BlogHer - Gas tax holiday: Help or Hype? - Comments

The Gas Diet

Pam — Thu, 08 May 2008 14:19:56 -0500

This aggravates me in so many ways. We're still seeing roads full of gas guzzling SUVs, we're still treating fuel like a "right" not a commodity, we're still not investing sufficient resources in alternative transportation. Instead, McCain's idea is to give a price break to gas junkies for the summer? What? Huh? I don't get how this solves our dependence on foreign oil. I don't get how this encourages reduction in use. I don't get how this is advantageous at all except by pandering to voters who whine about how much gas is costing them without pressuring their lawmakers to provide alternatives.

Furthermore, this amounts to price control and gov't subsidies (I think) and from a Republican anti-gov't in your business point of view, this seems really contrary to party values.

The gas diet isn't a better way for the long term, it's the only way. A temporary price break on gas is like giving us a temporary price break on fast food. It's not good for us, we shouldn't be addicted to it, and we need to find a another way.

Nerd's Eye View

Problems...

MommaMary — Wed, 07 May 2008 23:02:40 -0500

I watched some news piece on this last night, and they brought up some good points, like:

1) So they suspend the tax? How do we know that the oil companies are going to keep the prices? So, now gas costs 3.75 instead of 4.00, but why would the gas station owner lower the prices to 3.75 when people will pay 4.00?

2)The "savings" aren't as much as you'd like to think. Think about it. If you fill your 16 gallon tank once per week, for twelve weeks (all summer), you are going to save (16*.184*12) 35.33. So, what can you buy with that? 7 gallons of milk? 7 meals at a fast food restaurant? You're not saving enough to do squat. Most people aren't going to notice $10 per month...

I think that the Gas Diet is a MUCH better answer. Oh, and figuring out what we are going to do in the long run... We need to SOMEHOW stop our dependencies on foreign oil. (God help me I sound like the GW)

Gas tax holiday: Help or Hype?

Kim Pearson — Wed, 07 May 2008 22:21:16 -0500

Would a proposed federal gas tax holiday give consumers much-needed relief at the pump. or would it lead to higher gas prices, more unemployment and fewer resources for critically-needed road maintenance? The three leading presidential candidates don't agree, and neither do bloggers.

Sen. John McCain was the first to call for a suspension of gasoline taxes during the summer months of this year, as part of a broader economic plan. His website says:

Hard-working American families are suffering from higher gasoline
prices. John McCain calls on Congress to suspend the 18.4 cent federal
gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day.

In early May, Sen. Hillary Clinton also endorsed a gas tax holiday, financed by increased taxes on oil companies. She explains her position in this video:

As Clinton said, Sen. Obama has rejected a gas tax because he says it will hurt consumers in the long run, and many economists agree. TaxProfBlog has a comprehensive roundup of expert analysis of all three candidates' positions.

Susie Madrak argues that Obama's criticism of Clinton's plan is all wet. Among her reasons:

The media has attacked the Clinton plan for not being supported by the
think tanks and economists. But there are a few economists out there —
such as Bill Polley — who point out that if short-run demand is also
inelastic, it is “not a foregone conclusion that the suppliers will get
all the benefit.” In fact, Polley concludes that consumers would get a nickel a gallon or more benefit — not much, but better than nothing.

Sarah Mae notes that representatives of the construction industry say that a gas tax holiday would cost them thousands of jobs.

Meanwhile, some political analysts say Clinton's emphasis on this proposal might have hurt her in yesterday's primaries, because Obama and others were able to dismiss her proposal as political pandering. Here's James Oliphant:

I believe Obama's pushback against Hillary
Clinton's proposed gas tax holiday (first put forward by John McCain)
was a decisive factor. After a listless several weeks, Obama came back
to life in taking on a proposal that even Clinton supporters saw as
pandering. (Emphasis his)

BlogHer CE Catherine Morgan urges consumers looking for relief to become masters of their fuel-consumption domain, instead of depending on politicians:

Don’t expect a gas holiday…Go on a gas diet. How do
you do that? If you normally fill your car up once a week, see if you
can reduce your driving enough to make it to day 8 or 9 (keep track of
it on your calender). Once you have done that, try to cut back some
more. Put yourself and your car on a gas diet.

Of course, if you don't want to follow Catherine's advice, you can always listen to Stephen Colbert: