Does A Gas Tax Holiday Actually Work?

Washington Post:

Both John McCain and Hillary Clinton have called for a "gas tax holiday" this summer to offer commuters and vacationers some release from spiraling gas prices. They have urged Congress to suspend the 18.4 cent federal gas tax and 24.4 cent diesel tax between Memorial Day and Labor Day, a step that could cost the government about $10 billion in revenues. The only major candidate to oppose the idea is Barack Obama who voted for a similar measure in Illinois eight years ago. Obama now says that consumers will derive little benefit from the tax moratorium. So who is right?

Read the whole story: Washington Post

Comments

[BlackbirdHighway]

If this plan includes having Exxon pay for maintaining the roads and bridges, out of their 40 billion profit, then it's a great idea.

I suspect that instead the plan is to let the roads and bridges fall apart, and the workers who make a living maintaining them go on unemployment, making the recession even worse.

On the other hand, the plan might be to borrow more money from the Chinese, so that our dollar becomes even more worthless, making the price of oil go up even more.

[javaman]

This is possibly the most stupid idea EVER.

so this "tax holiday" will be what? 3 months long? for a grand total savings of roughly 19 cents per gallon? wooo hooo...

so please tell me, when will the check come for the unpaid road repairs come due? because, you know, those "taxes" pay to fix the fucking roads!!!

good god in a fucking handbasket!!!

This fucking asshole* of a moron for a president, is throwing a psychological bone to the nation at the expense our infrastructure!!!! so you save what? a total fo maybe 50 to 60 bucks this summer just to have shitty roads instead??????????

"hell, I can still drive...a little, but the road have fallen into shit! why can't someone come and fix them!!!"

because it takes

[JadedAggie]

Best case scenario you save 3% on your gas, while oil companies profits increase 2.1%. Worst case scenario you save 1%, while oil company profits increase 4.2%. Of course the amusing thing is that in a true supply-demand curve model the entire monetary savings of the tax cut goes to the oil companies. This entire issue is complete pandering and I personally think only John McCain truly believes in it working. I have too much respect for Hillary Clinton's ability on economic policy to believe she truly feels this policy will be effective. I don't doubt her empathy towards people that desperately need economic relief, but this simply is not an effective course of action. You could reliably save more money using a gas credit card than getting this tax cut.

[rascalov]

How about a gas profit holiday?

[dadw5boys]

YOU GET A LITTLE SQUIRT OF FUEL FREE FOR A WEEK!!!!!!!!

[Shaddup]

Only for crappy politicians and oil companies.

[hoopesaz]

It's NO solution. Obama is the only one that has this right. It saves the average consumer maybe $30 over 6 months.

[gcallaghan]

While this isn't a perfect solution, it beats the hell out of a tax cut for the richest 1%. I'll take it.

[WIpatriot]

Let's see, when we cut the gas tax the Fed gets less revenue, which means we go deeper in debt, unless we cut all Fed road funding, which will lay off more people, which will add to the unemployment line, and WE STLL HAVE A BILLION POTHOLES TO FIX.

Here's a clue: Quit driving 85 MPH in your SUV.

[drkazmd65]

But,... that would make too much sense WIpatriot,­.... And they might be 'late' or have to worry about leaving home earlier.

That would be just too 'inconvenient'.

[leftbehind2000]

How about a DRIVING holiday?

[jupitor]

Obama is right! when he ligeslated for it eight years ago our gas price's were low, and States where getting more Federal monies for road work, and when it was out there eight years ago the companys were makeing a fair profit and no scare or fear of recession. but sense Mccain and Hillary started talking about a gas tax holliday, the GAS PRICES JUMPED 10 CENTS THE DAY MCCAIN OPENED HIS MOUTH. Once Hillary jumped on the band wagon it's soared! Americans aren't stupid! We know mccain an Hillary stupidity talk about this is driveing our gas prices up so the companys don't lose profit, and the federal Goverment can't go with out highway construction money that that tax pays for! So all they've done is screwed tht american people even more. So how do we pay the 10 Billion back this little Not profitable holliday cost we get? How about takeing it out of the hides of our Millionairs Hillary and Mccain"s For driveing our gas Price's up! Thanks a lot Hillary and John we really love you for this one!

[thegreatgiginthesky]

Excellent suggestion!!!

[neocon666]

I'm with Barack Obama on this one -what's to stop the oil compainies from raising the price by the amount of the tax (that could NEVER happen)? It's just a BS ploy by McHillary to make people think that they're getting something when in fact they'll be giving up more. That money has to come from the fund that's used to fix bridges and roads -then again, perfect logic if you're a republican or Hillary supporter.

[wm1066]

I agree !