ABOUT FIRST READ

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 Political Researcher



Why gas tax holiday could be appealing

Posted: Sunday, May 04, 2008 10:21 AM by Mark Murray
Filed Under:

From NBC/NJ's Aswini Anburajan
LA PORTE, IN -- Leaving a Bill Clinton town hall Saturday evening, I stopped at Family Express (a local Indiana chain) to fill up my tank to the tune of $3.69 a gallon. I patted myself on the back for finding a bargain. It costs about sixty dollars give or take to fill up the little Mazda rental car I've used to zip across this state, logging anywhere between 100 to 400 miles a day. The least amount I've paid for gas is about $3.63. The most? $3.77 on I-65 heading south into Louisville.

While the meter on the pump was whizzing upward, I went inside to buy a cup of coffee. And as I headed to the counter to pay, a man slipped in front of me. He was older than me, maybe in his late forties, and he wore faded loose blue jeans, a black and white windbreaker, and sneakers. He had the only other car at the station, a little red sedan. He came forward to the clerk, and said, "I'm sorry to have to do this to you."

And he plunged his hands into the pockets of his jeans and pulled out fistfuls of change, which he unceremoniously dumped on the counter. Pennies, nickels, quarters -- you name it -- was there. The clerk was mad and grumbled something like, "Come on." The man just looked out the window at his car and asked to pre-pay for $5 of gasoline. Five bucks at this station gets you less than a gallon and a half of fuel.

Now obviously, I know nothing about this man. As a reporter, I didn't chase after him asking if he was hard up and was this the only way he could pay to fill his tank. But the image of him pouring change onto the counter struck a chord. Maybe it's because my parents used to drive eight to ten miles out of the way just to save five cents on a gallon of gas. Or maybe because I haven't had one conversation with my mom in recent months, where she doesn't mention how expensive it is to drive somewhere. A few years ago she decided to splurge on an SUV and deeply regrets the decision. I have a feeling she's not alone.

To bring this back to politics, watching this man in the gas station, thinking about my own parents, I finally understood why a gas tax holiday could be so appealing: If all you've got is change to pay with, then 18 cents might make a difference.

As Bill Clinton said at a town fall, only 20 minutes away. "There are lots of your fellow Americans who are making choices everyday to about paying the price to fill up their gas tank to get to work and being able to buy food for your families or medicine. That's happening in this country and in this state," he said. "This is an emergency for American families."

He added, "She's been criticized for doing this by her opponent and by a lot of people… They're saying oh you can't bring down the price of oil. They all say oh this is pandering, you know you can't bring down the price of oil. She never promised she could bring the price of oil down. She said we can't fix your problems over night, and people need help to pay [sic] your bills. And I promise you, anybody who's out their criticizing this is somebody who doesn't have any trouble paying for a tank of gasoline. Anybody who's out there driving a lot, knows that every little bit helps."

The audience cheered. To them this wasn't political pandering, it was a way to help fill up the tanks of the pick-ups, and SUVS, and four door sedans crowding the parking lot and piled onto the grass outside La Porte High School. It made all the policy statements put out by the Obama campaign or written about in the nation's papers or discussed on cable news appear meaningless. The long-term good doesn't mean much if you can only put a gallon and a half of gas in your tank.

As for me, fuel efficiency was the last thing on my mind, as I raced the 180 miles to get to Bill Clinton's last event in Indianapolis. By the time I pulled into downtown Indy, my little Mazda had guzzled its way through half a tank of fuel or $29 worth of gas.  

MAIN PAGE

Email this EMAIL THIS

Comments

OK weenie.. what you failed to mention is how much of that $$ you spent was actually tax, and how there is no mechanism to force the oil companies to pass it on... sad lazy reporting!!
I've also recently paid with handfulls of change out of my change jar.

That doesn't make me STUPID.  

My problems--and I'm like many Americans--have to do with an economy sucking the life out of my household.  

Don't SCREW with me with this gas-tax B.S.
BUT everyone agree the tax reduction won't be passed on to consumers.  You night want to mention that.
What the f---k! Are these people on the Clinton payroll?
Who wrote this?

This article is nothing more than continuing the THe Political Pandering of the Clintons.

Are you campaigning for Hillary Clinton?

How much more gas would 18 cents give the guy?

Who are you?  You must be insane, or working for the Clinton Campaign. One or the other.
Thats the point. Obama doesnt understand the "real world". Obama said the average american will save about 30 cents a day, thats the savings on 1 1/2 gallons of gas. OK, take your average car, maybe you get 20 mpg, thats 30 miles a day. Ask any body who commutes, or any parent who has to shuffle around kids or day, or a small business owner making deliveries, ask THEM what this 18 cents means. Maybe its an extra loaf of bread, maybe a gallon of milk. But it all counts! Obams makes an intellectual argument based on some statistic of what an "Average" american drives. Maybe if he really listened he might learn something.
Bill was solidly, and correctly, against the fake gas tax holiday - before his wife was for it.  

The Clintons are the ultimate panderers (liars) who WILL DO AND SAY ANYTHING TO GET WHAT THEY WANT.  They are dangerous people.  They will nuke their own party. PLEASE, INDIANA, you can stop this nightmare.  VOTE OBAMA!!!!
You are soooo irresponsible.  If the price of gas were actually going to be reduced by $.18, you would have a point.  Experience has shown that it will not benefit anyone...at all.
I am tired of the Obama acolytes trying to make a false equivalency between Clinton and McCain's gas tax holiday proposals. More falsehoods from the Obama camp, along with the race-baiting we've come to expect from the Wilders and Clyburns of the world. Oh, right, Clyburn hasn't committed to supporting anyone yet. What a farce.

Here is a must-see video about Barack Obama's positions on terrorism. It is not a pretty picture that he presents, but it is one which all responsible voters must acquaint themselves with:

http://www.youtube.com/watch?v=3_N1rqVo2W0

I urge all voters to educate themselves on Obama's dangerous stances with regard to terrorists and terrorism. America cannot afford to have this man as its next President.
You know, MSNBC - you are really off the rails here...are you on the Clinton staff or just touting her gas tax?
It breaks your heart, but yes 0.18 a gallon does make a difference to those paying for gas with change.  Honestly, I have been there.  In a lot of ways, I am still there, we are behind in our bills here.  Despite not heating my upstairs over the Winter, I still get behind in heating gas and electric over the Winter.  I cut back and I cut back and my bill still rises astronomically.  We all sleep downstairs in the Winter and I still can't lower my bill.  My husband has worked two or three jobs at a time and I work a part-time one, staying at home most of the time so we don't get killed on daycare costs.

But still, in the big picture way of the world, the gas tax holiday will probably not save money and will cause much harm.  Lots of very smart people who have looked at this say so...  This is NOT going to help even over the short-term.  The having to squeeze out more dollars to pay for gas in the Summer pales in comparison to the costs I have in the Fall and Winter.  Back-to-school clothing and supplies, endless school fundraisers, academic year activity fees that start in September, two kid birthdays, countless holiday expenses (Halloween and Christmas, Thanksgiving travel), heat heat heat.  Summer is a cakewalk compared to that.  What is the gas tax holiday going to do for me then.

More to the point, I don't just worry about now...what about continuing to pay for health care, saving for retirement and college, lost house wealth and lost buying power over decades.  What is the gas tax holiday going to do for me then.

Telling truth to our ultimate power is Obama...he is the type of leader our Country needs.  Not a politician who panders to the desparation we all feel to save a buck in a Summer week to lose our shirts in the cold hard Winter.

I am so sick of this.  I quote the Charlotte Observer in their editorial endorsing Obama this morning.

"Early in the campaign, Sen. Obama said, "We want a politics that reflects our best values. We want a politics that reflects our core decency, a politics that is based on a simple premise that we stand and fall together."

Yes, we do"

Except the consumer who is spending his last bit of change on gas will never see the 18 cents. The price of gas is set by the market, regardless of the level of taxation. The 18 cents will either go into the highway trust fund, or it will become extra profit for oil companies who are already experiencing record profit levels.
If all you've got left is 18 cents, you'd think the Government would help with more than a few gallons of gas.

Nice way to try and sugarcoat a really stupid proposal that literally everyone has eschewed. If it's so gosh darned great, why haven't transportation unions across the nation hopped all over it?

Having been a cab driver for years, who very much penny pinched, your vignette does not make the gas tax holiday sound any better, sorry.

Sounds like a very elitist thing, actually. Like when you think that $30 savings will really make a difference in someone's miserable existence, or in your case, that handful of change. You know there's always a next day, right?

That man doesn't need a gas tax holiday, he needs a long-term plan and a leg up.
Please!, are you drinking the Billary Kool-Aide??? You are forgetting something, supply and demand...get rid of the gas tax for 3 months and within that 3 month period, more people are buying more gas because they perceive it to be "cheaper"...then the oil companies raise the price of oil because they need more, then the price of gas goes up and your savings=0....come on! The media has a responsibility to tell the truth to the American people! I didn't even get to how it's bad for our environment and that the money we use from the tax is to be used to repair roads and the rest of our infrastructure...don't feed the low info voters...EDUCATE THEM PLEASE!!!
Here's a different story.  I remember getting a check in the mail several months after George W. Bush entered office.  I clearly remember asking myself at the time:  at what cost?  Sure, I had an extra hundred bucks or so in my pocket, but here we are nearly 7 years later and the value of the dollar continues to fall.  If not for the lost revenue thanks to those rebates and the Bush tax cuts, the dollar might be strong today and gas much less expensive.  As a country, we can't continue to put band-aids on broken legs and wonder why things don't get any better.
the plural of anecdote is not data
Any trade-off of a gas tax holiday contrasted with the potential loss of transportation dollars and jobs is not a solution. Sorry but all of us are in this together and will have to make sacrifices for any turnaround in the lopsided economy. By the way, people put change on the counter for things other than gas. Does that mean suspend all taxes?
It is appealing but it can't happen this summer. Why would a reporter write such knee jerk BS. There is no guarantee that the savings would be passed on to the consumer and in the mean time someone in the road construction industry would be losing their job and our roads will get worse. Do you have any idea how much bad roads cost the consumer in repairs each year. It is astronomical! Aswini you should be ashamed at the angle you took on this story! Are you for McCain or Clinton? This is beneath a reporter that does not work for Fox news!
And did he have a puppy and four children under 8 in the car who were sick and needed medical care?
Yes, it is heartrending; yes, it is tragic; yes, it is Kodak moment for the Clinton message. But what's to keep that convenience store owner from raising the price to cover that eighteen cent drop? Or the oil company from raising the price it charges? Or the man paying with change to think he can now drive more rather than conserve or save to pay for the higher price of gas when that tax-holiday is over?
Yes, people work hard and sometimes it seems as if it doesn't pay off.
People also make bad choices and don't like having to live with the consequences.

This commentary on a policy that will do more harm to the public as been noted by every expert known to man is shameful. By drumming up sympathy for a guy with change for gas you attempt to legitimize a policy that very well could put another guy out of work. The oil companies will most likely raise the price to compensate and nothing will have been accomplished. The responsible position to take is to drive less! The less we consume, the lower the price will go. Obama shows real leadership on this position...something we haven't seen in years.
How can a person be out of touch with familys when he has a young family and knows what it takes to raise one.  More so then Helery, who has a adult child and not living at home?
Umm, hello...the oil companies are just going to pass on the costs to the consumer...and there's no way Clinton can actually get this passed. People are hurting and we need help. But hypocritical pandering is not a solution.
Ahh, you see the light...that's what it's all about!!

Alot of Americans are suffering from the high price of gas, high price of food, losing their homes, etc.  To the point of having to make decisions to sell household items to fill their tank or put food on their table.  This is reality!

Any hope, albeit small, gives all those people some recognition that someone feels their pain, that someone is going to do something about it!!

Frankly, there's nothing wrong with that!!
If this gentleman bought $5 of gas at $3.69/gallon thats 1.35 gallons. The tax holiday would have saved him $0.25. Twenty five cents! Why didn't you help him out? If people did the math they would see this is a joke and real help just a ploy! If the "holiday" were to happen people would run out and buy lots of gas and the price would increase anyway because of demand. This is Economics 101 and John and Hillary are not showing leadership by proposing a policy which will do more harm than good!
Mark Murry if you wrote this article its Pathetic. The man you describe with pulling change out of his pocket, 18 or 30 cents would not have help him at all. $1 or $1.50 would have helped this man a great deal. The case of 18 cents helping someone at the pump is pandering at best....

You paid $3.69 for gas that day, now under Hillary's logic minus 18 cents which is $3.51 for a gallon of gas.... Whats the diffrence, not much as you know.

Pandering for votes thats the difference... Which Obama refuses to do.... The oil company's is just going to drive up the price to make up the 18 cent difference anyway....

And how is Hillary going to do this when she wont even be president by the summer or next summer for that matter... Give me a break!!! Pandering at its finest and Mark your helping her cause...Pathetic...
If people feel that 18 more cents in their pockets make a difference there is a more FUNDAMENTAL problem going on that a "holiday" can't fix.  

And besides that ... who says the price goes down 18 cents on the day it passes?  You already said in the article gas prices ranged from 3.69 to 3.77 ... so ... if you got the 18 cents and went to the more expensive station you will no longer see the 18 cents unless you know the more expensive one was more expensive in the first place ... it will look cheaper but since folks who seem to care about this are not necessarily math geniuses will only put together that the price is cheaper ... oops .,.. may not 18 cents cheaper. ..

ONCE AGAIN ASSUMING THE GAS COMPANIES ARE NICE ... to a) pay the windfall tax b) accept any kind of movement in the government to impose it in the first place and c) not just raise prices to cover the 18 cents and make some profit to cover the *LOSS* of their windfall to satisfy their pissed off stockholders ... oh and d) not let REAL MARKET FORCES THAT SAYS PRICES GO UP WHEN DEMAND GOES UP AND SUPPLIES GO DOWN affect the price of gas ... so that at the end of the holiday suddenly gas prices JUMP 18 cents because all the savings where eaten up by normal increases ...

Are people that dense?  Then we deserve George Bush and this war and these troubles ... leave it to god or darwin to clean things up ...

I absolutely makes a difference in my family.  My family is probably typical of (the working poor)
one car is an old gas guzzler--we can't afford another one.  It cost over 70 dollars to fill it up. the other small pick up gets bettwer mileage but still cost 60 to fill up.  we don't go on any week end road trips an more, that is just driving where we have to to make it through the week
Any relief from the high cost of living is very welcome at our house.  I think the roads will be taken care of when we make up our minds to do something about the price gouging at the gas pumps.  
this family welcomes any small change we can get.
maybe some of the more wealthy elitist think otherwise.  let them live on my salary then say that.
Wow.  Somehow it still manages to get a reaction out of me when journalists start to editorialize in a way that blatantly favors one candidate over another.  I guess it helps when the point that this supposedly well-educated person makes is so devoid of intelligence.  

Your anecdote is ridiculous.  For how many people is that 18 cents - not per gallon, but for the entire fill-up - going to make a real difference?  I'll tell you what, people hard up for 18 cents are going to need help that's a little more substantial than a summer-long "holiday".  Something like job creation, maybe?  Oops, the gas tax holiday would eliminate a few thousand of those.

Furthermore, if there were more actual REPORTING going on (your job, remember?), perhaps more people in this country would be aware that a gas tax holiday is likely to actually RAISE gas prices, courtesy of the basic rules of supply and demand.

Instead, you gush that the audience of - no, it couldn't be - CLINTON SUPPORTERS actually APPLAUDED after something Bill Clinton said.  Gosh, that MUST mean that they're all hurting so bad that a half tank of gas (or less) over the entire summer really would make or break them, how else could one interpret their cheering?  Maybe Clinton's right after all, what do practically 100% of economists know anyway?  They're probably all elitists, too.
(1)  the president has no power to raise or lower taxes.  that power lies with the House of Representatives (see U.S. Constitution).

(2)  five minutes after that tax went away, the oil companies would raise their prices at the pump to wipe out the savings.  

Dear America - wake up.  This isn't brain surgery.

So much for your correspondents being objective.  Yes, of course it's great to save money.  Who doesn't want to?

But what happens when the gas station retailer or oil company just raises the price of a gallon of gas to cover the lost tax?  Which is probably just what will happen.

How is Hillary Clinton going to get this passed on to the oil companies this summer?  Answer:  She's not going to.

And since she already has said that she is going to spend the oil companies windfall profits on something else -- like renewable energy sources - how is she then going to spend it to cover the lost tax?  I know I'm not good at math but even I know you can't spend a dollar twice.

It's a scam -- it sounds wonderful and, again, who doesn't want to save some money up front?

But 1 line in particular struck me about this post:  'the long term doesn't mean much'.  And that's just the problem - it better start to 'mean much" if we have any hope of getting out of this mess.

Not only is Hillary Clinton a shameless panderer - and for the record, even her own aids have admitted that this is basically pandering -- that they don't have much hope that this is actually going to work - but apparently their employee Ms. Anjuraban has joined the pandering brigade.

So Ms. Anjuraban - you have officially joined Hillary's "me first and everyone else can go s...w themselves" campaign.  Congratulations!  (that's sarcasm in case you don't recognize it).


Indiana and North Carolina -- You are smart (smart to see through this shameless pander), caring, hard working people -- the country needs you!!!

Obama '08!!!!!!!



Aswini,

Give me a break!

When my candiate lost in Pa., I felt hurt, and pain. REAL, hurt, and pain. What could I do about that? Get drunk, even though I'm a recovering alcoholic? Give up, end it all,  then awake to the flames of hell as someone damned for having committed suicide?

My point, though exaggerated is this. It is, what it is. Hillary's gas tax holiday will do much more harm than good. Americans need to be more efficient in our consumption of oil. We need to bite the bullet.

That said, I wish Barack's closing ads in Indy, and NC., had punched away at the downside of Hillary's off the wall idea, by bringing home the devastation of lost jobs, and neglected infrastructure.

Oh well, who am I to advise him. I have no college degree. What I do have is a full heart placed firmly behind his candidacy. If telling Americans the truth means his bid for the POTUS fails, then so be it.

However, as G-D is with the truthful, my hope has not faded.
The oil companies will just jack the prices up more and we will continue to hurt ourselves through excessive usage.  While we should remember the "human" side to every policy decision, this is simple economics that needs to win out.  It's a bad idea.
This is so sad. I believe the Clinton's are using these poor people who don't understand that even if this was a good idea, there is no way it could be enacted into law by this summer or next. It is simply a ploy to win votes by promising people something she has no chance of delivering on and no economist or expert can be found to say it would help. SHE WILL SAY AND DO ANYTHING TO GET THE NOMINATION.  This proposal would do far more harm than good and there are other ways to help those most in need the same way we help people pay their heating bills or provide food stamps.

Luckily, the supers are more sophisticated and intelligent and can see through the obvious pandering and outright lies.
Gosh, yes, it's appealing.
That's what pandering is.  And why it works to get folks elected.
The only problem is that it's a short-term fix that will leave our infrastructure worse off than before and people with jobs in that industry jobless (or we'll borrow more money to do that), and the oil companies wealthier than ever.
And there's no guarantee that the tax rebate will be passed on to oil companies.
We are in a dual crisis here -- oil prices going up and global warming staring us in the face -- and we're paying the price of an administration that has sat on its hands for seven years -- aiding and abetting the crisis we find ourselves in.  That's what happens when you elect two people from the oil industry as president and vice president.
There are better ways to help people deal with this explosion in gas prices (lowering taxes on middle class folks, raising the minimum wage) -- while at the same time working non-stop to force auto makers to create more fuel-efficient cars and to use windfall oil profits to finance research into better energy solutions.  
In Virginia, we had a governor, Jim Gilmore, who campaigned on "no car tax" -- and won.  His pandering has cost our commonwealth dearly ever since -- and frankly, the few dollars anyone saves on car tax rebates are not significant.  It just sounds real good at election time -- and then having rolled back the tax, it's nearly impossible to reinstate it.
Are you writing an editorial column?  If so you should start it upfront and not call it news reporting!
Yeah.  I could just imagine one of those less than college educated highway construction employeed Hillary Clinton / John McBush supporters voting for either of them and then 2 months later having his job eliminated by the very bill that he decided to support those candidates on.  It's amazing how easily so many Americans are led around.
I really hope you decide to publish this post as none of my previous have appeared in your blog.  What is your problem?  Scared to see that people know the truth?
In Canada we supply a lot of oil to the U.S.yet we are already paying 15/20% more for gasoline.This has been so for quite awhile but we know there's no free lunch anywhere and we'd disown a poltician for trying to bribe us. A holiday will result in lost jobs and higher costs, including energy, down the line.
In Canada we supply a lot of oil to the U.S.yet we are already paying 15/20% more for gasoline.This has been so for quite awhile but we know there's no free lunch anywhere and we'd disown a poltician for trying to bribe us. A holiday will result in lost jobs and higher costs, including energy, down the line.
There will always be extremes to the plausibility.
Commuters should look very closely at carpooling or low mileage vechiles. Networking solution exist in many websites..
And Bill Clinton again is trying to stuff something down our throats as fact...Bill get your wife to fill your tank ...or is that to difficult?
As a reporter if you want to help the average working American you'll stop reporting only the propaganda about Big Evil Oil. ExxonMobil profits up 17% this quarter!!! So let's all hate on big oil. That's like reporting that Air America's listeners have increased 20% because they've gone from 100 to 120. :-) ExxonMobil only deals in 3% of the world's oil. We have oil here, and those are great paying American jobs. If we told the world we were going after the oil we have here the speculators would be screwed. Who doesn't want to stick to those guys? That's money that could be going into our treasury instead of some thug nation. I'm all for clean air and water. I'm all for getting off the grid. Anyone who thinks that these big energy companies and government teaming up for this BS cap and trade scheme is going to help the average American is a fool. Oh well screw it bring back the Jimmy Carter years. America needs a bitch slapping.
Who is to say that the man paying with change was not making a statement to the fuel companies...And the fact that in most places you cannot pay more than $5 with change......The reporter WAS lazy in Not finding out the REASON that the gent paid in change...Shame on You for printing this clearly slanted piece.
 I happen to be living on NO income other than food stamps, I live in Subsidized housing as I am disabled and unable to work (try getting a job with a massively rebuilt neck and on full time, long term pain meds and the like) I am just about as poor as it gets, and to see the kind of political pandering being done by the Clintons is just totally disgusting to me.  If they REALLY wanted to help out the ordinary American, those who are having real problems now, they would work to increase the Foodstamp program so that it at least keeps up with inflation, they would work more on easing the debt problems for those that were suckered into the super bad mortgage scam (and actually punishing those responsible).
 I mean come on, Hillary has been in Congress now for what, 6-7 years, and she has done NOTHING other than help make herself that much richer..to the toon of over 100 MILLION......and she wants us to vote for her....She would be the epitome of a Crooked, Bought Off, Dynastic President, right alongside of Bush Jr.

WE CANNOT AFFORD TO HAVE THE TWO WORST PRESIDENTS IN HISTORY BACK TO BACK. Please Wake Up America, and really STUDY your candidate....Please??
shoddy reporting....i'll pay attention to this when HRC can present one economist that supports her position


SEND A COMMENT

PLEASE READ: All comments must be approved before appearing in the thread; time and space constraints prevent all comments from appearing. We will only approve comments that are directly related to the blog, use appropriate language and are not attacking the comments of others.

Message (please, no HTML tags. Web addresses will be hyperlinked):

TRACKBACKS

Trackbacks are links to weblogs that reference this post. Like comments, trackbacks do not appear until approved by us. The trackback URL for this post is: http://firstread.msnbc.msn.com/trackback.aspx?PostID=978680

First Read e-mail alerts


Sign up for First Read alerts
The first place for key political news and analysis

Syndicate This Site

Add First Read to your news reader:
live.com xml
myyahoo msn
bloglines newsgator
google