After oil prices hit yet another record near $120 a barrel on Monday, the presidential candidates have been bandying about a proposal made by Sen. John McCain to temporarily suspend the federal gasoline tax.
Here’s what McCain proposed during a speech on April 15, better known as Tax Day: “I propose that the federal government suspend all taxes on gasoline now paid by the American people — from Memorial Day to Labor Day of this year. The effect will be an immediate economic stimulus — taking a few dollars off the price of a tank of gas every time a family, a farmer, or trucker stops to fill up. Over the same period, our government should suspend the purchase of oil for the Strategic Petroleum Reserve, which has also contributed to the rising price of oil. This measure, combined with the summer-long “gas-tax holiday,” will bring a timely reduction in the price of gasoline. And because the cost of gas affects the price of food, packaging, and just about everything else, these immediate steps will help to spread relief across the American economy.”
McCain, the likely GOP presidential nominee, wants to suspend the 18.4-cents-per-gallon federal gas tax and 24.4-cents-per-gallon for diesel from Memorial Day to Labor Day.
Democrat Sen. Hillary Clinton also supports the idea. Here’s a gas prices ad targeted toward North Carolina voters ahead of their May 6 primary:
Clinton said she would recoup the lost tax dollars by imposing a “windfall profits tax” on oil companies. Here’s her full plan to address rising fuel prices.
On Monday, Clinton attacked Democratic front-runner, Sen. Barack Obama, for not supporting the idea.
“My opponent, Senator Obama, opposes giving consumers a break from the gas tax,” Clinton said at a North Carolina firehouse, according to the Associated Press. “I understand the American people need some relief,” she added, implying that Obama doesn’t get it.
Obama, who backed a similar measure as an Illinois state senator, argues that his rivals’ idea is “designed to get them through an election” and would not help struggling consumers in the long-run.
He ignored Clinton’s attack and focused on McCain’s proposal, saying that eliminating gas tax collection impact highway construction and cost the Tarheel State up to 7,000 jobs.
“This is his solution to the problems of the energy crisis and your gas bills,” Obama told several thousand at a noisy rally in Wilmington, N.C. “Keep in mind that the federal gas tax is about 5 percent of your gas bill. If it lasts for three months, you’re going to save about $25 or $30, or a half a tank of gas.”
Here are Obama’s Monday remarks on the gas tax holiday:
It's time for everyone to face the truth. Barack Obama has no real chance of winning the national election in November at this time. His crushing defeat in Pennsylvania makes that fact crystal clear. His best, and only real chance of winning in November is on a ticket with Hillary Clinton as her VP.
Hillary Clinton seemed almost somber at her Pennsylvania victory speech. As if part of her was hoping Obama could have proved he had some chance of winning against the republican attack machine, and their unlimited money, and resources.
But it is absolutely essential that the democrats take back the Whitehouse in November. America, and the American people are in a very desperate condition now. And the whole World has been doing all that they can to help keep us propped up.
Hillary Clinton say's that the heat, and decisions in the Whitehouse are much tougher than the ones on the campaign trail. But I think Mr. Obama faces a test of whether he has what it takes to be a commander and chief by facing the difficult facts, and the truth before him. And by doing what is best for the American people by dropping out of the race, and offering his whole hearted assistance to Hillary Clinton to help her take back the Whitehouse for the American people, and the World.
Mr. Obama is a great speaker. And I am confident he can explain to the American people the need, and wisdom of such a personal sacrifice for them. It should be clear to everyone by now that Hillary Clinton is fighting her heart out for the American people. She has known for a long time that Mr. Obama can not win this November. You have to remember that the Clinton's have won the Whitehouse twice before. They know what it takes.
If Mr. Obama fails his test of commander and chief we can only hope that Hillary Clinton can continue her heroic fight for the American people. And that she prevails. She will need all the continual support and help we can give her. She may fight like a superhuman. But she is only human.
Sen. Hillary Clinton: "You know, more people have now voted for me than have voted for my opponent. In fact, I now have more votes than anybody has ever had in a primary contest for a nomination. And it's also clear that we've got nine more important contests to go."
I just watched a prsentation that indicated there is nothing we can do to increase our gasoline supply. How redicules!!! If we lowered ( and enforced) a 10 mile per hour speed limit, we would have 3 days extra gasoline within 30 days. WHY do we not use our heads?
The gas tax holiday is a joke of an idea and Senator Obama is right on with not supporting it. It is a band-aid on a far bigger wound. We all need to learn how to live with less. We have turned into greedy consumers as part of a throw away society. Maybe the tax would help for 3 months but then what. Senator Obama is the only one who speaks of conservation and he is right. We need him in the White House because he does tell the truth.
Repealing the gas tax only provides a short-term 5% price break, rewarding the irresponsible consumption in the first place. Additionally, it doesn't do anything about the real problem.
This is similar to the bailout of short-sighted homeowners that defaulted on loans, and the greedy lenders that helped them.
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It's time for everyone to face the truth. Barack Obama has no real chance of winning the national election in November at this time. His crushing defeat in Pennsylvania makes that fact crystal clear. His best, and only real chance of winning in November is on a ticket with Hillary Clinton as her VP.
Hillary Clinton seemed almost somber at her Pennsylvania victory speech. As if part of her was hoping Obama could have proved he had some chance of winning against the republican attack machine, and their unlimited money, and resources.
But it is absolutely essential that the democrats take back the Whitehouse in November. America, and the American people are in a very desperate condition now. And the whole World has been doing all that they can to help keep us propped up.
Hillary Clinton say's that the heat, and decisions in the Whitehouse are much tougher than the ones on the campaign trail. But I think Mr. Obama faces a test of whether he has what it takes to be a commander and chief by facing the difficult facts, and the truth before him. And by doing what is best for the American people by dropping out of the race, and offering his whole hearted assistance to Hillary Clinton to help her take back the Whitehouse for the American people, and the World.
Mr. Obama is a great speaker. And I am confident he can explain to the American people the need, and wisdom of such a personal sacrifice for them. It should be clear to everyone by now that Hillary Clinton is fighting her heart out for the American people. She has known for a long time that Mr. Obama can not win this November. You have to remember that the Clinton's have won the Whitehouse twice before. They know what it takes.
If Mr. Obama fails his test of commander and chief we can only hope that Hillary Clinton can continue her heroic fight for the American people. And that she prevails. She will need all the continual support and help we can give her. She may fight like a superhuman. But she is only human.
Sen. Hillary Clinton: "You know, more people have now voted for me than have voted for my opponent. In fact, I now have more votes than anybody has ever had in a primary contest for a nomination. And it's also clear that we've got nine more important contests to go."
Sincerely
Jacksmith... Working Class :-)
I just watched a prsentation that indicated there is nothing we can do to increase our gasoline supply. How redicules!!! If we lowered ( and enforced) a 10 mile per hour speed limit, we would have 3 days extra gasoline within 30 days. WHY do we not use our heads?
The gas tax holiday is a joke of an idea and Senator Obama is right on with not supporting it. It is a band-aid on a far bigger wound. We all need to learn how to live with less. We have turned into greedy consumers as part of a throw away society. Maybe the tax would help for 3 months but then what. Senator Obama is the only one who speaks of conservation and he is right. We need him in the White House because he does tell the truth.
It's basic math.
Repealing the gas tax only provides a short-term 5% price break, rewarding the irresponsible consumption in the first place. Additionally, it doesn't do anything about the real problem.
This is similar to the bailout of short-sighted homeowners that defaulted on loans, and the greedy lenders that helped them.
Frankly, this is a terrible idea.