Perhaps the only decent recent journalism I’ve seen on issues under discussion in the presidential campaign has explained that Clinton and McCain’s proposed gas-tax moratorium is a bad idea. Obama opposes the moratorium because the gas-tax funds our highway infrastructure. Many in the GOP agree with Obama.
Minority Leader John Boehner (R-Ohio) said only that the idea was “worthy of consideration,” during a Thursday press conference.
Other Republicans were less obscure. “Hate it,” said Rep. Steven LaTourette (R-Ohio), an early McCain supporter. “It has some attractiveness but the difficulty is that by [draining the highway trust fund] it will make the problem worse.”
If roads and bridges fall into further disrepair, lengthening traffic delays and wasting more gasoline, the fuel problem will get worse, he said, and then taxes would have to rise again after the holiday.
It’s important that journalists report on this because the moratorium is a feel-good proposal that promises immediate tax-relief to an electorate suffering from high cost of living increases.
Clinton, McCain, and Obama continue to use the issue and the price of gasoline to hammer away at each other on the presidential campaign trail.
It was two weeks ago that McCain first suggested suspending the 18.4 cents-per-gallon federal gas tax this summer, during peak driving months, as a way to give drivers a break. Clinton quickly endorsed the idea, and now both McCain and Clinton are sharply criticizing Obama’s opposition to it.
The media has been no help to Obama in providing balance and context to the avalanche of recent attacks. But at least on the moratorium, they have done their part to educate the public. And, for the record, the moratorium is a bad idea but at least Clinton proposes to find off-setting funds to maintain our highways. McCain does not.
Try it out and you’ll see how much you can save. One of our clients figured that with my car, if we start up work again, I can save a little over $12. At the rate I’m driving now, I can save $8.36. It is a stupid, ill-advised plan that only gives me enough to buy a few packs of smokes, KWIM. In the long run, people’s lives will be affected–not just highway workers, but drivers too. You’d think that after that bridge collapsed last year, the last thing presidential contenders would offer up is something that will take money away from infrastructure.
There you go, doing the math. Shame shame. 🙂
The tax is approximately 5% of the total cost of gas at $3.65/gal, or 4.6% at $4.00/gal.
Considering gas has gone up almost 300% since 2000, I guess that 5% isn’t really “tax relief.”
“Tax relief” is for the top 1%, duh. . . .
Also consider the incidence of a tax. Removing or cutting a tax affects the supply/demand balance. Suppliers will raise the price to partly or wholly offset the tax cut. i.e. if the major brands raise their wholesale price 18 cents while the government cut the tax, there is no net cut to the consumer. How big this effect is depends on the relative elasticity of supply and demand. I have heard one energy expert express the opinion that cutting the gas tax by 18 cents will result in a net saving to the consumer of 5 cents. And, of course, 13 cents more profit for the oil companies.
Considering global instability, ie. Niger River Delta, etc., the price of gas would still increase, easily offsetting the 18.4¢ per gallon drop in price. Again, this is a ploy by McCheney and piggybacking by Billary to push Obama into a corner. Hmmm . . . .
Except that Obama is getting huge kudos from the business community and economists. Even Paul Krugman who has nothing good to say of Obama
Clinton, McCain Push Gas Tax Break That May Help Oil Companies
Taxpayers ask, ” what comes after Labor Day? “
I would never use the term “tax-relief” – it plays directly into the Republican frame that we are oppressed by taxes and the GOP is our liberator from that oppression.
even I am not immune to the all-knowing Luntz’s influence.
Of course, I understand that. It’s why I put it in quotes both times I used. it.
BTW – and way off topic – I just got back from seeing Iron Man and it is even better than the fawning reviews have made it out to be.
McCain is playing games with the American pocketbook; the American psyche as well. How typical of a rethuglican.
Down the drain with John McCain.
I think Obama is missing an opportunity to a) educate American about why their gas got expensive and b) point out that the other two candidates just don’t get it or are lying to get your vote.
Dropping the gas tax could well likely raise gas prices because it will increase summer demand at a time when demand in already pushing up the price.
Increasing the tax, or anything that reduces consumption, would likely reduce the price of gas.
Add to that the fact that the gas tax under funds needed infrastructure maintenance as it is and giving a tax moratorium will only make things worse.