The Gas tax: Hillary vs Obama
There has been a lot talk about the recent gas tax holiday that Hillary (and McCain) have proposed. And Obama has called pandering. The media, helped by the Obama campaign, has gone along with this characterization of Hillary’s proposal (though oddly that same frame has not been applied to McCain and he is somehow not pandering). And of course there is a huge difference between what Hillary proposed and what McCain proposed that for the most part has been given short shrift. She would pay for hers by collecting the tax from oil companies instead and McCain will yet again put it on the national credit card. So Hillary’s proposal causes no loss in highway funds and no loss of revenue or jobs as Obama has tried to suggest.
The other aspect of this is the suggestion that nearly all economists agree that this is silly and will do no good. Hmm I find that an odd argument. An 18 cent reduction in gas prices is not important (and please don’t bring up the idea that there will be nothing to prevent the gas station owners for taking the windfall for themselves because then you concede there is a windfall to be had)? How about an 18 cent rise in prices? No effect? If that were true then when does a rise in gas prices begin to be important? Is 20 cents enough to have an effect? Is it 25 cents? 35 cents? You see how silly the argument is. And yet Dean Baker, assistant director at the Center for Economic and Policy Research calculates for each penny increase in the cost of gas, U.S. consumers pay an extra billion dollars a year? Sounds like a 4+ billion dollar savings to me (18/ 3 months of summer).
What this is indicative of, however, is the real difference between Obama and Hillary. When regular Americans are feeling the pinch of an economic downturn you can expect a concrete proposal that will take effect immediately from Hillary and you can expect Obama to talk about your pain and do nothing.




