Letters to the Editor
drobert@bfm.bm
Published Letters: 1
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Once again, fact-free idiocy from a Clinton crony
[Read the article: Obama is wrong about the gas tax]
[Read more letters about this article: Here]You kinda went fast on this line:
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Gas retailers must post on each pump a statement that indicates that the state tax has been suspended and that this temporary elimination of the tax should be reflected in the price per gallon of gas
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That's pretty darn crucial. I haven't heard Clinton state how she would ensure that ALL the savings from the tax holiday went directly to the consumer. She hasn't even indicated that she'd make that a condition of the tax holiday.
The major problem when a hidden tax is reduced, is that the temptation is simply too great for vendors to simply pocket most or all of the savings, and keep their prices pretty much as is. They might reduce their prices for the first few weeks, but then they'd simply raise them again.
That is precisely what happened upon the introduction of the GST in Canada to replace the old manufactured goods tax. The GST was significantly below the old tax, but prices did NOT go down as a result, because merchants and intermediaries simply pocketed the difference.
That's why the tax holiday, without a SERIOUS plan for enforcement, is nothing but a political pander.