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Obama is wrong about the gas tax
Think Clinton's plan to suspend the gas tax temporarily is a bad idea? A similar measure in Illinois -- which Obama backed -- seems to have helped consumers.
By George Frost [2008-05-06]

  • Read the Freakonomics Blog

    The Illinois gas tax holiday, which you're right, Obama supported, cost the state an estimated $146 million in tax revenue. Only 70% of the tax rebate was passed down to consumers, but when the tax was reinstated, 80-100% was taken back. That means you're talking about a 10-30% price gouge over the course of the rebate. Essentially, instead of giving the money back to the taxpayers, the tax "holiday" was in reality a 14 to 44 million dollar subsidy to the refined oil industry. Tax money has to come from somewhere.

    Obama was wrong about that gas tax holiday, but he's right about this one.

    -- Devizier
    [Read Devizier's other letters]
    Tuesday, May 6, 2008 08:10 AM
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