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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]

  • State gas taxes are paid at the pump, federal are not -- It's a BIG difference

    The big difference between what was done in Illinois (and supported by Obama) and what Clinton/McCain is proposing (not supported by Obama) is that state levied gas taxes are paid at the pump. The federal fuel tax is paid by the oil companies out of revenues (profits).

    Now, let's assume you're an oil company and you're told, "Hey, you know that 18 cents/galloon you've been paying us? Well, keep it." Where do you think that additional profit is going to go? To the shareholders, not to consumers.

    So, suspending a state tax will create an immediate drop in fuel prices. Suspending federal fuel taxes will only further enrich the oil companies and make zero difference at the pump.

    If we really wanted to be able to manipulate the price of fuel in some meaningful way, the only option is nationalizing the oil industry. But people don't care about lower fuel prices THAT much.

    -- dnedrow
    [Read dnedrow's other letters]
    Monday, May 5, 2008 08:55 PM
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