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Clinton On Board With McCain's Stupidest Idea to Date |
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I've been meaning to write about the McCain gas tax "holiday" for a couple of weeks now, since every time someone in the news mentions it I become viscerally enraged at its stupidity.
Here, from his website, is a central feature of the McCain economic plan:
- John McCain Believes We Should Institute A Summer Gas Tax Holiday. 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
Here is some indisputable, totally objective straight talk: This is an awful idea. Americans don't need to pay less for gas, they need to pay more. Artificially low prices for EVERYTHING — from energy, to credit, to wars — is what got them into this mess, and telling voters they're now entitled to a break from high fuel costs is tantamount to feeding a fat kid chocolate bars to make him feel better about his weight. As one commentator on NPR's Marketplace noted a couple weeks ago, even if we suspend for a moment the unacceptable ethics of making gas cheaper during a period of intense climate change and of "raiding" the federal highway fund (which this tax cut would do) when bridges are collapsing, this "holiday" can't even boost the economy temporarily:
Here's the problem: Refineries run near capacity every summer as families rack up miles on their vacations. That's one reason why gas prices always jump in the summer. If McCain's excise tax cut did translate into lower prices, we'd want to drive even more and burn more gasoline. Since the oil patch can't boost production much without building new refineries, the price has to go back up.
Higher prices could stimulate a little more production and we might import more gasoline from our neighbors, but that response will be modest. Supply constraints will push pump prices near their pre-holiday levels. If that didn't happen, there would be shortages.
In fact, the only group this tax cut could POSSIBLY help is oil companies, who would enjoy the benefits of higher sales without having to internalize, or for a summer even pass on to consumers, federal taxes on gasoline. Oil companies, of course, are enjoying a golden age these days, what with an all-expense paid war in the Middle East ensuring supply and folks all over the developing world demanding cars. I'll remind readers that Exxon Mobil made the 2008 Fortune 500 with just over $40.5 billion in net profits last year, the highest profits ever recorded in the history of business, while Chevron made $18.6 billion and Royal Dutch Shell broke European records with $27 billion.
Now, if all of this isn't enough to make you think "well shit, everyone knows John McCain isn't really looking out for low- and middle-income Americans," this absurdity showed up in the NY Times this morning:
Senator Hillary Rodham Clinton lined up with Senator John McCain, the presumptive Republican nominee for president, in endorsing a plan to suspend the federal excise tax on gasoline, 18.4 cents a gallon, for the summer travel season.
If ever I was in doubt that Hillary Clinton is an utterly soulless, self-serving panderer of a politician, the issue was settled this morning. Supporting a gas tax break is a shameless plea for votes from a truly desperate woman, and my only fear is that equally-desperate Americans will scratch their arms and play along.
Everyone, please note that while Clinton flails around this issue, my man calmly refuses to sell the kool-aid:
Senator Barack Obama, Mrs. Clinton’s Democratic rival, spoke out firmly against the proposal, saying it would save consumers little and do nothing to curtail oil consumption and imports…
At a meeting with voters in North Carolina on Monday, Mr. Obama said lifting the gas tax for three months would save the average consumer no more than $30, a figure confirmed by Congressional analysts. Mr. Obama has previously dismissed Mr. McCain’s proposal as a “scheme.”
“Half a tank of gas,” Mr. Obama told his audience. “That’s his big solution.”
His, and now Hillary Clinton's as well.
Perfect analogy!
And of course, the assumption with the McCain proposal as that if there is a tax holiday deleting 18 cents of federal taxes, that the gas companies would keep their prices at that new lower price. Their history doesn't lead to that conclusion.
You seem to have missed the part where Clinton would impose a new "windfall tax" onto oil companies to make up the difference. Obama wants to keep the taxes as they currently are, with the average joe.
Because when the oil companies pay taxes, that cost is never passed on to the consumer!
Exactly!
RFTA, thank you for your comment but I didn't miss that part at all. Obama actually suggested the windfall tax first, in Indiana last Friday.
"Artificially low prices for EVERYTHING %u2014 from energy, to credit, to wars %u2014 is what got them into this mess"
You start with a blanket statement with no evidence to support it, which made me doubt your whole article. Do we not live in a free market society?
Any time we can get some of our taxes back from the government, we've done ourselves a favor by limiting the size and power of government, if only a little.
$1,236,259,000,000
that is how much money the Federal government took in just individual income tax (in 2006).
The oil companies don't force you to buy their product. The government forces us to give them record windfall profits (in the form of tax revenue). At least the oil companies are giving me a useful product for my money.
The Federal Highway Fund gets raided all the time. The bridges aren't collapsing from lack of money. It's because of money mismanagement and corruption, period.
The government has sold us nothing but failure and it's time for them to give us our money back.
~ Mike
Doing too many "favors" for ourselves has created the vicious cycle were in now. That's what this piece is all about. What about sacrifice? Sacrificing a little of our own for the greater good to others. I have no respect for self-centered ideologies that only take into account personal gain. Good luck forming meaningful relationships with those who will tolerate being around you and your hording ways.
well stated hannah
Prices are artificially high, not low. It's based on the falling dollar and oil commodities speculation. Gas prices are also based on refinery capacity, which is also BS. They shut down refineries for maintenance in the summer during peak demand times. All the carious boutique gas types each state wants also adds to the problem.
If the government was actually run by competent people, a lot of these problems could be solved.
Competent people? Sounds like a recommendation for Obama!
This whole issue smacks of trying to buy people's votes. Hey, I'll put a chicken in every pot if you vote for me! And as pointed out, it is unlikely that this will actually translate into lower gas prices for consumers. How cynical can you get? I'm guessing we will find out.
By removing the gas tax we make our already unsafe highways unsafer. The Bridge in Minnesota was suppose to be fixed through these funds, The state of Colorado as problems with there bridges which they are unable to fix with out this money. Hillary claims her windfall tax will cover this but again going back to the "free market" system and some fancy accounting the oil companies run some numbers and figure out how to come ahead by charging the most for gas and skating through some "windfall" loophole. This policy is a half baked idea bought into by those who are naive.
Hell, gas here is up over 10 cents in the last week… By the end of the Summer it's going to be $5/gal. We need dollars of help NOT cents!
the only one making sense with the gas prices (& economy) is Ron Paul. He is also the only one making sense with the war machine and how we are borrowing to fund it.
Just look who has the best selling book at Amazon right now and the press doesn't report it.
http://www.amazon.com/gp/bestsellers/books/ref=pd_dp_ts_b_1
I have read about 3/4 s of it and wow does he make a lot of sense.