Senators Hillary Clinton and John McCain have challenged Senator Barack Obama over his refusal to support their proposal that would suspend the .18 Federal gas tax for three months this summer.
The problem?
A near-unanimous chorus of protests from experts, economists and environmentalists, all of whom support Senator Obama's position that the 'holiday' would net less than thirty cents a day for consumers -- if there is any net at all -- since, historically, oil companies have absorbed the savings without passing them on, while the loss of revenue from the tax would reduce the transportation infrastructure trust fund that is the source of income for thousands of American workers and the safety net for our highways and bridges that are currently crumbling.
Environmentalists have added that it would likely lead to more gasoline usage as at time when we need to reduce our carbon footprint due to the impact of climate change.
The 'expert' in support of Senators Clinton and McCain in this scenario so far?
Spokesman for the Clinton campaign and SHELL OIL LOBBYIST, Steve Elmendorf.
To which, Senator Obama responded:
"In a moment of candor, her advisers actually admitted that it wouldn't have much of an effect on gas prices. But, they said, it's a great political issue for Senator Clinton. So this is not about getting you through the summer, it's about getting elected," Obama argued. "This is what passes for leadership in Washington, phony ideas, calculated to win elections instead of actually solving problems."
The environmental organization, Friends of the Earth, has endorsed Senator Obama, citing the gas tax issue as false and lauding the Illinois Senator for standing up to political pressure to tell the truth about it. Newspapers across the country have also weighed in with their criticism, including this quote by one of Senator Clinton's own supporters:
"I was appalled by Hillary going with the gas tax," said Alice M. Rivlin, a budget director under former President Bill Clinton who supports Mrs. Clinton for the nomination. It "looked like pandering," Mrs. Rivlin said. An open letter signed recently by more than 100 economists said the proposed tax holiday would do little to reduce gas prices. In part, that is because a fall in prices would lead to more demand, which would cause prices to return to their earlier level. The result would be that overseas oil-producing governments would get money now flowing to the United States government in gas taxes.
What is also being lost in this pandering: the fact that this idea was first floated by John McCain and then picked up by Senator Clinton as a way to differentiate from Senator Obama.
It does differentiate. It was cited as the reason for the Friends of the Earth's endorsement and one of the tipping points that motivated super-delegate and former DNC Chairman, Joe Andrew, to change his allegiance from Senator Clinton to Senator Obama.
Andrew said the Obama campaign never asked him to switch his support. [...] He said Obama took the principled stand in opposing a summer gas tax holiday that both Clinton and McCain supported, even though it would have been easier politically to back it.
Nearly every expert, with the exception of a Shell Oil lobbyist, concurs: the 'Gas Tax Holiday' would be a windfall for the oil companies and offer the consumer little or nothing beyond a political advantage for Senators Clinton and McCain, which would be a win for politics as usual that, as usual, would provide next to nothing for the voter in the process.
It is a shell game.
More on this topic at THE ENVIRONMENTALIST
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The stupid idea that the gas companies will simply hike prices would ONLY be true in a free market IF gas supplies were short. At present gas inventories are near record levels for the last few years. Refineries are running at slightly over 80%, and Valero has cancelled expansion plans because of this. Why do Obama supporters not cite FACTS? Instead of stupid uninformed opinions.
It is also a lie that the Trust Fund will be denied any money under Clinton's plan since she proposes replacing the loss with a tax on oil companies profits. It is also a lie that there is any money in the Trust Fund since there is NO MONEY in it at all now. It is a paper fund as are ALL such trust funds except SS. If there is no money for roads, it will only be because Congress will not allocate the money for it. Any intelligent person knows that as does Obama, because this has been the case since 1967.
Go to Star-Telegram.com/ed_wallace to see the FACTS and look at Thank You Bubble Boys which details how the speculators are the ones driving up the price.
I conclude they thought they would get a real nice job somewhere in the Clinton administration when they jumped in headlong at the beginning of her campaigh when it was "certain" she would win.
He has been smearing Obama on multitudes of issues that he has no authority of. Now, where is Mr Krugman the economist on this issue of gas tax? If he is a genuine arbiter on the issues why is he not coming out like the other economists and call this gimmick what it is? Or is he quiet because he is not supposed to criticize Hillary no matter what?
I'm done.
Pandering for votes by suggesting a 30 cents/day holiday gas tax = cheap political trick.
Threatening to 'obliterate" Iran = a dangerous political trick.
Engaging in a 'scorched earth' policy with no regard for the Democratic Party or the plight of millions of Americans who need a real change in Washington this November...not 4 years from now when she might run again after attempting to sink the last Democratic candidate's chances....
I'm done, done, done. With the Clintons-the lot of them.
I not only vote; I am the President of one of the largest Democratic Clubs (over 1,000 members) in the country. I register voters. I talk with voters. I have a very large family throughout the country.
I am donating to Barack Obama and will work like the dickens for him...and for all of us.
Thank you, Hillary for making it easy to dump you.
Now..I hate the idea..but NIXON of all people...lowered the speed limit. I live in Los Angeles..and would HATE..55MPH...but come On..we are in a crisis...instead of a "tax" holiday..how about just fricking slowing down? we are such babies...don't want to sacrifice..just want that quick fix...
55MPH...would more than compensate for NOT getting our little holiday from the gas tax..and lord knows...the tickets that would come...could help with state budget deficits...
So...solutions are important but it doesn't matter what this "solution" will do? Why bring it up in the first place? Wouldn't that be just "talk"? -Come on.
Will 18 cents a galon (assuming oil companies don't jack up prices) allow your aunt to finaly drive her car?
You can stil support Senator Clinton without having to agree on everything. Have a little common sense, Obama is right on this one.
This is extremely disappointing, and seems to be veering towards a Bush-ian view of the world - ignore the facts and the experts - we make our own reality.
When we started this race we had two great candidates - I wonder if that is still true?
Alin