Unlike McCain and Clinton, Obama opposes gas tax suspension
Having reported on Senator McCain’s proposal to suspend the federal gas tax during the summer months, we wanted to report on Senator Clinton’s support of this policy and Senator Obama’s opposition. We noted that one benefit of high gas prices is the continuing incentive for entrepreneurs, big businesses, and governments to develop alternative technologies and mass transit solutions. Governmental policies intended to lower gas prices, could decrease some of the incentive to innovate and evolve. (Although we tend to assume this is a moot concern since gas companies will likely make up for any price drop with a commensurate increase in prices.)
This week on the campaign trail, Obama asserted that “I think John McCain’s proposal for a three-month tax holiday is a bad idea.” He continued, by stating “We’re talking about 5 percent of your total cost of gas that you suspend for three months, which might save you a few hundred bucks that then will spike right up. Now keep in mind that it will save you that if Exxon Mobil doesn’t decide, ‘We’ll just tack on another 5 percent on the current cost.’”
Hat tip: MetroRiderLA
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