A Tax Holiday to Nowhere
Hillary Clinton has joined John McCain in proposing the most irresponsible policy idea of the year: suspending the federal gas tax this summer. Both of them know it's a terrible pander, and yet they're pushing it anyway for crass political advantage. The goal is to depict Barack Obama as an out-of-touch elitist, by any means necessary. I could highlight a long debate among economists on suspending the gas tax, but there is no debate. Not one respectable economist supports the idea, unless they are official members of the Clinton or McCain campaigns. For relief at the pump, try tax credits—but not this. Why is the gas pander so bad? Let's count the ways:
• It's a direct transfer of money from motorists to oil companies. If the federal excise tax were lifted, oil companies would simply raise prices and pocket most of the difference. Clinton's proposal to recover the $8.5 million with a windfall profits tax on oil companies sounds nice but won't happen. Besides, she already committed that money to developing renewable energy.
• It offers taxpayers only peanuts. The American Association of State Highway and Transportation Officials says the average savings to motorists would be $30. That measly number was somehow not included in Clinton's explanation of her support.
• It sends more hard-earned money to the Middle East, which is terrible for our national security. Remember, 15 of the 19 terrorists on 9/11 came from Saudi Arabia. How did they get the terrorist training? Oil money.
• It makes it more likely you'll have a car accident or waste even more time in traffic. The proceeds from the gas tax go for highway construction and upgrades. Because the tax was last raised 15 years ago, our infrastructure is a mess, with potholes and dangerous crossings practically everywhere. Thousands of repair projects will be further delayed.
• It will cost 300,000 construction jobs, according to Transportation. Which makes it kind of ironic when Clinton starts her rallies saying she wants "jobs, jobs, jobs."
© 2008
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Member Comments
Posted By: stwood6 @ 05/13/2008 2:09:06 PM
Comment: I agree that a summer gas tax break is not going to help. I think what would help is for the government to give tax breaks to companies that help conserve energy. I am sure there is a large percentage of workers who are able to do their jobs from their homes. This would eliminate some of the problem. Companies should also get credit for creating carpool/ride share programs. The government should make it mandatory that a certain amount of government/contract workers at least entertain the idea of having some workers telecommute.
Posted By: vdadholgate @ 05/10/2008 7:47:58 AM
Comment: Once again, Mr. Alter demonstrates his arrogance and anti Clinton journalsim with a twist,
Alter's arguments about captial spending for road repair and construction sprout from the mouth;s of the oil companies. Mr. A;ter doesn't present an original thought in his article, Stop drinking the cool -aid from Exxon/Mobile and represent the working poor that commute to work everyday.
Posted By: Graves @ 05/09/2008 9:04:17 AM
Comment: I'm into real sulutions. Just doing the blame game is not a fix. The Tax thing is an idea that should be discussed, However all real ideas should be discussed and not just dismissed. Even if it's a bad idea the discussion over it's finer points can lead to a good idea and a solution. The Tax thing is a gimmick. The Government in our system does not have the authority to regulate anything, but taxes, at this moment. However, if the Government could take ownership of all of the off shore oil rights / mineral rights, then they could decide just how much they would charge for it as well as even the salaries of those who are working it. The government may even be able to regulate any profits that are associated to it. The oil is our national treasure and the off shore oil belongs to the citizen not the oil companies. The Government is also in charge of all the shipping and receiving to this country. Mostly in permits. With this in mind. They may be able to regulate a price for the crude oil coming in as a condition to the permits. More off shore drilling in our country must take place and the Dems. must OK more refineries. I would be Ok for citizenship many of the illegal families here already, If a family member agrees to go to Iraq to guard the pipe line. This is to get the flow going and to maintain it. I know I would welcome them then, as they would have earned my respect. I understand. The oil speculators must also be rained in. What is their excuses to them driving up the price of crude. Lets list these things and one by one remove the excuses. Kyle in Baltimore