Clinton calls for gas tax holiday
Hillary Clinton will call today for suspending the federal gas tax this summer, trying to appeal to voters in Indiana and North Carolina struggling with record-high gas prices.
John McCain, the presumptive Republican nominee, first called for the so-called gas tax holiday, which would lift the 18.4-cent federal tax on each gallon of gas and 24.4-cent levy on each gallon of diesel.
But Clinton distinguishes her plan by saying hers is paid for -- by imposing a windfall profits tax on oil companies -- and wouldn't bleed tax revenue from the Highway Trust Fund, which pays for repairing bridges and roads.
Clinton also said she will make sure that the tax suspension is passed on to motorists by ordering the Federal Trade Commission to aggressively oversee service stations. Democratic rival Barack Obama has raised that concern in so far not supporting the gas tax suspension.
Both Clinton and Obama have similar plans to reduce oil dependency over the longer term.



Let's see...Cut gas taxes which will increase demand without doing anything at all about the core problem, which is neither the supply nor demand of oil, but the falling dollar.
At the same time, increase taxes on oil companies so they have no incentive to explore and produce. Cut supply and increase demand. What does that do, Hillary?
It drives prices up! Any high school economics student can tell you that.
But I don't think most Americans see it that way, Bob. That's how we ended up with W and McCain and Clinton. They're all too short-sighted.
Stupid stupid stupid stupid stupid.
What a sad state of affairs that at this point we don't have one candidate with the guts to propose solutions that actually work and can actually be implemented. Will the candidates say in the very same breath that our highway infrastructure is crumbling and we need more investments in roads, because good infrastructure is HUGELY important to the health of our economy? Or will they wait until a different speech to say that, so they don't look like the hypocrites that they obviously are.
This campaign season is utterly exhausting.
You do realize I hope that 18.4 cents per gallon over 14 weeks in the summer when the average driver puts on 1,000 miles a month and gets 20 mpg equates to $32, don't you?
I suspect Clinton and McCain have done the math and hope that the voters won't.
Cut gas tax is stupiest idea and white working class will buy in. This will damage the country and American than helping. The house foundation is corrupting, McCain and Clinton want to fix the roof? The core problem is with American who drive big cars with more gas and don't know how to save the earth valuable sources. Americans are to blame for the current problems. I am an independent, but I support Obama's opposing gas tax cut.
Roads & bridges must be fixed before lives lost due to bridges collape.
Dead Tired,
You must be tired because Clinton's plan acknowledges the issues with our highway infrastructure by protecting the Transportation Trust Fund. She wants to make the Oil Companies pay for this. Whether or not it's a lot of money to individuals it would be a lot of money to Oil Companies and would send a clear message to them that they cannot continue to squeeze the American People for record profits quarter after quarter.
McCain's plan does not highlight how he would pay for this and we must assume it would be at the expense of the Transportation Trust Fund that directly benefits from the 18 cent tax.
I have not seen any candidate step up and say they would stick it to the oil companies except for Clinton.
Shahn,
If the gas tax is used to fund highways, then the gas tax is about as efficient as it gets. The people that use the roads the most pay for them, which should appeal to everyone's sense of fairness. In addition, unless one side is completely inelastic (which is rare), then both the consumers and producers share the burden of the tax. That seems fair to me as well. In fact, most analysis indicates that SUPPLY is relatively inelastic. In that case, the tax cut benefits the suppliers! Is that how you support "sticking it to the oil companies"? Open a textbook.
What will an 18 cents gas tax suspension do to stop the projected $200 per barrel oil prices announced by OPEC today? If oil prices reach $200/barrel, we will pay $5 or $6 per gallon for gasoline. I wish politicians would be honest with us and simply say that they DON'T have a solution for high gas prices.
I don't think it's wise to cut the much needed funds (highway trust fund @ $0.18/gallon) to score temporary political points. After the bridge collapse in St. Paul, MN, all the politicians in Washington lamented about our crumbling infrastructure and the need to invest more in our bridges and roads. As a citizen and taxpayer, I am tired of these politicians insulting my intelligence and lying to me about what they are going to do for me. I am feed up and sick of these games and these strange people....Robert
Zach,
If you think the people who use the roads the most pay for them then you have a dim view of where your money goes.
What's pitiful about this silly and lying woman's position is that the Federal take on gas sales is small but necessary for keeping our miserable roads less miserable. She should be talking about a big windfall tax on oil companies retroactive to 2006. But she is beholden.
I don't understand the criticism of Clinton's proposed Gas Tax Break. It may not supply savings for a LONG TIME, but what is wrong with a little savings now while we wait for a bigger better Gas Tax Plan later??
I wish hillary had opted for this gas holiday a few years ago -- I might have been able to save $28 and been able to afford her hardcover autobiography which sold for the same price. Perhaps she and Bill should give discounts on their public speaking engagements too.
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