INDIANAPOLIS, Indiana (AP) -- Broadening his attack, Sen. Barack Obama said Saturday that Sen. Hillary Clinton's support for a summertime break from the federal gasoline tax symbolizes a candidacy consisting of "phony ideas, calculated to win elections instead of actually solving problems."

 

Not so, the former first lady told a campaign audience as the next round of primaries approached. Obama is "attacking my plan to try to get you some kind of break this summer," she said.

 

Phil Singer, a spokesman for Clinton, responded, "Considering that Sen. Obama voted to suspend the gas tax three times when gas cost less than $2 a gallon and has an energy lobbyist chairing his Indiana campaign, it's hard to take his latest criticisms very seriously."

 

Clinton and Republican Sen. John McCain have both proposed suspending the levy from Memorial Day to Labor Day as a way of providing relief from record gasoline prices for consumers.

 

Obama opposes the plan, saying it would save a mere 30 cents a day and cost thousands of construction jobs. Money from the tax goes into a federal fund that pays for highway projects such as bridge and road construction.

 

http://www.cnn.com/2008/POLITICS/05/03/obama.gas.ap/index.html

I agree with Obama here.

Obama's right. Suspending the gas tax is a colossally dumb idea.

While I do not disagree with Obama, what was his reasoning for pushing to suspend the gas tax previously? I do not mean that as an insult or smark remark towards Obama, I really do not understand.

While I do not disagree with Obama, what was his reasoning for pushing to suspend the gas tax previously? I do not mean that as an insult or smark remark towards Obama, I really do not understand.

 

I'm fairly certain the Illinois episode turned out to be a failure. The state lost a lot of money and gas prices went unchanged, more or less. I can't speak for Obama, but that might be his reason.

The gas tax holiday is a weird topic. I have read some articles on it, and what I have gathered is that if we remove the gas-tax, OPEC will raise their prices, consumers will pay the same, and the tax revenue will simply go to the Middle East rather than our government.

 

If this is true (is it really backed up by any economical theory (although I do know that some economists have said it)), then I would have little problem using military force if that group of countries is going to toy with us like that. Can someone explain to me though why OPEC would raise their prices in this situation?

The gas tax holiday is a weird topic. I have read some articles on it, and what I have gathered is that if we remove the gas-tax, OPEC will raise their prices, consumers will pay the same, and the tax revenue will simply go to the Middle East rather than our government.

 

If this is true (is it really backed up by any economical theory (although I do know that some economists have said it)), then I would have little problem using military force if that group of countries is going to toy with us like that. Can someone explain to me though why OPEC would raise their prices in this situation?

 

OPEC raise there prices... are you meaning cut production to raise the cost of oil? Why would they raise there prices when there making oil at $2.50 cost selling it for $119?

Not sure. From what I have read, it said that if we have a gas-tax holiday, OPEC will simply raise their prices. I am asking for an economic reason because I can't think of one.

Not sure. From what I have read, it said that if we have a gas-tax holiday, OPEC will simply raise their prices. I am asking for an economic reason because I can't think of one.

OPEC's actions don't really matter because Hillary's proposal will raise gas prices on its own. The suspension of the federal excise tax is only half of her plan. The other half is to impose a windfall profits tax on oil companies, which will be passed back to consumers. It's just the old Democratic shell game with taxes.

Reported on Drudge:

 

ClintonMcCain Gasoline-Tax Plans Denounced by More Than 200 Economists

The talking heads were really ripping Clinton and McCain for pandering to the masses. One of them pointed out that slick willie raised the gas tax 5 cents/gal 15 years ago and now his wife wants to give back 18 cents/gal for 3 months and pay for it with a windfall profits tax on 8% margins. The question came up why federal taxes greater than 8% aren't considered windfall profits for the government.

The question came up why federal taxes greater than 8% aren't considered windfall profits for the government.

 

I must say, that's a good one.

I saw a Hillary Clinton advertisement on TV this morning where she pledged to lower the price of gas. And to think she's been critical of Obama for making empty promises. That one takes the cake. Of course, hollow promise or not, it will surely resonate with some Indiana voters.

I saw a Hillary Clinton advertisement on TV this morning where she pledged to lower the price of gas. And to think she's been critical of Obama for making empty promises. That one takes the cake. Of course, hollow promise or not, it will surely resonate with some Indiana voters.

What will resonate with Indiana voters is that Obama's spiritual mentor is a racist, his position on the issues are not much different than Hillary's, so why take a chance on a potential Trojan Horse who looks down his nose at rural and small town voters?

I don't see how this helps any in the long run. Aren't prices pretty much set by supply and demand. Us cutting back on our usage would help more than this, because if you drop prices for a short time usage will increase or go up.