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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:
