Some facts are missing here.

Clinton has said that the gas tax will be paid for by taxing the obscene profits of oil companies. Its an important fact. I have no problem with this. Though she should tax the traders (wall st.) who account for a heavy chunk (as much as 50% by some sources) of the price of oil as well.

Also important. A lot of businesses rely on the summer season for a good portion of their revenues. These businesses will be hurt by high gas prices and a small reduction in gas could create revenues or limit contraction for these businesses.

People keep talking about the obscene profits of oil companies, but not of the obscene amount of money taken by government in taxes (a large chunk of which is given away as pork).

If McCain was a real conservative. he'd know this. He'd also know that increasing supply will eventually bring down prices and he'd propose allow drilling in ANWAR & the Gulf.

Reducing spending and increasing supply are the long term answers...but i guess they lack "cheap gimmick" appeal.

Any taxes they pay in (which is less than the amount paid by non-oil companies) is easily made back by government subsidies.

Source

The cost of gasoline will spike due to the increased demand that summer brings. So economics kicks in. Also, the oil companies have admitted that they don't release nearly as much product as they produce(reduced supply + increased demand = high ass prices). Duh, if they put out their entire production, that would deflate prices severely. We can't have that! The boys on Lasalle street in Chicago and their counterparts on Wall street have a lot to do with the extra 70 dollars per barrel cost on oil these days. Oil should be around 60 bucks a barrel, last I heard. But that's another issue entirely.

If Clinton wants to say...abolish the gas tax and stick the tax back to the oil companies for every gallon of gas they put out and also on every gallon that is produced, then so be. But hold on, then the oil companies would then increase the prices by double the imposed tax amounts for just shits and giggles. So they would just shove the nozzle right back up the government's and consumer's ass again.

Anyway that gas tax holiday is dumb. It works for most dumb assess because they can't get past the idea of saving 18 cent, which they would not save anyway due to increased demand and withheld supply. Get it?!

Right. Not mentioned. Because oil companies would pass it on to consumers immediately.

Wonder how much of that $134 million Clinton estate is invested in oil?

FAIL

fullsize

I hope somebody hits that guy in the head with a basic economics textbook.

FTR's question: "God, why can't I shit in the mouths of guys like this?"

Answer: Because you would just be giving them even more shit to spray out all over the rest of us.

I agree with Obama. No gas tax holiday. In fact, a gas tax increase would be better for the economy.

Not mentioned because its a very tilted pro obama article. Good to have all the facts before making a conclusion.

I should point out that both obama and clinton want to tax oil companies record profits. So if obama fans are worried about oil companies passing it on to consumers they should be outraged by his tax plan as well.

The solution here is a harsh one. New tech (electrics cards, wind mills, solar, etc), less consumption (goodbye SUV and V6/V8s), better urban planning (so long suburb/exburb), more public transportation, more walking, more bicycles.

Another important part of the problem (and congress looked into it) is the role of market speculators traders. They are a big part of the oil pricing problem.

Correct me if I'm wrong, but I thought UpTight was referring to the tax paid by the consumer when they buy the petrol, rather than any corporation or business tax paid by the oil companies. Over here, about 60% of the price of petrol at the pump is fuel tax and VAT.

This whole tax holiday idea does seem ridiculous and desperate.

Another important point: The majority of gas taxes go directly into the Highway Trust Fund, which is projected to run a deficit deficit for the first time in 2009, while a small amount is also dedicated to mass transit programs. Taxes on oil company profits, however, just go directly to the government's general fund and can be used for anything, which means that they will be used for anything other than road construction and repair.

So, if we want more of this . . .



. . . we should decrease gas taxes. However, if you want to know that driving over a highway bridge is not akin to playing a game of russian roulette, reducing gas tax revenues is not a good idea.

Could be. I thought he was making an excuse for high gas prices.

I think he just wanted to say something really quickly without specifically referring to any particular tax breakdown.

That way he can make half-ass argumentation that he was right all along no matter how somebody decides to disagree with his clear assertion.

Regardless of how you feel about Clinton, McCain, or Obama, if you can't come up with at least one good reason why this is total bullshit (helpful note: both FTR and UpTight feel this is bad policy, remember) then you aren't thinking very hard.