Is the proposal of a Gas Tax Holiday proof that Obama is the one candidate who truly understands the economy?
**I understand you are passionate about your candidate and ready to defend them, but please read this entire post and consider it before posting. thanks**
Originally by McCain and later adopted and revised by Senator Clinton, the gas tax holiday is a proposal to suspend all taxes on gasoline for the summer months, effectively saving each consumer 18.5 cents per gallon of fuel. Seems like a lifesaver at first glance, does it not?
But analyst are criticizing the outcome. Here's the deal folks.
It is estimated that the average consumer will only save a total of about $30 from the proposal(*a). Not bad per say. Although the savings are small, no American is likely to turn down $30. But there are negative effects of having such a tax break, and those are substantial.
That tax money is used for infastructure and public roadways. In fact, in 2007, Hillary CLinton made infastructure a focus point of her campaign following the Minneapolis bridge collapse. At the time, she had proposed allowing 10 billion dollars of federal money to repair and rebuild infastructure across US roadways (*b). This tax holiday would, according to the American Society of Civil Engineers (ASCE) cost our infrastructure 8.5 billion dollars, and more than 250,000 American jobs (*c). North Carolina alone would lose thousands of jobs (*f)
Now, to be fair, Clinton proposes a Winfall Profits tax on oil companies, her intentions being to not strain U.S. infrastructure. But is is estimated that the pretax price of oil will simply raise higher, causing more damage to the consumer, as it did in the 1980's (*d, *e). It's clear that Clinton's plan will not help anyone, and McCain's will actually cause substantial pain to the American Economy.
It appears the only candidate to correctly oppose the Gas-Tax Holiday is Obama. What does this say about his understanding of economics?
*a- American Public Transportation Association, http://www.post-gazette.com/pg/08111/874648-147.st...
Jay L- that's not my math. it's the APTA's math. Check the links.
And that's on average, for all americans. Not the average for "Jay" on a week by week basis. You cannot just factor in your average, as you may drive more or less than others.
So...the math is right, and your logic is mistaken.
Thomas M- none of my links are from the Obama Campaign. They are from analyst and government agencies. Why do you think I'm simply repeating Obama's words?
Yeah it did...by 1/2 of a percent!! nice try...
- 1 decade agoFavorite Answer
People will slander your sources as being left wing rags..rather than answer the question.I do believe that you are correct.At least the theory is...the numbers can be made to say anything one wants them to say,so thats harder to nail down.Obviously 25-30 bucks isnt going to do anyone much good...what is that a pint of gas?
I do believe that Obama understands the economy.Certainly McCain has even stated he doesnt know much about it.I think Hillary just doesnt care,that she will say or do anything to win...I see what they are doing as trying to buy votes,if politicians can buy a vote for 30 bucks...why even have campaigns?Wouldnt it be simpler just to bid on each persons vote and settle it that way?Obama understands that this is not going to do a hell of alot to help the average person and will ultimately damage our infrastucture.It will be spun as him being a tax and spend liberal,and most of America will buy it..because most people dont follow the elections as closely as you or I might.Most people turn on the news occasionaly and catch a story or 2 and make their decision based on that which they hear,and since the media has had wall to wall rev Wright coverage and little else,that will be the issue most vote on.Sad,but true.Hundreds of years ago,people fought and died for our right to vote,and most of us now take that for granted,I find it sickening that in many places in the world people are still dying every day so that they mey have a say in their countries politics,and here ,instaed of even educating ourselves on what is going on...we go out and by some shiny new trinket that we feel will make our lives better.(made in China or Mexico in all probability)If people would care half as much as I do,the politicians would be forced to do the peoples bidding and the corruption in our govenment would certainly be curtailed.Its time for someone like Obama to inspire people to care again....even if he loses he has awakened many to what is going on,and I cant see how that is a bad thing.
- 4 years ago
Your source "d" has a great analysis of the fallacy of the Windfall Profits tax: The U.S. debate over which group of people — workers, shareholders or consumers — ends up paying the bulk of these corporate taxes will go on forever. But the undisputed and most important point is that individuals pay taxes, not corporations. Therefore, attempts to punish oil companies for "obscene" profits by instituting additional taxes ultimately cause all of us to pay the price. Consumers will pay more at the pumps, and the five oil-producing states that suffered in the oil bust, including hard-hit Louisiana, won't benefit from the boom. In Washington, politicians are acting as if "profit" is a dirty word, and they've painted a bull's-eye on the backs of the oil companies. With the midterm election season coming, we can expect more charges of "oil profiteering" from the profiteers on Capitol Hill. New taxes will be no solution to high prices at the pump. President Reagan's axiom seems apt: "Government is not a solution to our problem, government is the problem." I particularly love the Reagan quote. McCain and Clinton are pandering for votes, plain and simple and counting on voters to just listen to sound bites. Bush thinks giving Americans 1200 bucks is going to placate the people and unfortunately he's probably right. I really love that the Democrats are the "tax and spend liberals", a moniker that has stuck regardless of how completely Karl Rovian and the opposite of the truth it is. Obama thinks before he talks and I really respect that. None of the candidates can know everything, which is why they have advisers. So if the Clinton and McCain advisers think this is actually a good idea, that should tell you something, shouldn't it? rod.swan... Sadly, if you look into Nader, he is not some regular guy. He has made his living off of politics and he is far from poor. I wish I could support him, because I agree with a lot of what he says, but he is a spoiler and I do not understand how someone whose presence in the election that gave us George Bush could even dare to stick his head in again. He needs to STFU and go back to his ridiculous pursuit of bad cars. If you ever researched the whole issue you would see the "conflict" there. Nader sounds nice - he is just another demagogue. Go with someone who can make a difference. Nader is not going to do anything for you.
- SamwiseLv 71 decade ago
I suspect that McCain and Clinton know the economics, but Obama isn't willing to go quite as far in nonsensical pandering.
Yes, it would be very nice to get a small cut in gas taxes, but I suspect that would all be absorbed by the oil companies as they found the market susceptible to 18.5 cents per gallon higher increases. (In my state, there's a huge politically motivated flap over a 2-cent change in the state tax, but I've seen prices jump over 20 cents between one fill and the next.)
Nobody likes any tax. But we've hit the point where politicians can win elections by borrowing money and spending it while they let roads and bridges crumble and equipment fall apart. All they have to do is demonize their opponents for trying to find a way to pay for their parties and clean up the mess. Most of our tax burdens are now the result of having to make up for anti-tax policies.
- acredhead113Lv 41 decade ago
No it only goes to show that this is a very tough issue. The consumer is the one who will have to solve this problem. Only he or she alone can prevent the oil companies making billions in profits.
Moderation in driving your car excessively will hurt the oil companies. Using less gasoline and staying home more will make the price recede.
Instead of driving to the grocery store which may be only a mile away, try riding your bike. It sure is good exercise and you will burn a few calories instead of gasoline!
I do not think Obama has any idea how to address this problem. Anyone can say no! When he comes up with his ideas and presents them as a solution then I would say he is thinking for himself. As it is now he has just good speech writers!
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- 1 decade ago
The government makes 4 trillion dollars a year in the form of taxes. With that said, It's our money not there's, so returning it to help people ease the bur don of rising gas prices is a good thing. To off set government spending maybe congress could cut government spending that it is currently out of control. When i can't afford something I can't just go into my bosses office and raise my pay, I either save or go without. The government should do the same.
- 1 decade ago
I think it's proof that he's not pandering to the voters on this issue. The gas tax holiday has surface appeal but it is a terrible idea that will only give oil companies more profit and will result in less funds for road and bridge repair. McCain and Clinton are both hoping the public will be too stupid to figure that out.
- DaniLv 51 decade ago
Yeah it is like putting a band aid on a gaping wound. It is like the pitiful $300 tax treat. Those who are eligible will spend it on bills and higher fuel prices not for new purchases. The gas tax holiday is robbing Peter to pay Paul
- 1 decade ago
I really hate to say this but in this issue I side with Obama.
Not because I think it is better for the economy, I really don't agree with you arguments and I wont go into that. But because Americans need to stop winning about gas.
Other countries pay WAY more that we do and they don't winne about it. They find better solutions like building better public transportation, using smaller cars, buying local goods, not living in the boonies...
- Darling JLv 61 decade ago
At the very least, he's the only candidate not pandering to voters AND trying to save 300,000+ jobs, which could be lost if the Gas Tax Holiday passes. (Pun intended.)
- misty19492000Lv 51 decade ago
When Obama said:
"Obama also said that pausing the tax would deprive the federal highway fund of its revenue source for needed infrastructure repairs. "
That's not exactly the whole truth, the tax pays for a lot of frivolous things as well, such as, bicycle paths. States carry most of the responsibility for their roads.
I don't, however, think the tax cut would do much good.