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Obama says change in Washington needed to deal with soaring gas prices

Posted by Foon Rhee, deputy national political editor April 25, 2008 12:29 PM

With gas prices hitting record highs and Republicans hitting him for what they call a flip-flop on a gas tax holiday, Barack Obama said today the answer lies in long-term investments in clean energy and energy efficiency -- and sweeing change in Washington.

Lumping together Democratic rival Hillary Clinton and presumptive Republican nominee John McCain, Obama said the Washington establishment has utterly failed at needed changes in policies, such as increasing fuel efficiency standards.

"Even with all the experience they talk about, nothing has happened," Obama told reporters in Indiana, which holds its primary May 6. "It's time to free ourselves from the tyranny of oil."

Obama, without mentioning his opponents by name, also responded to criticisms from them.

The Republican National Committee is accusing him of "ignoring" his own record and soaring gas prices because Obama opposes McCain's proposal this month for a gas tax holiday this summer by temporarily suspending the 18.4-cent-per-gallon federal levy even though Obama supported a similar measure on the state gas tax while in the Illinois legislature in 2000.

His campaign points out, however, that he voted against a permanent reduction of the Illinois gas tax because the savings weren't being passed on to consumers, and that's a key reason why he opposes McCain's proposal. (Politfact.com rates the RNC attack as "barely true.")

In Indianapolis today, he cautioned that "there's no easy answer to our energy crisis" and it wouldn't come overnight.

UPDATE: McCain spokesman Tucker Bounds said in response: "Barack Obama rolled out the cameras, and then said nothing about his new opposition to immediate price relief for hardworking Americans who are seeing record prices at the pump. Barack Obama can’t deliver for working people if he supports higher gas taxes when the price of fuel is at a record high, and is likely to get higher by summertime."

Meanwhile, Clinton has criticized him for voting for a bill in Congress that included tax breaks for oil companies. Obama said he fought against those tax breaks, but eventually supported the measure because it represented the biggest advances yet for renewable energy.

The Illinois senator said that the country needs to transition from corn-based ethanol in gasoline to ethanol produced from biomass that is not part of the food chain. Officials have been warning that the use of corn for fuel is worsening a growing food crisis around the globe that is causing a spike in prices for staple crops.

UPDATE: Clinton spokesman Phil Singer issued this response: "Sen. Obama might say he doesn't take contributions from oil companies, but he took more money last month from oil company executives than any other candidate. He might say he'll stand up to the oil companies but he’s the only candidate who voted for the Bush-Cheney energy bill that was written by energy lobbyists and has been called the best energy bill corporations could buy. With gas prices this high, talk is cheap. The American people need solutions."

UPDATE: Obama's plan, which in major respects is similar to Clinton's, calls for measures such as levying a windfall profits tax on oil companies and using the proceeds to help families pay energy costs, looking for any market manipulation, and halting purchases for the federal Strategic Petroleum Reserve.

22 comments so far...
  1. I am getting very tired of people jumping all over Obama at every turn and all of these political games. Grow up!

    Posted by Robin April 25, 08 01:54 PM
  1. The Strategic Petroleum Reserve does not buy oil. It comes from the federal royalty share from leases sold to oil companies in federal waters in the Gulf of Mexico. Instead of getting a royalty check, they take the oil in kind and put it in SPR.

    That surely is over the heads of Barack Obama and Hillary Clinton, but you don't need to perpetuate their misconception.

    Posted by Doug April 25, 08 02:09 PM
  1. Talk about taking money

    1. Clinton Foundation gets $131 million for Bill's public declaration for Kazakhstan's leader...undercuting both American foreign policy and sharp criticism of Kazakhstan’s poor human rights record by, among others, Mr. Clinton’s wife, Senator Hillary Rodham Clinton of New York.
    http://www.nytimes.com/2008/01/31/us/politics/31donor.html?ex=1359435600&en=33a4d96a239655bf&ei=5088&partner=rssnyt&emc=rss

    2. Bill and Hillary fraud trial with Ron Paul
    http://www.youtube.com/watch?v=xq8aopATYyw

    Posted by Young Atheart April 25, 08 02:15 PM
  1. Once again, Obama is full of rhetoric with no substance of how he intends to accomplish his ideas. The best he has been able to do is to take other people's ideas and reformulate them and rearticulate them in his own pie in the sky language. Renewable energy is YEARS away, the US Economy needs action TODAY. I'm voting for Hillary, unless the American public is duped into voting for Obama like they were George Bush, because then I will vote for McCain. Obama is a loser on all accounts.

    Posted by Bill April 25, 08 02:21 PM
  1. Barack Obama keeps on Policy rather than the continued negative campaigning of Hillary and now even the GOP. Voters must start seeing that Hillary is trying to fool us with Lies and Nasty Personal Smears. We have moved on from smears against Obama's Church and we have accepted what he has said. It would be so easy for Obama to make petty remarks but that is not what CHANGE we want.

    Hillary is playing the politics of the past, running up Debts over every State she visits and not having once concern.

    Indiana and North Carolina have seen the tactics of Hillary, she is trying to fool us, now we can send out a clear message that Hillary is little different than Bill was the lies he told us when in The White House, a vote for Hillary will be more of Bush the same will be with McCain, we want CHANGE!

    Posted by John B Sheffield April 25, 08 02:24 PM
  1. I think it's truly ironic that both SENATOR Obama, SENATOR McCain, and SENATOR Clinton raise issues in their presidential campaigns regarding the inefficiencies of Congress, when all of them are currently members of the one of the most inefficient Legislative bodies in US history. How can they possibly promise us sweeping changes within their Presidential tenure when they don't appear to be able to envoke change within the Senate now?

    I agree that change is needed to put more money in the pockets of the working class American, doing so a the pump is a great start, but taking campaign contributions from Oil companies certainly doesn't shore up any confidence in this voter!!

    Posted by Paul from Idaho April 25, 08 02:26 PM
  1. When are people going to realize that Obama's rhetoric never matches the
    reality of what he's already done and voted for. He's the only one that voted for the Bush/Cheney energy bill, but says he would be the best to fight the oil companies.
    This has happen numerous times on other issues.

    Also, what really iced the cake about Obama, was when I saw him on TV brushing off his shoulders, stating that's all you have to do is brush it off, about statements he didn't like or really never answers. This implies his arrogance!!

    Posted by Ron April 25, 08 02:27 PM
  1. Although I could use a break as much as the next guy, the federal gas tax holiday is just another way to put off the inevitable. No matter how many short term, quick fix bandaides are applied, the only answer is to reduce the consumption of this limited commodity.

    By the way, having spent over 35 years in oil and gas financial consulting, I also know that the best long-term strategy is not current 'energy independence' but rather it is to maximize the use of foreign oil and preserve our own reserves for the time when supplies are truly running out world-wide. This will be in the lifetime of my children.

    Lets make some real changes, vote for Barack Obama.

    Posted by George Bowman April 25, 08 03:13 PM
  1. Investing in renewable energy and clean technology is a great idea. The BEST way to do this is to do it as a public/private venture.

    However, such does not happen overnight. Even if we started today, we are MANY years away from relying on it for much of our energy needs.

    Further, NO WAY we are going to become "free" of oil anytime soon. NO country has managed to do that yet.

    Posted by None of the Above 08 April 25, 08 03:31 PM
  1. King John McCain will parade down the street giving gifts to the peasants so that they will worship him as the kind Monarch. If he is really serious, he would cut the gasoline tax in half for good. For the next few days we will see a pleasant Hillary Clinton making jokes about her husband liking barbecue... Certainly not the warrior Hillary who said she would obliterate Iran. The press must have thought she was just kidding,because they didn't really cover it. Maybe she was talking about barbecue on an international level. Even with such a big win in Pennsylvania... she got 10 million, Obama got 3 new superdelegates....you know the ones her and Bill have been pestering for some time to back her. If Barack blows her out with a 20 point win in North Carolina, CNN will report that it was the black vote that went for Obama. I looked in the mirror this morning after I voted for Obama and I saw a white face. The Clinton camp is working overtime to perpetuate the notion that Governor Rendell put forth... "there are some people in Pennsylvania that will not vote for a black man" this puts Obama in a though spot because he is part black and part white. Listen to Clinton's past speeches. She panders to voters of every state with what they want to hear. She is a vision of olden day monarchies who used to travel down the street and throw money to the poor people.

    Posted by Ron April 25, 08 03:42 PM
  1. Has anyone been following the news about the skyrocketing price of rice ? The fact that as of right now food prices are increasing at an alarming rate that we may have to start rationing. I guess Obama had it right all along. The Illinois senator said that the country needs to transition from corn-based ethanol in gasoline to ethanol produced from biomass that is not part of the food chain. Officials have been warning that the use of corn for fuel is worsening a growing food crisis around the globe that is causing a spike in prices for staple crops.

    Posted by Ron April 25, 08 03:46 PM
  1. I know for sure America is tired of the Republican Party after Bush no way will a Republican win. Sorry McCain.....I know economy was fine when Clinton was in office with his policies we did have a balanced budget.. hmmm........Perhaps Hillary is the hope we need to get us back there we don't need to reinvent the wheel..... Oh by the way do you really want to see a recession ...keep sending all the Mexicans back to Mexcio ............Don't you realize how much they contribute (d) to the economy....Come on Folks it's not rocket science...Lets get an infrastructure setup so that they can work and take care of their families, that is all they want for the most part, have we become that selfish that we don't want people here that work and create business. With our greed/selfishness lets just keep sending them back, we deserve to take a dive in our economy with those practices and beliefs ....... We need to stop the beauracracy and get serious how many more years are going to fight this issue, it has gone on too long WE NEED ACTION!!!!!......Last time I checked I have not seen too many Americans lining up to do landscaping, crop picking jobs and the like ....Hmmm,

    Posted by Terry Hinojosa April 25, 08 04:14 PM
  1. Obama spent 31 million is jet fuel so far.
    Maybe he should conserve like the rest of us.

    Posted by hhkeller April 25, 08 04:52 PM
  1. "When are people going to realize that Obama's rhetoric never matches the
    reality of what he's already done and voted for."

    Have you ever seen an Obama rally? When he speaks of unity and you look at the crowd - you have old, young, black, white, democrat, republican, and independents --- He's doing exactly what he says he will do.

    The others just play lip service to the idea. McCain's audiences are small and predominantly white. Hillary's are mostly women. Obama's constituency represents America.

    Posted by wolf April 25, 08 05:58 PM
  1. Funny. I thought the the Democratic party ran on this when they won both the House and Senate. Seems like gas prices have climbed steadily since that happened. Why haven't they fixed the problem???? As long as they all keep taking contributions(bribes), nothing will ever change!!!

    Posted by Ron McDaniel April 25, 08 07:07 PM
  1. It's time that we have some one in the White House who is intelligent. And besides I like the sound of his voice...some how he sounds like an honest person. Michelle will be an asset also...

    Posted by Ed Armstrong April 25, 08 07:20 PM
  1. So lets just get it over with,...this is tiring at best. One is too old and stupid, one is a liar and she can't be trusted. One has no experience but a seemingly good heart. Ron Paul was ignored by the media and never got his fair shake from them. I would have voted for him as a defender of our constitution.
    I guess it's the good heart rather than the liar or the stupid oldfart

    Posted by Olddog April 25, 08 08:46 PM
  1. Doesn't anyone notice that everybody (including all the presidential candidates) screaming about gas prices refuses to let us drill for oil? Pelosi only today went after Bush to get OPEC to increase production to help lower the price of oil, while she and all the liberals in Congress and some RINOs voted down drilling in ANWAR and the Gulf of Mexico. Meanwhile, Cuba and China are drilling there, as is Mexico. We're the only idiots on the planet sitting on vast stocks of oil while both refusing to drill for it AND crying about the price of foreign oil.

    Oh, but let's blame the oil companies as usual, right? Give me a break.

    Posted by Donald Ramakers April 26, 08 03:44 AM
  1. I am strongly against the Gas Tax Holiday. I believe that it sends the wrong message to America.

    The purpose of government is not to ensure cheap oil, especially when the market is trying to send the opposite signal. I'm surprised that any senator who wants a cap on carbon emissions would work to actively decrease the cost of gasoline. It seems like an economic stimulus targeted at the people who make the most green house gases.

    Much better would be to increase the tax on green house emissions and refund the proceeds to everyone. (Kind of like a stimulus payment every month.)

    Posted by William Fraser April 26, 08 10:37 AM
  1. It's unbelievable that I hardly ever see anyone mention inflation as the culprit. Massive deficit spending and Wall Street bailouts are devaluing the dollar. This is why gas is so expensive. Either none of the presidential candidates know this, or they don't want you to know it. After all, without an endless supply of money, they wouldn't be able to make all their election year promises. http://i9.tinypic.com/80zdc1h.gif

    Posted by Tracker April 27, 08 12:47 AM
  1. You should google "McCain Clinton Secret Deal" and "McCain Clinton Vodka Drinking" very interesting about these two.

    Posted by Elma April 28, 08 12:40 PM
  1. No matter how any one looks at it all politicians lie to every one. They all say what we the people want to hear to get into office. But when it comes down to getting it done they have all failed us one way or another. And I do believe they all take kick backs from the oil companies how else would they get away with raping the consumer the way thy do.
    They give the oil companies huge tax breaks and all kind of incentives and we end up paying for it in the long run.
    I though the reason for drilling oil in Alaska where it was prohibited and they let them drill was to ease the price at the pumps? Well it looks like to me that they lined there pockets of congress and senators and all we have seen was higher prices.
    My suggestion is fire every one (congressmen/ woman and Senators) start over fresh with people who will really work for the people instead of worrying about there next raise and how to line there pockets.
    I have a feeling no matter who wins this next election we will still lose no matter what. Does Congress really care about the poor people of this Country? People are having to sell every thing they have just to buy a little gas to try to get to work only to use there pay check to buy not enough gas to go to work until the next paycheck.
    This Country is headed for a depression quickly; just look at all the foreclosures around the Country. It is at an all time record high. So when is enough going to be enough?

    Here is a prime example of the rich trying to get over on the poor this story was on KOMO 4 web page

    Story Published: May 30, 2008 at 4:09 PM PDT
    Story Updated: May 31, 2008 at 10:21 AM PDT
    By KOMO Staff & News Services
    Watch the story
    SEATTLE (AP) - State lawyers say Puget Sound Energy's request for higher electric and natural gas rates is overpriced by about $226 million.

    PSE wants Washington's Utilities and Transportation Commission to approve rate hikes worth about $237 million. But Public Counsel Simon Fitch says the request is much larger than needed to cover PSE's costs and is unjustified.

    Among the unwarranted costs in the company's proposed rate hike are double-digit shareholder profits, the cost of PSE’s Safeco Field corporate suite, privately owned aircraft and $4.8 million in executive salary hikes, the state Public Counsel's office said.

    "PSE’s request is much larger than the evidence supports is necessary to cover costs,” Fitch said. “PSE’s customers have been hit hard recently with frequent rate hikes – it’s important that this increase be no more than absolutely necessary.”

    In expert testimony filed Friday with the commission, Public Counsel's experts concluded that a reasonable revenue increase for PSE should be limited to $4.3 million from electric rates and $7 million from increased gas rates - about $226 million less than sought by PSE.

    Fitch suggests cost cuts, including smaller executive salaries and slimmer shareholder profits.

    He also recommends rejecting a company-requested rate hike to pay the $500,000 cost of PSE’s privately owned aircraft and to pay for any of the costs for executive parking at SeaTac Airport or for PSE’s Safeco Field corporate suite.

    The commission plans a hearing on the rate request in August, with a decision in November.

    The Bellevue-based utility is separately asking the state to approve its sale to Australian and Canadian private equity investors. PSE has about 1 million electric customers, and about 725,000 natural gas customers, mostly in Western Washington.

    Here is the web link so any one can check it out. http://www.komonews.com/news/19412564.html

    I know see why that sane is so true; Politicians/Presidents sound do 2 terms, one in office and one in prison because it seems like we the people always end up paying for there mistakes.

    Posted by John June 7, 08 03:59 AM
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About political intelligence Field reports from Boston Globe reporters and editors covering the 2008 presidential campaign and the national maneuvering of Bay State politicians.

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