McCain, Clinton Both Back the Insanely Stupid Gas Tax Holiday Idea

How do you encourage people to stop using something – give them easier access to more of it? Idiotic as it is, that seems to be the answer as far as presidential hopefuls John McCain and Hillary Clinton are concerned. Their proposed ‘gas tax holiday’ has been slammed by economists, and anyone with half a brain should be able to see that it won’t work.

The proposal involves cutting the 18.4 cents per gallon federal gas tax from Memorial Day to Labor Day, giving Americans a ‘summer break’ from paying the tax, which is put to use building roads and bridges nationwide. Obama is the only one in this three-ring circus that thinks it’s a bad idea, and Clinton in turn has accused him of ‘being out of touch with ordinary Americans’. Yeah, because in this country of brilliant thinkers, the thought process stops after they hear the words ‘tax cut’.

From MSNBC.com:

Economists said that since refineries cannot increase their supply of gasoline in the space of a few summer months, lower prices will just boost demand and the benefits will flow to oil companies, not consumers.

“You are just going to push up the price of gas by almost the size of the tax cut,” said Eric Toder, a senior fellow at the Urban-Brookings Tax Policy Center in Washington.

Obama criticized the plan as pure politics and said the only way to lower the price of gas is to use less oil.

“This isn’t an idea designed to get you through the summer, it’s an idea designed to get them through an election.”

Clinton promised to make up for the tax break by imposing a windfall profits tax on oil companies, but hasn’t seemed to consider the fact that she’s essentially offering bags of heroin to a group of junkies who just started considering rehab.

Continuing the cheap gas trend in America won’t do anything to reduce our dependence on oil. It won’t encourage people to cut back. It won’t bolster further investment into alternative energy sources. It’s a dirty bandage on a weeping gangrenous wound.

People might not even get any relief from the tax cut, according to some economists who predict that refineries will likely keep some of it for themselves rather than passing it on to consumers.

At least we can console ourselves with the fact that one of the three main presidential contenders sees the truth to this. It’s not much, but it’s something.

Link [MSNBC]

Photo credit: Flickr user ~~zorro~~