Hillary Clinton and John McCain are offering overburdened motorists a federal "gasoline tax holiday." But economists say that the proposal is unlikely to actually lower the price of gasoline. McCain's plan would essentially give federal funds to oil refineries, while the net effect of Clinton's plan probably wouldn't be much at all, although it would create a lot of new administrative work.
(BTW, in the worm's-eye view of the Indiana primary, our household has received six calls of various kinds on behalf of Clinton, none on behalf of Obama.)
4 comments:
Sounds like a bit of a stretch. The money has to go somewhere. Either the government, oil company, or to the consumer in the form of lower prices. I would suspect it would be split, with the consumer getting most of the piddly gain. The market for consumer gasoline is very competitive. FactCheck.org doesn't really explain why they (or the brilliant economists they summarily quote) think that gasoline retailing is not competitive.
I agree it does not make that much difference, but any time the government confiscates less, it is surely a good policy to support.
JBP
Don't bother which politicians are in office, but support all tax cuts: this is libertarianism in its purest, most nihilistic (and, I might add, anti-democratic) form.
Why, thanks Harold, I've never considered my politics that pure.
JBP
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