Go Read It: Clinton and McCain's Gas Tax "Vacation"

Not sure what to think about the summer vacation from the 18.4 cent federal excise tax on gasoline proposed by both Senator McCain and Senator Clinton? (It's a bandwagon you won't find Senator Obama riding.)

Economist Thomas Friedman weighs in. The title of his op-ed piece? "Dumb As We Wanna Be." A notable quote: "This is not an energy policy. This is money laundering..."

I get the strange sensation he doesn't like the idea, what about you?

ETA: It was hard to find any other economist or policy maker who thought the gas tax holiday was a good idea either, as Huffington Post's Sam Stein discovered.

Cynematic has used her preschool son's scooter as a mode of transportation around her neighborhood. You know, you stand on it and kick with the other foot?

She blogs at P i l l o w b o o k.

Comments

[Cheryl]

Obama didn't ignore the topic. He has stated that he is opposed to repealing the tax because it will only save most people something around $25-30 over a year.

[cynematic]

Cheryl, you are indeed correct. And I was unclear.

My bad--I'll fix above. I meant he roundly ignored McCain and Clinton's "summer vacation from gas tax" proposal as the pandering mush that it is--he didn't jump on the bandwagon. Yes, Obama has his own take on the matter.

[ilinap]

This gas tax vacation is nothing more than marketing psychology and spinning. I do this for a living, albeit for more noble or inconsequential causes. People just see the headlines and jump on the bandwagon without thinking about the truth; a lousy 25 bucks a month in their pockets that they'll likely spend on crap. The gas tax vacation is nothing but a teeny tiny Bandaid, you know, the littlest one in the box that is good for nothing. What does it do to solve the underlying problem? Nada. Zilch. Not a damn thing. Just a ploy in the months before the election to plant something "positive" in consumers' heads. It's time consumers started using their heads.

[Donna]

18 or 19 cents a gallon is gonna do what -- save me a couple of dollars on my $60 fill-up? And deprive the government of much-needed tax revenue for our infrastructure, which is in need of more upkeep and repair?

This is a stupid idea and is just silly pandering and I applaud Obama for pointing it out.

At the risk of sounding like a "tax and spend liberal," what we need and should have implemented years ago is a HIGHER gas tax, which would have incented our citizens to ask for more fuel efficiency, thereby creating the demand that would have had our auto makers getting creative on the problem sooner -- and it would have given the government more reserves to tackle infrastructure and environmental issues.

We've known that resources would start running low since at least the first Earth Day nearly 30 years ago and we've pretended that by some miracle, we wouldn't have to deal with it. Now look at us.

[Daisy]

We'll be vacationing this summer, so the gas tax "break" will help my family -- temporarily. Over the long haul, fuel efficiency is so much more important. This little gimmick will not break our dependency on oil.

[Susan from 29]

It doesn't annoy me that McCain/Clinton are trying to buy the votes of the electorate, it annoys me that they think the votes are only worth $28.

[chuck pizzolato]

The gas tax vacation is a great idea. Americans have been grumbling about the high gas prices for a very, very long time. And as gas prices continue to go higher, so goes the discussions and debates about what to do. Yet, nothing has been done and there's no relief in sight. For the first time, there has finally been a proposal for some kind of relief. And the reaction is "political pandering" and criticism. This isn't a proposal to solve our energy crisis or a long term solution of any kind. It's a simple proposal (with proposed funding) of some kind of relief from the high gas prices for Americans during the summer. Facing record high gas prices, I'll take anything. I'm tired of the talk...talk...talk, or the should of's, could of's...I want CHANGE.....ACTION.......I want RELIEF !!!

America needs to fund better math and economic education because Americas have been stumped by this situation: A company raises the price of it's end product (gas) because the cost of the raw material increases (oil) so the company can at least break even and/or meet previous years of operation. How does that company set record profits? Hmmmmm?

[cynematic]

Chuck,
Will $30 in your pocket over the summertime do it? Because that's the total amount estimated that this gas tax holiday will save you.

Clinton's proposal, involving a windfall tax on oil companies, will still have to pass Congress. Um...have you noticed how slowly they work? By the time they vote on it, summer will be long gone.

And if we're looking at the issue purely from the point of view of the consumer (throwing policy goals like energy conservation/reducing oil dependence out the window), then shouldn't we be challenging Senator Clinton to also repeal the 4.3 cent tax on gas her husband signed into law? Which we've had since 1993?

http://www.huffingtonpost.com/lawrence-odonnell/will-hillary-repeal-the-c_b_100261.html

She talks tough but pulls punches once it comes to a law her husband signed. Is she willing to go there or not?

Upshot: will this really put money in your pocket? Will it work or is it empty rhetoric?

Don't get played.

[chuck pizzolato]

Again, the Gas Tax Vacaton proposal is not a solution to the energy crisis, nor is it a stimulus program to "put money in our pockets". It is only a proposal to give all Americans some kind of immediate break as the U.S. faces record high gas prices with the threat of price spikes. Specifically, it is a proposal to suspend the Federal Gas Tax of 18.5 cents/gallon of gas during the summer months; it is also proposed that the Federal income lost by the gas tax suspension shall be funded by taxing the RECORD PROFITS reported by the oil and gas companies.

I don't know how anyone can know how this proposal will affect each American or U.S. company on average in a dollar amount. I know this: it will cut 18.5 cents off each gallon of gas during the summer months. Instead of gas being $4.20/gal., it will be $4.015/gal. or $5.315/gal. instead of $5.50/gal. With high gas prices and the threat of price spikes, some Americans are not affected. For others, that 18.5 cents/gal. during the summer may save their livelihoods, may save companies from closing, may save the families trek across the country to Disneyland, may keep it affordable for workers to make it to their jobs, may save their quality of life.

It takes courage to step up and do something to help and so easy to step aside and criticize.
We have three presidential candidates, each senators, each aware of the situation, each capable of sponsoring bills. They don't have to wait to become President to help Americans; the wait could be too little, too late. Is this an example of their leadership? Maybe America needs new candidates.

I don't know why we put up with a congress that works too slowly. Maybe they've become too comfortable in their jobs. Most employees would be fired for working too slowly.

It's not appropriate to compare 1993 to today. For one thing, the President of 1993 had very different political and philosophical agendas, and a very different economic strategy than the President of today. More importantly, the market price of june oil was under $20/barrel and june gas was $.58/gal. in 1993 as compared to today's price of $1.21/barrel of oil and $3.10/gal. gas. It would be more appropriate to compare today with the early 1980's.

I might as well address the economic forces that are driving gas prices higher. Our U.S. refineries are producing more than adequate supplies of gas, exceeding U.S. demand. The higher demand depleting supplies is coming from China and India. Of coure, we know the scenerio of how many of our good American companies have been relocated to these other countries to exploit their cheaper labor force, and as a result producing better profits, and making all the shareholders very happy, and many Amerians jobless. Well, the new labor force can afford to buy cars and need gas to drive those cars. Thus, the reason for the increase in demand for gas and oil, and depleting supplies.

If you're worried about American energy conservation/oil indepedence, I know two great places to get used scooters and bicycles cheap: China and India. We can park our cars and ride bikes like they used to do.

[cynematic]

Chuck,
This really seems irrelevant given that Clinton's version, at least, is tabled along with her campaign after Indiana's narrow win. But I'll reply anyway, as McCain has also proposed something like it.

We seem in agreement that record oil company profits, which we've been hearing about for several years now, should be taxed at a higher rate. Why don't we just do that and add that revenue to the general fund, so we can finally get health insurance for everybody? This would put *way* more than $30 over three months in our pockets, plus you and I wouldn't have to worry about going bankrupt from a health crisis.

In your second paragraph you contradict yourself by saying the gas tax holiday is NOT "a stimulus program designed to put money in our pockets", but the end of your paragraph seems to imply that it is. If the federal excise tax is lifted for 3 months, it means oil companies will not have to pay the government 18.4 cents. But it doesn't mean oil companies will charge you and me 18.4 cents less. They'll just keep gas at the same price or higher and pocket the difference.

In addition, the gas tax helps fund road repairs for highways. Do we really want to stop that work? And not pay those workers (in jobs that simply cannot be shipped offshore for someone in the third world to do more cheaply)? Those are high-paying American jobs fixing our roads and highways that would be lost if the gas tax holiday really happened.

I think the point of O'Donnell's article on Clinton's 4.3 cent gas tax was more to stretch to its logical limit (reductio ad absurdem) an already weak idea proposed by Senator Clinton. And to expose Senator Clinton's pandering, which always stops short of criticizing legislation that her husband passed, as opposed to an actual proposal that should be added to the gas tax holiday idea.

The real test of her concern for everyday people's lives will be this: does she go back to the Senate and push her proposed bill through in record time so Americans get the relief she promised? Or does it all just fade away once her campaign ends?

You tell me what you think will happen.

PS I'm all for bicycles and scooters--more people-powered locomotion and great for short hops around town! Even better if those bikes and scooters can be made here, to save on the carbon footprint in manufacturing them. So maybe we'll be fitter and produce less smog and be less dependent on oil-producing nations in international hotspots! Sounds like a winner to me.

[c pizzolato]

You make goog points and I'm with you on the issues.

I know Senator Clinton is concerned about everyday people's lives. I know no matter how the campaign plays out, she'll be working for the American people.

"In time" is a matter of perspective. Not all Americans share the same circumstances, yet each have a vital role in our country. At the current price of gas, some Americans can no longer afford to work. Now is already too late for them. It is certain that gas prices are to surge into Memorial Day, and more Americans will added to the "too late for them" part of our country.

The Gas Tax Vacation proposal and any short term considerations to immediately relieve Americans of the high gas prices are being challenged by the push to drill in the Artic National Wildlife Refuge (ANWR). As far as long term goals, today the House of Representatives passed legislation containing funding for alternative energy, which is being sent to the Senate and has been forwarded to the President. Unfortunantly, the President's reaction was: veto and drill.

I don't know what will happen to Senator Clinton's proposal. I heard Senator Obama's criticism, but I didn't hear his ideas of what to do to give Americans immediate help with this threat of surging gas prices.

As a matter, I don't know of anything that Senator Obama has done. I hear Senator Obama talk about change, but change what, and how. I know he's been in Illinois, but the only thing I know he's done is take money from Tony Rezko, and when he found out the Feds were going to investigate Rezko, he gave it back.

[cynematic]

Chuck,
Glad that we could find some common ground of agreement, and thanks for updating me on the bill for funding alternative energy.

What's really frustrating is that our sitting president is phoning in his last months of office (to put it mildly), to the point that we're looking to presidential candidates for solutions! A president candidate who wouldn't even take office til January 2009. We the people should be squeezing more work out of Shrubya! Because HE should be finding a fix to the problem. Then again, he's an oilman who got rich from oil money, so why would he do anything?

Here's what I've been able to find on what Obama proposes: http://www.boston.com/news/nation/articles/2008/03/20/obama_eyes_active_role_in_oil_markets/

These are long term, root cause fixes, which we need.

In the short term, I'm afraid we're stuck with Bush and the 110th congress to get us out of this mess. I guess the 'economic stimulus checks' we're all supposed to be getting right now will halp a tiny bit. But not much.

I know I feel pain at the pump and at the grocery store. And I feel for those long-haul truckers who are just getting crushed.

[c pizzolato]

I read the article and discovered very little more than I already know. But thanks.

And you're right. Our President's interests are not the American people, and he has bigger interests in oil.
But aside from our President, our Senators and Representatives are exactly the people Americans are to look to for solutions and resolutions to America's problems. Even though our Presidential candidates are busy campaigning, they still hold their officies and they still hold their oath to the American people to perform their duties (I know they're still working hard for us). Now is a good time for them to show America how they will handle Americans in trouble. Sorry, the memories of destructive hurricanes, earthquakes, tornadoes, disease, war, factory closings, stories of the Great Depression are still too fresh in my mind. I just need to be reassured that no matter what happens, every American will always have at the least a bar of soap, a tube of toothpaste, a roll of toilet paper, food to eat, and a warm dry place to sleep. Not every American has that now.

This is a very special election. I don't remember America having a good selection of candidates. It's usually a choice of damage control. The only difference this time is whom ever is elected is going to have to do damage control. I hope whomever it is acts fast to raise America up to being the Golden Country she once was.

[Glennia]

Chuck, Cyn, can you two just hug it out already?

[cynematic]

Dude, Chuck is my new Best Friend Forever!

:D

[c pizzolato]

Has anyone been keeping an eye on the media today. As important as it is, not one mention of the legislation that was passed by the House to fund alternative energy. I did notice discussions about ANWR on CNBC and they set up the premise that the President would veto any legislation that did not approve drilling in ANWR.

We'll be hearing more about ANWR now that the legislation is going to the Senate.

Just keep that prestine land and those poor endangered polar bears close to heart.

[c pizzolato]

I just wanted to add to my comments about our candidates.

There are very important issues that are being debated and voted on. Now is the time for our candidates to show their colors (red, white and blue). They're able to give inspirational talks (talk, talk, talk) but now let's see who can walk. To sidestep and not show their conviction on these issues for fear of how it will affect their campaigns will not serve our country very will. It will show how truely self serving they are and how their own agendas are more important than what is happening in American. Who is demonstrating leadership and actively fighting for the things they've said?