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Nazareth, Pa., United States

Saturday, May 03, 2008

Obama's Opposition to Gas Tax Cut May Hurt

According to IndianaGasPrices, the average price per gallon is $3.68, slightly higher than here in Pa. Yet Barack Obama dismisses the gas tax cuts proposed by Hillary Clinton and John McCain as a "short term" solution that might save residents $30 at the pump. He's probably right.

He's also contributing to a perception that he's out of touch with ordinary voters. That's illustrated by a Bloomberg story about Obama's visit with a group of senior citizens in Columbia City, Indiana. He finished his "short-term solution to a long-term problem" argument and a hand went up.

"A lot of us are nothing but short-termers."

24 comments:

Anonymous said...

Income tax was a short term solution to paying for the Civil War. Maybe it'll become permanent. ha ha ha

O_o

Anonymous said...

It is very short sighted of Obama to only see the savings to the average American on his gasoline bill. THe real impact will be seen in the savings to truckers whose fuel costs impact what we pay for our hard goods and groceries. THe ripple effect of that "minor" tax holiday will help reduce inflation in an economic downturn in the economy and that is a good thing. Remember this too... Obama doesn't realize that raising the Capital Gains tax will harm everyone with a pension plan. He thinks it will just tax the rich. He is myopic on the economy, and his inexperience is showing.

Blah Society said...

What would the price of gas be if the tax were suspended for the summer, and when would it take effect?

Anonymous said...

Obama doesn't realize that raising the Capital Gains tax will harm everyone with a pension plan.

How exactly?

Bernie O'Hare said...

AJ, When this takes effect depends on when it passes, but it is intended as a summer holiday that will save normal drivers around $30. I did not consider the savings to OTR truckers, as one anon astutely observes.

Anonymous said...

It's difficult not to feel played.

We invade Iraq and occupy the country with what is believed to be the second largest oil reserves in the world. Iraq is expected to export $70 billion in oil this year. The oil companies are inexplicably drawing record profits. Our gasoline prices double since 2004.

Don't you feel played?

But let's applaud the American people who never met a panderer they didn't like. "Here's 18 cents a gallon kid, pay no attention to that man behind the curtain."

Blah Society said...

Bernie, so basically the price of gas won't drop all that much?

Just trying to put a perspective on whether or not this is actually worth it. Sounds like it will still be over $3 which is still not good, just better than worse.

Anonymous said...

In my opinion, this gas tax suspension will actually cost the average American when the opportunity is considered.

Suspending the gas tax for the summer will do little more than increase demand for gas forcing the price upward.

At the end of the day, we will be paying nearly just as much for gas only the profit margins will be greater for the oil companies and the public (American Government) will miss out on all that potential revenue which can be used towards roads or R & D for Alternatives.

Anonymous said...

I thought we were supposed to be better served in the long term by higher gas taxes to discourage use of gas-guzzling, internal combustion engines. Aren't these times of energy inflation a good thing? Al Gore recommended we at least pay European-style prices and we're not there yet. Why are we running from this inconvenient truth when the earth is in the balance?

Anonymous said...

... and what about the funds that will be pulled away from infrastructure maintenance - which bridges will suffer as we give our fellow citizens another $30?

Heck, I've already donated my "economic stimulus" to the ACLU -= I guess they won't mind another $30.00

Anonymous said...


I thought we were supposed to be better served in the long term by higher gas taxes to discourage use of gas-guzzling, internal combustion engines. Aren't these times of energy inflation a good thing? Al Gore recommended we at least pay European-style prices and we're not there yet. Why are we running from this inconvenient truth when the earth is in the balance?


A good question for Senators Clinton and McCain. It's called pandering.

The problem here is that gas prices are artificially high due to market manipulation. Again, think Enron.

Anonymous said...

Bernie, Jump on the band wagon like the Coplay Democratic Club .... Clinton - Obama or Obama - Clinton .......... forget about the media hyped election ...

Anonymous said...

Bernie, you are just wrong on this one. It is not that Obama is out of touch with the "common folk," but that it is bad economic sense AND bad political sense to give a tax holiday for the Summer.

From an economic standpoint all lower prices will do is increase demand for oil ... not exactly in the best interest of the USA. Long term we become even more dependent upon foreign oil and the not so nice countries that supply it. And the taxes that would be cut are the federal taxes that help pay for road and bridge repairs (not that we need any of that anyway).

Politically, what happens in September when the $0.18 tax is reinstated? Oh yeah ... you get blamed for raising the price of gas on the American people. And, if you raise the cost of gas you probably aren't going to get elected.

Stop being so short sighted and look at the big picture. On 09/11/2001 the price of gas was $1.29 per gallon (the old Exxon station at 191 & 22 closed on that date and the sign still shows the price of gas).Since then we have spent $700B+ on a bogus war; We have had no energy policy; We have not put the resources necessary toward alternative energy. And gas is $3.59/gallon.

Bottom line: If Ronald Reagan had not put an end to the policies enacted during the Carter Administration we would be energy independent just like Brazil. Maybe another energy crisis is just what we ned to get people to do what is necessary. Obama right, McSame and Hillary wrong.

Blah Society said...

On 09/11/2001 the price of gas was $1.29 per gallon (the old Exxon station at 191 & 22 closed on that date and the sign still shows the price of gas).

I think that station closed shortly after 9/11. I could be wrong, but it's not important.

Anonymous said...

I think Obama considers this a tax break for rich suburbanites with big SUVs. The urban poor are probably the least impacted by high gas prices as they drive shorter distances or use other forms of transportation.

Anonymous said...

how much money would we sacrifice for bridge/highway repairs if we enacted this?

I'm willing to sacrifice some of those funds, but with PA's roads/bridges already in sad shape, we need to be careful how much we sacrifice. As I'm reading it, Clinton/McCain don't even want to ask that question. That's troubling.

Anonymous said...

Diesel fuel for trucks is at $4.50 a gallon. The very same fuel oil that is used in homes in the winter time except the highway tax is added to the truck fuel and a little bit of kerosene in the winter to help the trucks start in the cold. I am sad to say that it will be a disaster in the winter to come. Henry

Anonymous said...

" Anonymous said...
how much money would we sacrifice for bridge/highway repairs if we enacted this" It was the state and feds who dropped the ball on this. We have been paying for repairs ever since we started driving. I feel it boils down to poor managenent and pure greed in the cardboard check porkbarrel politics. Millions of dollars a year from the Gaming revenue go to the Convention Center in Philadelphia to support it each year instead of the so called property tax reform, what a joke. Allentown will get $500 per homeowner, Easton, $100..????? Is this a joke or what?

Anonymous said...

""Anonymous said...
I thought we were supposed to be better served in the long term by higher gas taxes to discourage use of gas-guzzling, internal combustion engines. Aren't these times of energy inflation a good thing? Al Gore recommended we at least pay European-style prices and we're not there yet. Why are we running from this inconvenient truth when the earth is in the balance?

7:33 AM"" Hi anon 733 , Unfortunately we are the minority here. China, India, and russia alone add up to over 3 billion people and I will bet they are at least 100 years behind us in environmental anything. Add in everyone else on earth and it seems that the USA is one of the few that are even trying to do anything. Down in Mexico raw sewage goes in the same stream water they use to water crops with, some of which are shipped to the USA as "fresh" produce. When it comes to polution, the USA is no where near the level of China, Russia,India, and add many others to the list of countries who do nothing but then expect us to clean up their mess. Thanks

Chris Miller said...

Bernie
In order to get the price of gas down we need to confront short, medium and long term needs. We need to drill off the coast and in the Arctic. We need to reduce the regulations on refineries and we need to build nuclear plants and use clean coal
Long term we should look at alternative fuels that do not require burning any kind of food--that is simply stupid--almost as stupid as making clothing out of petroleum. Hydrogen fuel cells, solar and maybe wind have a place in all of this but right now it is minimal and we cannot survive on minimal and the rest of the world will not survive without us.
We need to look to a decent rail and ligth rail system of transportation to get diesel trucks off the road because diesel fuel inhaled in significant amounts, causes cancer.
We need to revamp our tax system. It needs to be a fair and simple tax. The corporate tax needs to be reduced because we pay that. Hillary's gas tax holiday with a windfall profits tax on the oil companies is no assistance to the people. We need to eliminate social security as it exists because it is a bad system. We need to eliminate silly but costly government programs. In short we damn well need to get our house in order and move away from becoming a socialist nation.

Anonymous said...

Yes, but the USA has by far the most passenger vehicles of any country in the world.

Blue Coyote said...

Bernie, sorry to disagree with you on this one, but....

Every economist known to mankind, said that what McCain/Clinton's pandering will ultimately hurt the USA in the long run. They haven't got one economist to agree. Clinton was asked that question and couldn't come up with an answer.

All that would happen is the big oil companies would shift profits from oil exploration/alternative fuel research.

Bernie O'Hare said...

Blue Coyote, Actually, I do agree w/ Obama, but just don't think it's politically astute for him to take so strong a position on a matter that will be construed to make him look as though he's out of touch.

Blue Coyote said...

The Clinton photo-op of her "arrival" in a pickup truck at the gas station was over-the-top Carvillesque, but very poignant. Like the sign, "It's the economy, stupid", her coming out with the tax roll back, may win votes, but doesn't make sense in the long run. Sometimes, I think Americans are very short sighted.