its best...I think the politicians should be in the food lines and shelter..But you know something that would help either....Until the American people rise up it will remain politics as usual.......

Russell Fox (Sent Tuesday, April 29, 2008 10:46 AM)

nothing right now is going to help, all of this is just talk and we keep going further under....what you think you will save has long gone, because the situation keeps getting worse while this do nothing congress does nothing.....Its politics at its best...I think the politicians should be in the food lines and shelter..But you know something that wouldnt help either....Until the American people rise up it will remain politics as usual.......

Russell Fox (Sent Tuesday, April 29, 2008 10:47 AM)

18 cent gas savings. 18 cent tax on the oil companies. To compensate for the tax, companies raise gas prices 27-36 cents.

Hillary, you are an idiot.

wrongnow (Sent Tuesday, April 29, 2008 10:50 AM)

"With Liberals like Charlie Rangel and John Murtha ready and waiting to punish the American taxpayers even further with increased taxes that will hurt the poor and middle class, one has to wonder how long until the next American Revolution"

What about the punishment the republican majority laid on the american taxpayer? You know the borrow and spend republicans never want to pay their bills, no wonder so many of them are losing their homes and shirking their other debts and obligations, the party taught them to do it

Ralph, Texas (Sent Tuesday, April 29, 2008 10:53 AM)

Hillary Clinton has become so pathetic to align with McCain.

She is becoming a disgrace to the Democratic Party.

Paula, Seattle, WA (Sent Tuesday, April 29, 2008 11:07 AM)

Funny you Obamabots forget Obama was for a similar gas tax holiday when he was "playing" senator.

FREE AND THE BRAVE (Sent Tuesday, April 29, 2008 11:08 AM)

Why don't you report on this.
If she is nominated, you know the RNC and McCain will:

http://thehill.com/leading-the-news/clinton-2.3b-in-earmarks-2008-04-28.html

concern citizen (Sent Tuesday, April 29, 2008 11:23 AM)

This is the worst idea anyone can come up with. While it will be a temporary relief, gas prices will be at $6 a gallon when the tax is put back. Please do your homework and research what the impact of this will really be to the middle and lower class income. This is another Hillary spin will no real relief for the working class.

Christine, Connecticut (Sent Tuesday, April 29, 2008 11:24 AM)

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