Posted on 04/30/2008 8:17:37 AM PDT by Deek1969
A gas tax holiday proposed by U.S. presidential hopefuls John McCain and Hillary Clinton is viewed as a bad idea by many economists and has drawn unexpected support for Clinton rival Barack Obama, who also is opposed.
"Score one for Obama," wrote Greg Mankiw, a former chairman of President George W. Bush's Council of Economic Advisers. "In light of the side effects associated with driving ... gasoline taxes should be higher than they are, not lower."
Republican McCain and Democrat Clinton, who is battling Obama for their party's nomination, both want to suspend the 18.4-cents-per-gallon federal gas tax during the peak summer driving months to ease the pain of soaring gas prices. The tax is used to fund the Highway Trust Fund that builds and maintains roads and bridges.
Economists said that since refineries cannot increase their supply of gasoline in the space of a few summer months, lower prices will just boost demand and the benefits will flow to oil companies, not consumers.
(Excerpt) Read more at news.yahoo.com ...
If the states voluntarily suspended their taxes for the same period, we would see an effect.
18.4 cents! Yeah that will be a big help when gas is at $5 bucks a gallon. These people need to go out and fill their tanks themselves to see how much it really hurts. Jeez, I get so angry at this.
“In light of the side effects associated with driving ... gasoline taxes should be higher than they are, not lower.”
::::::
Tax, tax, tax — it is all Washington knows how to do. I wonder if this genius socialist ever thought of trying to spend less, and waste less, ever entered his mind???
“”In light of the side effects associated with driving ... gasoline taxes should be higher than they are, not lower.””
Um, global cooling?
This would actually be a significant help to our family. I think it is an excellent idea. When is tax freedom day this year? Sometime in May? Time to start heading in the right direction.
I was wondering this morning if all the idiots that drive at a high rate of speed realize how much they are wasting in fuel? Slow down people and do the speed limit. Your wallet will thank you.
Sure, the tax suspended would be nice and immediately lower fuel costs, but conversely, it’ll also raise the demand for the fuel, thus pushing prices right back to where they currently are (if not higher).
While I’m all for keeping money out of the hands of the government, ultimately, this will not reduce consumption, which is what we have to be able to do to effect prices long term, or substantially increase supplies.
Short term, it’s a good idea, but let’s face it, it ain’t gonna happen.
“Read my lips.” wrote Greg Mankiw, a former chairman of President George W. Bush’s Council of Economic Advisers.
Either these projects are deferred, with concurrent economic impact, or they go forward on the back of additional Gov’t borrowing or imposition of higher charges and fees.
Either way the consumer will pay and, if taxes are eliminated, the consumer will very likely pay much more in the form of other indirect cost increases.
I say, let the market determine the price and stop the interference by the Gov’t - That is why we are in this spot in the first place.
It's not a waste if it gets them where they're going quicker. It's serving its intended purpose.
Consumers don’t care what economists think.
It appears Obama was for a gas tax holiday in 2000 when he was a state senator.
http://marathonpundit.blogspot.com/2008/04/obama-on-gas-tax-holiday-favored-it-in.html
http://embeds.blogs.foxnews.com/2008/04/26/obama-on-mccains-latest-scheme/
I’s sorry, but WTF? Using this logic, we might as well add a 5 dollar per gallon tax. Even stopped-clock-right-once Hillary thinks this is a good idea.
And the “former chairman of President George W. Bush’s Council of Economic Advisers” thinks we should be taxed more?!?! Did I wake up in bizarro world today?
Yeah, you know, like self reliance, freedom, independence, all that crap. We sure don't want the commoners having any of that stuff.
WTF? This guy was part of a Republican administration? No wonder we're screwed.
Ridiculous. As if I'll drive extra if the price drops 18 cents.
It's not like I drive less now that the price has gone up over 60% in the last year.
Ooh, good find - well done!
All Freepers should go to the website of the Trinity Church and write like if they were Obama’s voters.
Example : “I’m glad Senator Obama finally admitted how much he despised Rev. Wright and your crazy church. We don’t want to hear from you and your crazy pastor anymore.
Shut up and go back to your prayers”
The goal ? Get anger among the Trinity’s members toward Obama.
E-MAIL of the TUCC :
info@tucc.org
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