Letters to the Editor
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Backers of Hillary's gas tax holiday should give it up
Basically, it is absurd to say that a summer-long price drop of this tiny magnitude will have any long-term effect at all.
This statement was offered as a defense against the argument that a gas tax holiday would stimulate demand. But it is an equally valid description of the financial benefits a tax holiday would offer- tiny.
A gas tax holiday is an offer to believe in the memory of cheap oil. Perhaps oil prices will drop significantly again, but perhaps not. The risk adverse, smart thing to do is bite the bullet and figure out how to reduce demand, not to engage in pandering activities that won't do much one way or another.
Obama did learn from Illinois' gas tax holiday. Sure, 60% of the tax cut may have made it to the pump price (quiz: where'd the other 40% go?), but 100% of the lost revenues either resulted in more debt, loss of services, or were funded by other taxes.
Consumption taxes may not be popular, and risk being regressive, but they are the most economically efficient taxes around.
Go, Obama.