Pelosi: Gas Tax Holiday Would Defeat Everything We're Doing To Lower Oil Costs

Speaker Nancy Pelosi has come out strongly against the idea of a gas tax holiday, versions of which are being proposed by Sens. Clinton and McCain:

First of all, there's no reason to believe that any moratorium on the gas tax will be passed onto the consumer, first and foremost. This has not been the history, of a lowered gas tax being passed onto the consumer. Second of all, it would defeat everything we've been trying to do to lower the cost of oil. ... There are other remedies that are much better than that, and again, have a direct impact on the problem that we're trying to solve. I think the biggest answer to our challenges is to invest in renewable energy resources and to do it now.

The Clinton camp defended its call for a gas tax holiday, though HuffPost's Sam Stein reported that no experts can be found in support of such a policy.

Comments

[SDindependent]

So lets understand this......... we drop the federal highway tax for 3 months, layoff 300,000 workers to the tune of a couple billion dollars in unemployment and give the the oil companies another 18.5 cents per-gallon in windfall profits........ yes they will be happy to pick up the gap.

We transfer what 20 billion in federal highway funds to OPEC and each of us gets to save.... well....nothing we all get to add to the national debt.

This is real Washington experience at play....... 30+ years of how to play the media, win votes and screw the people. And Pat Robertson, Morning Joe and the rest of the media whores think it is just great politics.

[rollingdivision]

Pelosi, imitates Paula Abdul on energy. Question, "Given that high prices help to encourage the kind of behavior that you would want, energy efficiency, efficiency driving, bike or bus, etc., how can you be pushing climate change legislation which would also raise prices and whose primary purpose is to help to modify behavior?"

PELOSI:" Well, let's hope that it doesn't promote higher prices. In our climate change initiative we had a very important meeting last week on Earth Day with representatives, all aspects of the interfaith community who are supporting the climate change legislation. We don't know what the particulars of it are, but we need to have climate change legislation. And that is from the evangelical community - kind of strong voices there from the evangelical community joining 27, I think it was, Protestant denominations and the Catholics, the Jewish, every faith. And part of it is to preserve the planet, God's creation, and to do so in a way that does not hurt poor people, whether that is in the price of energy for mobility or for home heating or cooling or whatever it happens to be. And then the job creation, to have it be something that lifts people up into the middle class. So this is a value we have. And anytime..."

[JoInCalifornia]

You want to help the "little guy"? Drill in Anwar, develop North Dakota. This foolishness about not devoting an area of a few thousand acres or even a good deal less (because of modern drilling technology), due to very specious environmental "concerns" is bankrupting all of us and has enriched the Saudis and other beyond anyone's wildest imagination. If any politician truly cared about the American people we would be drilling. (And reducing oil consumption and, with our new found wealth, develop new and cleaner technologies, subsidize the purchase of hybrids and become energy independent of dangerous and unstable foreign nations and and and...)

[rollingdivision]

Democrats want higher not lower energy prices. Their goal is to strangle energy usage and high prices are a primary tool in their efforts. For public consumption during the election campaign Democrats pretend to want lower gasoline and heating oil prices, but they block the very things, oil drilling and the construction of new refineries, that would actually reduce them. At the same time, for reasons of "climate change," they want less consumption of oil and gas, which implies higher, not lower, prices. Bottom line Democrats want higher not lower energy prices as a part of their unfounded environmental religion.

[cramos]

I guess the 'she' referred to is Pelosi.......

Pelosi was on of those "elites" who Obama was speaking to in San Fran.

Symbols are important ......even the smallest reduction will help people struggling which is the vast majority of Americans

[lbrillante]

As long as she can fool people into believing that she's 'on their side' 'trying to help the 'average' american' because she's 'doing something about 'their' problems'... and it gets them to vote for her...

Clinton does not care what REALLY happens after that... she doesn't care if it actually saves them money or is overall helpful to the people, the environment, etc.

She just wants to WIN!!!! AT ALL COSTS!!!

I feel sad that some people actually trust her and will give her their vote.

Fortunately Senator Obama will be the democratic nominee and we can start finding some real solutions working with a president who WILL CARE ABOUT THE AVERAGE AMERICAN, WHO BELIEVES ALL CHILDREN ARE OUR CHILDREN, WHO WILL TELL US THE TRUTH EVEN WHEN IT'S HARD.

CHANGE WE CAN BELIEVE IN!!!

OBAMA '08 PS. I really like Michele Obama too!!!

[aplegrand]

Hilary Clinton is crazy. She is single-handedly trying to destroy the Democratic party.

http://politicalticker.blogs.cnn.com/2008/05/01/clinton-to-congress-you%e2%80%99re-either-with-us-or-against-us/

[cornflower]

At least Pelosi may finally be getting it. Gas Tax holiday is wrong in every way. We need an increase in the gas tax, not a holiday.

[beerguy]

Yes, raise price even more! You obviously did not do well in economics class.

[JoInCalifornia]

I'm from SF and don't like the Pelosi's (the local slant is that he's the brains, but who cares. I certainly don't).

The Pelosis are master politicians. If they are proposing that we lower the 97% limit of the National reserve, it is probably because they know that Bush will oppose it because he will feel that doing so would be a threat to national security. That way, nothing will happen and the Pelosis can blame Bush. My feeling is I don't care who's to blame, I want America to become energy independent which will greatly lower our energy costs and not force us into the position of buying energy from very volatile and hostile nations.

Lowering our oil reserves is a short term solution which definitely does not solve our energy problems. We need to take care of this problem. we also need to stop fighting about everything to the point of paralyzing our nation.

[KillTheMessenger]

It does not matter what Mrs. Pelosi says. President Bush will do whatever he wants. He has proven that time and time again.

In an case, you could spill out the SPR at full rate and nothing would happen to the market. It would cost billions of dollars to fill it again, though. OPEC producers would have a great laugh. We would be giving oil away that we bought at $35/barrel and then refill it at $135/barrel.

The solution is pretty simple. $1/gallon on gas means a $20 (or so) tax on every barrel of oil. We are consuming oil at a rate of some 25 million barrels a day. So that's $500 million in the bank every day. If we offered a $5000 incentive for every buyer of a gas electric hybrid and $10000 incentive for insulation and solar heating, we would see serious effects on the nation's oil imports within a few years. The difference of a $1 gas tax is simple: wait six months and oil will be $140 per barrel, anyway. The difference is, however, that we are giving half a billion dollars in investments away EVERY DAY, if we don't raise the gas tax.

[beerguy]

You libs solution to everything is more taxes. Why don't we get more oil. If we made a concerted effort to get more of our own, it would help stabilize the market.

[UnbiasView]

Quick question: Who makes more of a gallon of gas?

A. Big Oil?

B. State & Local Governments?

[JoInCalifornia]

State and local governments by a mile. The hated oil companies make 8 cents a gallon and they're the ones who actually produce the oil. I think the government takes about 60 cents a gallon.

Let's drill already!

[cornflower]

Let's not! Let's start reducing our consumption. Come on people, oil is so OVER! Wake up!

[KillTheMessenger]

C) National oil companies.

[larryo]

Two long pages of comments and I don't think one person noticed that what Pelosi said about how to deal with the problem, quickly and in the long term, was just exactly right. If Bush stopped buying at the spot price to keep the strategic reserve above 97% full at all times - probably four times what we could conceivably need - demand for, and hence the price of, oil would drop significantly. Notice: Everything Bush does drains the treasury somehow.

In the long term, she wants to divert subsidies to oil companies to the development of sustainable energy sources. Don't say it's pie in the sky - we have the technology. That is beyond dispute.

This gas tax holiday is a diversion, and everyone is getting diverted.

[UnbiasView]

WTF are you talking about?

The oil reserve's current capacity to hold up to 727 million barrels.

We consume about 22 million barrels per day.

That's about 33 days worth of supply.

If Bush stopped buying it the oil would not drop more than a few cents. If he were smart he would sell 50% for $115 a barrel to the market, make a profit and then refill it.

[JoInCalifornia]

Before we decide to lower the amount kept for the strategic reserve, I would want a lot more information that doing so didn't endanger our national security.

The pols have been using energy as a political football for way too long to trust any of them.

Let's drill. I can see no reason not to do so. I think that in these cases, the environmental concerns are greatly exaggerated. ( I followed the Anwar controversy very closely and there was simply no logical justification for not drilling. It was just a partisan battle.)

I'm weary of not doing what is in the best interest of our country. It's time to drill.

[UnbiasView]

Drilling is pointless now, it will take 10-15 years if they said yes tomorrow. This Government is only dependent on oil because they decided to be.

[JoInCalifornia]

Sorry folks, this is where we part company. Tax the oil companies (Senator Obama's idea) and they will pass it on to us. Tax holiday yes or no, who cares, it's a silly short term political bone.

Let's drill. Did anyone but me look into the facts on Anwar? In the Arctic Anwar is 19 million acres (that's big). With modern drilling techniques, the drilling could be done in an area of a very few thousand acres. I don't know or care what special interest groups the pols are pandering to by holding up the drilling, but we could get from Anwar what we are now getting from the Saudi's. Also there was an enormous discovery of oil in North Dakota that could potentially make us energy independent. if we would only develop the find. (google it for more info).

Do I want us to reduce energy use? Of course. Do I believe that we should develop cleaner sources of energy? Of course.

Meanwhile, let's stop acting like total self-destructive fools and drill already.

[UnbiasView]

I couldn't agree more, I don't see the lover fest with a place that is dark for an entire month of the year and where no one lives.

[KillTheMessenger]

Nothing in life comes for free. You would be surprised how easy it is to have universal healthcare, retirement funds, great roads, good schools, free college education, safe bridges and great inner cities once you are willing to pay for them. They key to all of these riches are called TAXES.

Or... you can have CEOs retiring with $300 millions a pop and essentially no taxes on their billion dollar stock options earnings. Sounds good, too.

So where do you want to drill, exactly? The US has peaked in 1970 and it would take a geological miracle to reverse that. Now, geological miracles usually take a couple ten to a hundred million years to form. Maybe we can just wait it out.

[Mattjoe]

Listen gang, Obama could have mailed this one in - YOUR transaction with big oil begins and ends with your local retailer - to assume substantial tax savings will end up in your pocket - well, let's be serious.

Any "solution" oriented discussion involving "big oil" that leaves the mouth of a nominee in 2008 better include the term "collusion" and "fine in the billions" otherwise, not interested.

Does it surprise anyone that McCain gets called out on this nonsense? It's lame - you know it.....your just a little embarrassed, we understand. The real outrage however, was McCain's comments on Capital Gains, in the same speech no less! The notion that lowering it could actually help the poor? Hilarious. Obama and Pelosi are simply able to comprehend that a fake tax break for the "poor" needn"t equate to a "real" one for the "rich" if I can oversimplify for a moment.

Then again, those that buy the fuel tax holiday " I suppose would buy that Capital Gains has ANYTHING the F to do with the poor........or even middle class for that matter.

[Christopher1]

Nancy Pelosi sucks as bad as Obama why should they care about us??? They have the government pay for taking them every where and own million dollar homes, they vote for what benefits them never thinking of us.........

[mntnguy]

Everyone! Google Paul vs Clinton and hold on to your shirt with what you read!! I can not believe this is being hidden so well by the media and Clinton supporters claim she has a chance of winning once she is convicted in this case that she is apparently guilty of along with Gov Ed Randell and Former Pres Clinton. This will all be over soon! I know the superdelegates are watching this!

Go Obama 08 Yes We Can!!!!

P.S. If you want to see a video of one of Clinton's top aide in her campaign office called the people of Indiana SHI_! Then check out the video that is what her people really think snakes all of them liers and snakes!!
http://www.youtube.com/watch?v=e-MzByUHIzw&feature=email

[TimRivers]

Well then - think about yourself for a change and actually READ up on why this "gas tax holiday" is such a bad economic idea.

Gas prices rise in the summer drive months because there is increased demand (supply and demand economics). Refineries run at near 100% capacity during those months to keep up with demand. Dropping the tax will not keep prices from climbing and traditionally, the rise 20-25 cents/gallon during the summer. So dropping the gas tax will cause prices to rise only by 2-7 cents/gallon. $0.07/gallon, with 15 gallons average fill-up, once a week, is and extra $4.20/month. Where is that $10/month now?

Now, because we "dropped" the price of gas, the demand increases because more people can afford to drive now so guess what happens (supply and DEMAND)? Since the refineries cannot refine more gas (because they are already operating at near capacity), the price increases even more dramatically!

Obama was right - people don't vote for their own economic self-interest!

[randyjet]

All Obama supporters who consider themselves progressive need to go to Sen.Bernie Sanders I-VT web site and see what HE says about the oil crisis. Also, you need to go to Star-Telegram.com/ed_wallace and see his article Thank You Bubble Boys for the FACTS. You also have to ask why does Obama believe W Bush NOW about the price rise. Bush has LIED about the fact that US demand is growing. IN FACT is has gone down by 4% from this time last year. The reason the price is going up is NOT because of demand, but because of oil future speculation. Guess WHO is heavy into that? The EXPERTS and it looks like Pelosi too.

This is why ordinary working people don't like Obama because he caters to the rich who can care less how much THEY have to pay. Pelosi is wanting to allow the rich to keep on driving as they like and screwing the rest of us by letting oil prices rise and cutting our necessary driving. By letting prices rise and doing nothing. Pelosi simply re-inforces the class bias of Obama and his supporters. They are also the ones too who have invested in the oil futures market. No wonder they are opposed to doing anything to drive down oil prices.

[mntnguy]

Everyone! Google Paul vs Clinton and hold on to your shirt with what you read!! I can not believe this is being hidden so well by the media and Clinton supporters claim she has a chance of winning once she is convicted in this case that she is apparently guilty of along with Gov Ed Randell and Former Pres Clinton. This will all be over soon! I know the superdelegates are watching this!

Go Obama 08 Yes We Can!!!!

P.S. If you want to see a video of one of Clinton's top aide in her campaign office called the people of Indiana SHI_! Then check out the video that is what her people really think snakes all of them liers and snakes!!
http://www.youtube.com/watch?v=e-MzByUHIzw&feature=email

[KDH]

Pelosi's only against it because Obama is. Obama is only against it, because he doesn't want to look like he's a follower. As for losing money for bridges..... what money? The GOP axed any money for bridges.

[MRb1000]

He is doing it because it is the right thing to do. Hillary and John Mcinsane are doing it to tell you what want to hear when it will not help anyone. A three year old could figure this one out.

[Merin]

Find one economist, one business man, one truck-driver . . .

NO ONE THINKS THIS IS A GOOD IDEA.

This is pandering at its worst. It's like the "tax rebates" the Republicans keep giving us (oh, wait, the Dems did it this time too) - the damage done by raiding the tax money is far worse than any help individuals get by getting $300 or $600.

[TimRivers]

Look at the cold hard facts. Get a calculator out and look at what you'd REALLY "save":

Based on past summer increases (average of $0.20-$0.25/gallon) you will not see ANY savings from dropping the $0.184 federal gas tax - you will be paying more in June than you are now. The down side to that equation, while you are still not saving any money, the Federal Highway Fund LOSES $9-$12 BILLION over the course of the summer. That's money that pays for road repairs and such. So, you support the gas tax holiday, still pay more for gas AND your roads are in worse shape than before this all started! How is that a sound economic policy?

As for taxing the "windfall profits of the oil companies"...do you know how simple it is to get around that? All they have to do is to reinvest any "windfall profits" back into "research" and viola! no "windfall profits" to tax, so no money back into the Highway Fund.

Its a proposal that makes no sense, has no backing from people who truly understand the situation, will cause more harm than good and is designed to pander to people who truly don't understand it.

Go Obama!

[ebbtide]

Dear Nancy

You have allowed George Bush to get his way and run roughshod over our country for eight years without a wimper of rejection. You, dear lady, have allowed it and to top it off, in an amazing display of defeat from the beginning, declared right off, while smilng and wavin your gavel as leader, said "impeachment is off the table" How swell

[naschkatze]

In one of the early debates, Mike Gravel said that the party's front runner has tremendous influence on the agenda her party pursues in the Congress. I think many a senator and representative was fearful of crossing the annointed and inevitable frontrunner for so long. Nancy is dead right on this issue.

And by the way, where the hell are you coming from? Nancy Pelosi has been Speaker for the last eight years?