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Obama on thes gas tax , good economics, bad politics
Gas prices are a function of supply/demand, not cost.
The industry will reduce prices only when sales decline , not before. So an eighteen cent reduction in taxes will quickly be followed by an increase in the non-tax part of the price. Doesn't matter what big oil does, the independent on the next corner will raise his price a penny. Then the franchisees will follow.
Then another penny, or seventeen.
Meanwhile in effect we will have added to the deficit. Any federal "trust fund" is an intellectual concept with no real content. What matters is the Treasury's total cash inflow compared to total outgo. Assigning names to certain parts of either is meaningless. They could call 10% of it the National Fabius Fund and the deficit would be unchanged.
But Obama's opposition is bad politics. He'd have lost nothing by saying "me too" except some tepid MSM "atta-boys" which will be completely ignored by Tuesday's voters. "No one ever lost an election by under estmating
the intelligence of the american public". P.T. Barnum? (.I'll google it and let you know.) Whoever. It seems correct to me.
If Obama wants to win he has to do what winners do.
That's not telling the voters things they don't want to hear.













Comments (23)
No one in this world, so far as I know — and I have researched the records for years, and employed agents to help me — has ever lost money by underestimating the intelligence of the great masses of the plain people. Nor has anyone ever lost public office thereby.
H.L. Mencken
May 3, 2008 6:54 AM | Reply | Permalink
I strongly disagree. If Obama is going to pander and lie to voters, there is no point in and no reason for his candidacy. The old school politicians can do all the pandering on their own, no one needs Obama for that.
If American voters prefer useless short term non-solutions, they need President Clinton or President McCain. They need someone who will dig a deeper hole instead of starting to solve long-term problems. Because some people need to make all the mistakes before they can (maybe) learn from them.
May 3, 2008 7:20 AM | Reply | Permalink
Which means that Obama was perfectly fine playing old politics back in Il, when he actually pushed a gas tax holiday. The new politics kick in only when you are running for President, naturally.
May 3, 2008 7:23 AM | Reply | Permalink
If Obama thinks the gas tax holiday worked so well in IL, why doesn't push for it now?
Or maybe he doesn't think so and you're just setting up a strawman argument. You know, some people can learn from mistakes. Hillary isn't one of them.
May 3, 2008 7:30 AM | Reply | Permalink
"Senators Kimberly A. Lightford (D-4th) and Barack Obama (D-13th) said the bill gives customers needed temporary relief from high gas prices. "Gas retailers must post on each pump a statement that indicates that the state tax has been suspended and that this temporary elimination of the tax should be reflected in the price per gallon of gas," said Obama."
He voted three times for such bills in IL.
(Source: Lexis.com: Chicago Defender July 1, 2000)
He's a lying hypocrite, that's all.
May 3, 2008 7:34 AM | Reply | Permalink
You've got the strawmen and non-sequiturs down pat, but can you actually read? I'll repeat the question: If Obama thinks the gas tax holiday worked so well in IL, why doesn't push for it now?
May 3, 2008 7:58 AM | Reply | Permalink
Obama voted for tax suspension three times in the State Senate.
"During one debate, he joked that he wanted signs on gas pumps in his district to say, “Senator Obama reduced your gasoline prices.” CBS News
He really liked the idea back then. He doesn't like it now because it will make him appear a "me too" compared to Clinton. And he knows the bitter voters in Indiana would prefer an original to a "me too".
So I'm sure he now wishes he voted "present" in IL.
May 3, 2008 8:08 AM | Reply | Permalink
Clinton clearly doesn't mind being a "me too" compared to McCain.
May 3, 2008 9:01 AM | Reply | Permalink
that all you have?
May 3, 2008 9:04 AM | Reply | Permalink
That all you have? Disappointing.
May 3, 2008 9:47 AM | Reply | Permalink
That's weird, because his willingness to tell voters what they don't want to hear, but know they NEED to hear, is one of the top reasons I'm a solid supporter of Barack Obama.
If everyone wants politics as usual, they don't need an Obama. The reason he's raised more money than EVER and gotten so many new voters involved is because we're TIRED of politics as usual.
PS to Lalo--nothing is that simple. We would have to look at where the gas tax of Illinois goes, since it would clearly be a state tax and not a Federal tax and thus wouldn't be needed for the same things for which a Federal gas tax is needed. Do that research and get back to us.
May 3, 2008 8:34 AM | Reply | Permalink
Do that research and get back to you?
No that's OK, I'll leave you listening to your prophet, because as you rightly pointed out he tells you what you need to hear.
No amount of research will convince you, because you can't think for yourself and you would rather explain away the facts that don't fit in your yearning for a brave new world.
But yes, nothing is that simple. Except for kindergarten-grade political posturing that Obama has been showing for the last few weeks.
May 3, 2008 8:51 AM | Reply | Permalink
LOL
And that's what you've provided -- NO amount of research. Just empty claims without links.
I can think for myself. I can also cite sources.
May 3, 2008 5:33 PM | Reply | Permalink
Not a good idea at all. Obama has been doing well with pushing the truth, for the most part. He does not have to sink that low to win.
Let's face it, he will win the nomination so why stoop to being a liar? In any event, the people deserve better... they deserve the truth, win or lose.
If the people want to be duped and prefer to have untruths, they will vote for one of the other candidates, just like they voted for GWB in his second term... but there is a rotten price to pay. As we are seeing now!
May 3, 2008 8:51 AM | Reply | Permalink
I'm not arguing that "anything goes".
I think he's done a better job the Hillary of avoiding personal attacks. Not that I think she has gone too far, I don't. But that's something that certainly would cause me to vote against a candidate - as Bush should have happened with W after 2000 in South Carolina.
But pandering works. And I wish he'd do more of it for the length of this election. Like St. Augustine's Oh lord make me pure but not yet.
I haven't a clue about the difference between his position now and his votes in Illinois. Chances are he'll be asked about it on Meet the
Press. Hope he has a convincing answer.
It occurs to me that maybe he benefitted from making an unpopular comment on the gas holiday.
It got Wright out of the headlines to a greater extent than if Obama had just said "me too" to the HRC and McCain gambit.
Maybe that was even the intent. "doesn't matter what you say about me, just spell my name right."
May 3, 2008 9:12 AM | Reply | Permalink
Sorry for the many errors. I can't draft off line and spell check for technical reasons and I'm too old and tired and stupid to get it right on-line
May 3, 2008 9:17 AM | Reply | Permalink
That's exactly the point.
He's against the tax suspension now because he needs something to oppose Clinton on and make Wright go away.
To support her proposal gives him nothing noteworthy to talk about.
But I doubt this will come up on Meet the Press.
He only ever goes to Tim Russert for a massage, not to show his testicular fortitude.
May 3, 2008 9:20 AM | Reply | Permalink
I take it that it hasn't occurred to you that maybe he opposes it because it's a bad idea?
May 3, 2008 9:27 AM | Reply | Permalink
Maybe. I guess his judgement on good/bad ideas changes depending on which office he occupies or runs for.
Nobody has supported and opposed the gas tax holiday more than Barack Kerry-Obama.
May 3, 2008 9:32 AM | Reply | Permalink
It should also be noted that Clinton was against the gas tax in New York when she was running for her Senate seat.
So I would assume you would equally criticize her for "supporting and opposing" the gas tax holiday.
May 3, 2008 10:07 AM | Reply | Permalink
And...crickets.
May 3, 2008 1:40 PM | Reply | Permalink
A tax break on gasoline isn't meant to contain oil prices. It merely provides a discount on gasoline purchased by the consumer. Whether you pay 4.50 a gallon or 6.00 a gallon, the tax break remains at .184 cents per gallon, so the savings to the consumer will be steady.
For those who claim that road maintenance and construction will come to a screeching halt, that is simply not true. The monies provided for this year's road work was already budgeted and allotted (and in some cases for projects that will be years in construction) in the federal budget passed for this year, last year. If as Clinton claims, the money for road infrastructure for next year's budget can be made up by a windfall profits tax on the oil companies' profits for this year, while possible, I don't think is probable, without a clear democratic majority in the senate and a republican oil man in the White House.
What's really happening is that the American consumers are gradually losing the volume discount that we always had because we bought more gasoline than the rest of the world. It's the same principle that prices a gallon of milk cheaper than a quart of milk - you pay less per quart because you're buying more. Oil companies don't have to extend a volume discount to consumers (Americans) because other consumers (e.g. China, India) are making up the difference
in sales. (This is not the sole reason, but a major one as to why Americans are paying more for gas.)
Then of course, we have the accounting practice of oil companies - LIFO vs. FIFO. This practice should be discontinued in my opinion, because it gives a misleading profits picture for tax purposes and allows for consumer gouging. While it may provide a higher valuation of inventories for tax purposes, it also hides the true cost of inventories for sales purposes. The gasoline you're purchasing at the pumps today was probably purchased by the oil companies at the wellhead at a contract price far lower than what they would have to pay at today's prices. Since many of the oil companies own the wellheads, own the refineries, own the distribution system and own the retail outlets for the gas, they're making more money every step of the way.
May 3, 2008 12:24 PM | Reply | Permalink
May 3, 2008 10:21 PM | Reply | Permalink
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