Clinton seeks gas tax vote, Obama calls it 'shell' game

MUNSTER, Ind. — Hillary Rodham Clinton called for a vote Friday in the Democratic-controlled Congress on a summertime suspension of the federal gasoline tax, a plan that Barack Obama dismissed as a political stunt that would cost thousands of construction jobs.

"It's a Shell game. Literally," Obama said to laughter from his campaign audience, adding it would mean little for hard-pressed consumers.

The Democratic presidential rivals highlighted their differences in ads and speeches across North Carolina and Indiana, two states with primaries Tuesday.

Polls point toward a particularly close finish in Indiana, which is next door to Obama's home state of Illinois.

Surveys show him with a dwindling advantage in North Carolina, and Clinton decided to spend all of Friday and Saturday in the state before returning to Indiana for a final push. Both candidates addressed the North Carolina Democratic Party's Jefferson-Jackson dinner Friday night.

"North Carolina is going to help elect the next president," Clinton called out to a raucous crowd. About an hour later, Obama told the thousands in attendance, "It starts right here, on Tuesday, right here in North Carolina!"

The two primaries have 187 national convention delegates at stake.

Obama, the front-runner, leads in the overall delegate competition, 1,736.05-1605.5. Clinton won a decisive victory last week in Pennsylvania and is counting on a strong run through the late primaries to persuade convention superdelegates to help her overtake her rival. She picked up the support Friday of Democratic National Committee member Jaime A. Gonzalez Jr., a Texas superdelegate, and two pledged delegates from final results from last week's Pennsylvania primary.

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Jolted by Thursday's defection of Joe Andrew, a former national party chairman, Clinton responded with a letter from seven other former party heads and the family of an eighth.

"Her base of support includes women, Hispanics, seniors, Catholics, middle and low-income Americans, and rural, suburban and urban voters. That's a formidable coalition tailor-made for victory in a November general election," they wrote.

They added that if the election were held today, Clinton would defeat Republican Sen. John McCain and win the White House. "Obama would lose to the presumptive GOP nominee," they wrote.

Polls are equivocal on that point. Moreover, they have been particularly volatile in recent weeks as campaign criticism takes its toll on the two Democrats and Obama grapples with controversy stemming from the rhetoric of his former pastor, the Rev. Jeremiah Wright.

Despite a fierce, occasionally personal campaign, to a surprising degree the former first lady and Obama have generally agreed on most policy issues.

That made the proposed suspension in the gasoline tax an exception.

And while there is little support among the Democratic congressional leadership for the plan, it was a disagreement that both presidential contenders appeared content to perpetuate.

"All I hear about is gas prices. Gas and diesel, everywhere," Clinton said in Kinston, N.C. "Some people say we don't need to get a gas tax holiday at all, it's a gimmick ... I want the Congress to stand up and vote. Are they for the oil companies, or are they for you?"

Later, in Hendersonville, she added, "I know where I stand and I know where my opponents stand. ... Senator Obama doesn't want us to take down the gas tax this summer and Senator McCain wants us to, but he doesn't want to pay for it."

Clinton has proposed making up the lost revenue by imposing a windfall profits tax on oil companies.

Obama's rhetoric grew sharper, as well.

"She even borrowed one of Bush's favorite phrases," he said dismissively of the New York senator. "She said every member of Congress should have to tell us whether they are with us or against us."

He said the average consumer would save a "quarter and a nickel" a day, and only $28 in three months.

McCain also favors the gasoline tax holiday, and Obama said sarcastically that showed Clinton "has his vote," and that the two are reading from the same political playbook.

McCain told a town-hall audience in Denver: "I want to give the American consumer a little bit of relief just for the summer. Maybe they'll be able to buy an additional textbook for their children when they go back to school this fall."

Clinton launched a television ad several days ago critical of Obama on the issue.

"The economy's in trouble. When the housing crisis broke, Hillary Clinton called for action: a freeze on foreclosures. Barack Obama said, no. Now, gas prices are skyrocketing, and she's ready to act again. ... Barack Obama says no, again."

A new Obama response ad airing in Indiana in the campaign's final days calls Clinton's gas tax holiday proposal "an election year-gimmick, saving Hoosiers just pennies a day."

Within the congressional leadership, Clinton's position has found relatively little support, and no votes are currently anticipated in either the House or Senate.

"First of all, there is no reason to believe that any moratorium on the gas tax will be passed on to the consumer," House Speaker Nancy Pelosi, D-Calif., told reporters on Thursday.

"... This has not been the history of a lower gas tax being passed on to the consumer. Second of all, it would defeat everything that we have been trying to do to lower the cost of oil."

In the Senate, Majority Leader Harry Reid, D-Nev., said recently that rank-and-file Democrats are divided on the issue. A spokesman said during the day there will be no gasoline tax holiday in legislation Democrats intend to unveil next week.

The dispute centered on a pair of taxes, 18.4 cents per gallon of gasoline and 24.4 cents on a gallon of diesel. The money raised goes into a fund that pays for construction of highways and bridges.

In Indiana, Obama said a summertime gasoline tax holiday would cost 6,000 construction jobs. The campaign circulated material showing the estimate came from the American Road and Transportation Builders Association, a trade group. The group said the impact on North Carolina would be 7,000 jobs lost.

___

Associated Press Writer Beth Fouhy in North Carolina contributed to this report.

Comments

[InjunTrouble]

Hillary is using typical republican tactics.

The tactic is to keep talking about tax cuts - any kind, because they know most voters are not smart enough to listen to experts or to figure out the true costs.

Hillary to just join the GOP

[UnbiasView]

There is no such thing as a true cost with a government this large, the abuse of funds is spread so wide no one has any idea where all of this tax money goes.

[OrionGal]

To me, this proposed Gas Tax Holiday is more proof that

1. two of the three candidates did not THINK this proposal through for themselves
2. two of the three candidates did not seek ADVICE before announcing this proposal

3. ONE of the three candidates had the STRENGTH to disagree with this proposal, he had the FACTS for his disagreement, and offered a SOLUTION backed up by economists.

THAT is called LEADERSHIP. THAT is called INTEGRITY. THAT is called the TRUTH.

[dbdzen]

Gas tax holiday = dumb idea. Making ads about it isn't gonna make it smart. Voters who fall for it are being duped.

The only way to make gas less expensive is to use less of it. American consumers, 6% of the world's population somehow think we're entitled to 25% of the world's oil at the lowest prices in the G7.

When Detroit cars do 8 or 12 mpg and Japanese cars do double that, you need real solutions, not pandering speeches/gimmicks. Barack's IMMEDIATE solutions are more sensible than Hillary's.

For starters, voters can drive slower on the highway by 10 mph
1. It can start today.
2. It doesn't take money away from the Highway Fund,
3. It generates lower emissions
4. It's safer
5. You'll save more than $28 over 3 months
6. It doesn't create any new taxes and there's no chance of a price rebound
7. It will reduce the aggregate amount of gas we use, leading to lower prices as demand falls.

I cannot repeat enough, Clinton and McCain presented a dumb idea and they're desperately politicking to save it. If tables were turned, Clinton would be on the stump labeling Obama "inexperienced".

Windfall tax on oil companies, also dumb, unless you really threaten it, force them to build new refineries and then cut oil demand habits, forcing prices to stay permanently at a lower, more sustainable level. The US should be using 8-10% of the world's oil at most. Not 25%.

[905Grape]

So true, so true. If the federal tax has a three month holiday, the oil companies will make even more money. The windfall tax just isn't going to fly. This is all just politics and posturing. Thank heavens at least one candidate knows enought basic math to see immediately that this is a dumb idea.

I have been wondering why there hasn't been more of a move to get people to slow down. The old 55 MPH was imposed to save this country huge amounts of fuel...and it worked whether we liked slowing down or not. Not only that, but there were fewer high speed traffic deaths. Reducing your speed by 10 MPH is a very easy thing for everyone to do. So simple. No gimmicks. Just the personal responsibility to let up on that gas pedal a little. So many are voluntarily recycling cans or using earth friendly cleaning products. Want to save $30 on gasoline this summer and reduce your carbon footprint? Try slowing down.

[rh654]

Obama should go on the attack against Hillary and call her out on this gas tax holiday.

He should tell the American people that this is a test of Hillary's "leadership" - either she can get this gas tax holiday passed and implemented in the next 60 days or it will show that she is NOT the leader she believes she is and CANNOT get things done for the American people.

Obama - tell Hillary to either PUT UP OR SHUT UP on the gas holiday tax.

[UnbiasView]

I don't know if the test of leadership thing would be a good idea for Obama to attack, his resume isn't exactly full with leadership quality or accomplishments.

[BillyT]

Since you cannot read or remember back to 2002, I will name a few for you:

Not voting for Iraq War is #1.

Not pandering to play this Hillary McCain gas tax holiday game is #2.

Among others.

What leadership quality do you have to quote for Hillary McCain?

What kind of idiot would make this gas tax farce a central point of her campaign right now? That's REAL LEADERSHIP.

[secret38b]

http://www.pbs.org/moyers/journal/05022008/watch.html

[ATLiberal]

That is a great read/ view. Thank God for the few honest people left in news media, like Bill Moyers.

[papla]

great video

[UnbiasView]

McCain/Clinton Gas Tax Holiday = Dumb Idea

Obama/Clinton Windfall Oil Profit Tax = Worst Idea Ever

Great, we'll stick it good to those evil oil companies but guess what . . . they'll really stick it to us the consumer and we are already on the edge with this economy and this windfall Pofit Tax would end everyone.

There has not been a single decent economic idea from any of the candidates.

[billrott]

A windfall profit tax is truly one of the dumbest things I have ever heard about. If Congress passes such a tax, it will result in the gas companies increasing their expenses in an effort to reduce their tax liability. Get ready for CEO's to receive larger bonuses, oli companies to buy more toys, etc.

[Dave01]

It took me a while but I think I figured out why Clinton, McCain, Bush, and the rest of the Republicans are looking for a "gas tax holiday".P­rivatizati­on and Immigration!

Does that NOT make sense? Republicans want EVERYTHING privatized and outsourced. Once our roads are put in the hands of private companies then taxes would no longer be in order to keep our infrastructure together. However there is a moral hazard. With privatization would come toll roads. I just think this "gas tax holiday" is being used as a ploy to privatize our infrastructure. Think about it. How are we going to pay for the repair of our roads and bridges while the tax is suspended? Hillary is not a pay-as-you-go type of candidate.....she is a STOP taxing, but SPEND SPEND SPEND neo-con Republican.

Once these infrastructure projects are privatized, workers won't make as much as they do now and so they will not be able to sustain their lifestyle due to loss in wages. The new private companies won't pay them what they were making with the government, hence the employees will be unable to afford working for these private companies, which will result in cheaper labor via new HB Visas being issued, therefore outsourcing our labor.

Call me a conspiracy theorist, but it makes WAY too much sense. I may not be articulating this as well as I hoped, but I think people here can figure out what I'm saying.

[UnbiasView]

Yeah, you're nuts. Try reality, it's a nice place.

[Dave01]

Evidently the line where I said "I think people can figure out what I was saying" use to read "I think people here are smart enough to figure out what I am saying", evidently that doesn't apply to you.

It is unfortunate that Huffpo has a 250 word limit because I had to cut a lot out of it.

[NtFourSale]

It is a "Shell" game.

So was the "Gulf" War.

[Star2000dancer]

I fiured it out for my work van, I'd save $68.00/month. Imagine what truckers would save. We already drive !/2 hour to Indian Reservations just to save 15 cents/gallon. Obama is clueless or lying about the savings. Every penny counts for most Americans right now, we are close to a depression. Istongly doubt anyone would lose a job with Clinton's proposal. And yesterday gas went down for the 4th day in a row.

If you haven't noticed brides are falling down,mines are collapsing, & our infrastructure is is not being taken care of anyway. It will not be taken care of as long as we have a Republican in office. Although I wonder why impeachment was taken off the table & why Pelosi & Reid keep blocking any real proress by the Democtats. But, then again Bush would veto it anyway.

[UnbiasView]

Gas tax holiday is a stupid idea, what happens when the end of the summer happens? A giant increase in a single day.

[ATLiberal]

That means you use 380 gallons of gas per month. If you get 12 miles per gallon (a very low MPG rate), that means you drive 4500 miles per month. I find that to be a tad on the unbelievable side.

Even if you do drive 4500 miles per month, that is WAY more that the average american, who may drive 1000-1500 miles per month. I drive about 800-900 miles a month, presonally. Even at the top end of 1500 miles a month at only 12 miles per gallon (a very low MPG rate), that would be 1/3 of what you claim, which would be $21 a month. Again, that is on the HIGH side of driving (1500 miles per month) and with a pathetic 12 MPG vehicle.

[abigail1]

the gas tax holiday won't lower gas prices. most economists think it would actually raise them either by increasing demand which would lead to shorter supply and higher prices or by the loss in revenue driving up the deficit causing the dollar to sink further leading to higher prices.

this is just a trick, don't fall for it. If you are a Hillary Clinton supporter, stay that way, but do not for a second be fooled into thinking this idea would help you or anyone at the pump.

not to mention the fact that it will cost jobs, lots and lots of jobs. maybe you have one, but lots and lots of people don't.

Please, don't use the fact that bridges are falling down as an argument to cut funding to fix them.

[chinacatsunflower]

i don't understand the logic of driving half an hour out of your way to get cheaper gas

[BillyT]

Star2000dancer:

you forgot one big thing:

your calculation is based on prices staying the same after tax is lifted.

BIG OIL WILL RAISE YOUR PRICE TO WHATEVER THEY THINK YOU CAN BEAR. So if you take the tax away, the price will go up to cover the spread.

This is the piece of logic that Hillary does not want you to know but 150 other econimists and Nobel Prize winners in economics know and are speaking out against her stupid and dangerously deceiving idea:

http://www.politico.com/static/PPM43_080502_list_gastax.html

You will not see much difference at the pump. You might see the prices edge higher to cover the "windfall taxes."

[Birdman]

I can see it now, get rid of the federal gas tax about 14 cents a gallon or 4 percent. Now we are not funding highway repairs, more bridges fall, and the oil companies will raise their prices the 14 cents in a day to reap the extra profits. Ya real brilliant Hillary, you should take some remedial math and business courses.

[UnbiasView]

FYI, the bridge that fell here in Minnesota . . . nothing to do with taxes.

If you really want to blame someone for our infrastucture problems you should ask Bill Clinton, he is the one that started allowing the federal gas tax money to be used on pork projects and all sorts of mass transit. Right now, 60% goes to the highways and 40% goes to BS from the federal gas tax.

[TexasT]

Bull.

The governor vetoed an increase in the sales tax, whose amount was earmarked for infrastructure improvements.

I'm not a Clinton fan, but to say that the bridge collapse in Minnesota had nothing to do with taxes not true.

[MAC2]

Well I guess you can see the stratigic and tactical planning we will get from Slick Willies wife. Just do a copy down from that crazy old man suggestion and fire it out there. Oh well to come up with a real Energy plan would be to much to ask for from Slick Willie just do smoke and mirrior stuff after all they think we are buying there BS.

We wouldn't want to knee cap Enron or Shell Oil companies since they are raping us to make there profits. What bunch of BS, McCain and Slick Willies wifes what a pair to draw to........­..........­..........­..........­no old people and no dynasty

[UnbiasView]

Who profits the least from a gallon of gasoline?

A. Oil Companies
B. Federal Government
C. State Government

(The answer is A, state & federal make more than the oil companies off a gallon of gas)

[chinacatsunflower]

what's that breakdown again?

[BillyT]

That's why our government is bankrupt but Exxon made 11 billion in first quarter this year, "below expectations??"

UnbiasView: what good is that view if you are standing upside down?

[frappe]

Obama should put a quick ad together exposing this gas tax proposal by the McClinton/McCain team as the farce that it really is. If the average voter understood that his "gas tax holiday" would only amount to a $28 savings over the course of the summer, they would laugh Clinton and McCain off the stage.

[Busterdawg]

McCain's Gas Tax holiday proposal is dumb. In light of that Obama looks smart and is right about how the loss of that revenue would hurt highway infrastructure and jobs.

However, Hillary's Gas Tax holiday proposal with the Big Oil making up the difference is smart.

Consumers save some money at the pump with no jobs lost and highway infrastructure dosen't get hurt.

What's the problem with that? Big Oil lied through their teeth to us. The past two years they said the raising cost of gas had nothing to with them inflating the price, that it was the Arabs. Then how come their profit margins didn't remain the same? How come they have made record profits 2 years running? They could care less if the economy gets hurt while their wallets get fat. They could care less about this country. Their should be made to pay.

[Gemma08]

The problem is Economics and the basic law of SUPPLY and DEMAND. There s a clip on youtube by some economist that explains it all. Google it please. I dont have the patience anymore...

[OrionGal]

Here is the original article -

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/30/AR2008043003575.html?wpisrc=newsletter

[abigail1]

Question: What is to stop the oil companies from passing the cost of Hillary's new tax on them onto consumers?

Answer: nothing. And I am sure they will do just that.

[argent1]

Senators are running for president. None of them accomplish a thing by themselves, except to fund more war and increase the debt. Without 61 Democratic senators nothing on Obama's or Clinton's agenda will get done. As of now the present Senate holds the record for filibusters, a strategy put in place by Republican leaders. The chances of Democrats obtaining the 61 majority they need are as good as Clinton's chance winning the nomination. Get over it folks, change ain't gonna happen. The only thing that has worked in the past is a big war (on top of the ones we already have) so that we forget about everything else or a citizens national revolt - which would have to lead to bloodletting.

[BillyT]

The thing is, the only vote of confidence Clinton will get on this shell game proposal is from McCain.

[ChiGuy]

“The ‘gas tax holiday’ debate is a defining moment in the presidential race. The two other candidates responded with sham solutions that won’t ease pain at the pump, but Senator Obama refused to play that typical Washington game. Instead, Obama called for real solutions that would make transportation more affordable and curb global warming. He showed the courage and candor we expect from a president.”

http://action.foe.org/pressRelease.jsp?press_release_KEY=367&t=2007_PRESS.dwt

[Busterdawg]

Oh please, ChiGuy...

Hey, why don't you tell us the fairy tale again about Obama not being part of any Chicago or Illinois Democratic Machine?

[osage]

The purpose of this scam program is to trick voters into thinking their getting a deal when in fact they're getting screwed once again by an ambitious and exploitive politician who thinks voters are morons. Cinton is deliberately trying to take advantage of the ignorance of people who can't see past their "immediate" self-interest at the expense of theirs and the country's economic well-being. While a temporary short-term gas tax abatement gives the "impression" of consumer savings, it maintains the high price of gasoline paid to the oil companies, while reducing the amount of revenue states have to invest in bridge and highway repairs, and provides no reduction in consumption and no incentive for oil companies to lower prices or increase production. It benefits the gas companies by perpetuating their ability to maintain exorbitant profits by ripping-off consumers, and it hurts our nation's infrastructure by reducing the tax revenues devoted to the maintaining America's bridges and roads. Anyone who falls for this scam is a moron.

[justobserve]

Obama should have an ad asking voters: "Do you want to save $30 for the summer gas knowing that saving will cut 6000 jobs?" Let's hear Carolinians and Indianians answer.

[Darqhorse]

He did yesterday in a speech in NC and got an overwhelming round of applause.

[spokensoftly]

The gas tax is not the problem or the solution. Build more refineries to increase supply.
High supply plus low demand equal lower prices.

BTW, that depends on OPEC not decreasing present output of oil. If that’s the case, we need to develop reserves we (US) control. (Can you say "Troops in the Middle East for Oil?")

The key to this problem will always be at the source until we come up with a better substitute or make drastic improvements on miles per gallon.

Will R & D ever let the "tiger out of the tank?"