As a comedian once said, "Of course Americans want lower taxes, they want to loose weight by eating ice cream too!"

You would think the blogosphere would be smart enough to see through this Pander-Bear?!

The gas-tax holiday is great politics/bad policy, but MyDD should be better than that! We are here to promote progressive values . . . not political pandering.

1 candidate will tell use the truth no matter how hard it is to hear

1 candidate will say whatever to get votes.

hmmmm who do I want for president again...

I fail to see that Clinton is supporting McCain here.  She surely sees the tax holiday as a significant symbolic gesture, hand in glove with a tax hike (the real motivation here) on the oil industry to cover the revenue shortfall to the government.  Good all around.  No logical person thinks that an 18-cent tax cut is going to do anything substantive.   Who knows, it may lead to a more progressive tax in the end.  Just because Clinton likes the tax holiday doesn't mean she is in bed with McCain.

As such, even though I think it would behoove Obama to stress not only that this McCain-Clinton proposal would not achieve what it sets out to achieve but it would also have direct and adverse effects on American infrastructure (the tax goes directly to funding projects to shore up and build roads) and the U.S. economy (the tax helps pays for thousands and thousands and thousands of jobs right here in America)...

This is pretty goshdarned dishonest.  McCain's proposal would certainly do these things.  Clinton's proposal, unlike McCain's, would use a windfall profits tax to make up the revenue shortfall.  So please, no horror stories about bridges falling down.  And there's no need for point-scoring by calling it "the McCain-Clinton proposal" when there's a very significant difference between the two proposals in this respect.

I almost always agree with Krugman and I'll agree with him this time too: Clinton's proposal for a tax holiday is a bad idea.  But the reason isn't that it would create some massive shortfall in tax revenues; her plan addresses that.

And I think Jerome also had a good point about the politics of the situation.  You know, if one side is saying you'll pay less for gas, and the other side is saying that 9 out of 10 Brookings economists disagree, I'm not so sure the second person is the one who wins in a political context.  Deplore it all you like.

But one thing you may - or may not - have noticed is that the media demonstrated NO interest in pointing out that the tax holiday was a worthless pander back when McCain was the only one pushing it.  In fact, they actually helped McCain by making ridiculous claims that a tax holiday might reduce gas prices by 20%!  Now that Hillary is involved, the media displays a sudden interest in fact-checking and presenting the other side... which is actually kinda cute.  But bear in mind that they did nothing to put McCain through the same process, and think about what that implies.

This the complicated argument versus the simple argument. It will be interesting to see who wins.

The one thing that helps Obama here is that the gas prices have climbed so quickly that 18.4 cents looks like absolutely nothing. Gas was 3.25 here a couple weeks ago and now is 3.75. 50 cents in half a month. And it keeps going up.

The long-haul truckers need help now though. I'd like to see some policy proposal put forward to help out the guys(and girls) that are buying hundreds of gallons at a time of 4.25 diesel.

First the rebate check, now a gas tax holiday. Do we all get free cars next? The US Government is not Oprah!

This Barack Obama is one hellva Candidate.

I can see why Hillary is losing.

Interesting to see Barack going back to his classic themes:

(1) Change cannot occur without me (trust me)

(2) I'm now going to re-state Hillary's position on the issue, and pretend its unique to me

Remember, Hillary has not suggested for an instant that some tax relief is the only solution.  After Barack Obama voted for the Bush-Cheny energy bill that gave away billions to Big Oil, Hillary decided its time for a windfall profits tax - she's going to reinvest that money into the Highway Trust Fund, and also give some of it back to you in the form of tax relief.  But her plans certainly don't begin or end there.

She offers us a more expansive plan to ignite the green collar revolution.  Don't take my word for it!  Read each candidate's plan from their website and become more educated.  It can't hurt. ;)

Hillary had already stated her intention to launch a fullscale DoJ investigation, looking into possible price manipulation, before Barack decided to follow her lead.

They say that immitation is the highest form of flaterry.  If so, Barack must love Hillary as much as we do. :)

Yowza! That's what I'm talking about. I want to see more of that Obama.

The so-called "holiday" is a minor point in a comprehensive plan.

from her site, which I assume Obama staffers can locate for themselves.

OREGON: Hillary Clinton's Plan to Address Soaring Prices at the Pump

Americans are being squeezed at the pump like never before. The price of oil is approaching $120 a barrel, and Europe's two biggest oil companies, Royal Dutch Shell and BP, reported record first-quarter profits today. Gas prices are at record highs in Oregon, where a gallon today costs $3.66, up from $3.42 a month ago and $3.26 a year ago - that's a 12 percent increase in just one year. And while the average family's energy costs have gone up $2,000 a year since President Bush took office, average Oregon family incomes have been flat. Record oil prices are contributing to higher energy prices, food prices and a squeeze that is making many middle-class families feel like they are falling further behind.

American families are hurting now. They need a President who will focus every day on ensuring that they can make ends meet. That is why today, Hillary is discussing her aggressive plan to address the problem of skyrocketing gas prices. Hillary's plan includes:

   * Imposing a windfall profits tax on oil companies and using the money to suspend the gas tax for the peak summer months;
    * Closing $7.5 billion in oil and gas loopholes and using the funds to provide assistance for lower-income families to pay their energy and grocery bills;
    * Cracking down on speculation by energy traders and market manipulation in oil and gas markets that are driving up the price of oil by at least $20 a barrel;
    * Pressuring OPEC to increase oil production, including by filing a WTO complaint against OPEC countries
    * Stopping new additions to the Strategic Petroleum Reserve and standing ready to release oil to counter market spikes and reduce volatility.

This plan builds on Hillary's long-term plan to reduce our dependence on foreign oil and address global warming. She has committed moving America towards energy independence by cutting foreign oil imports by two-thirds from 2030 projected levels, more than 10 million barrels per day.

Details of Hillary's Plan

Enact a Windfall Profits Tax on Oil Companies to Pay for Temporarily Suspending the Gas Tax - Hillary will impose a windfall profits tax on oil companies and use the money to temporarily suspend the 18.4 cent per gallon federal gas tax and the 24.4 cent per gallon diesel tax during the upcoming peak summer driving months. Hillary will ensure that this relief is passed along to consumers by charging the Federal Trade Commission with conducting aggressive oversight. Unlike Senator McCain's plan, Hillary's plan will be fully paid for by taking away oil company profits through a windfall profits tax. This will ensure that the Highway Trust Fund is not affected at all by the gas tax suspension, and can continue to support critical repairs and maintenance for our infrastructure and highways.

Suspending the gas tax will provide real, immediate assistance to American families and for our economy. Recent testimony before the House of Representatives by the American Trucking Association indicates that even small changes in price can have big impacts. Just a one-penny decrease in the price of diesel annualized over an entire year would save the trucking industry $391 million a year.

Take Immediate Action to Crack Down on Speculation and Market Manipulation in Oil and Gasoline Markets - Oil and gasoline markets contain loopholes for traders, and the markets are inadequately policed by regulators under current law. As a result, there is considerable concern that current market prices reflect the influence of speculators and other forces beyond supply and demand. In early April, an Exxon Mobil executive testified under oath before a House committee that the price of oil should be $50 to $55 per barrel based on supply and demand fundamentals. Marathon Oil's CEO stated last October that: "$100 oil isn't justified by the physical demand in the market...it has to be speculation on the futures market that is fueling this." Hillary would take action to reduce the influence of speculators, crack down on market manipulation in oil markets, and outlaw price gouging by:

   * Closing the Enron Loophole - Hillary supports closing the "Enron loophole," which exempts electronic trading of energy commodities by large traders from U.S. government regulation. The loophole has helped lead to the dramatic growth of trading on unregulated electronic energy exchanges, and has made the U.S. energy markets vulnerable to price manipulation and excessive speculation. Even Alan Greenspan has cited "investors and speculators who took on larger net long positions in crude oil futures" as one cause of oil prices. In June 2006, the Senate Permanent Subcommittee on Investigations issued: "The Role of Market Speculation in Rising Oil and Gas Prices: A Need to Put the Cop Back on the Beat." This report analyzed the degree to which financial speculation in energy markets had contributed to the dramatic increase in energy prices in recent years. The report concluded that "[s]peculation has contributed to rising U.S. energy prices," and endorsed the estimate of various analysts that the influx of speculative investments into crude oil futures accounted for approximately $20 of the then-prevailing crude oil price of approximately $70 per barrel.
    * Protect the consumer market from price gouging for petroleum products - Hillary will make it unlawful for any supplier - wholesaler or retailer - to sell crude oil or gasoline at an unconscionably excessive price. Price gougers would face new fines and criminal penalties of up to $1 million and five years in prison and civil penalties could be assessed from $500,000 up to $5 million. Today, there are no federal laws prohibiting price gouging in the oil and gas industry, leaving some states to prohibit these actions. In 2006, the Federal Trade Commission conducted a study of post-Katrina gas price, and while it did not find widespread gouging, it did find 15 examples of pricing at the refining, wholesale, or retail level that fit a definition of price gouging under legislation that Senator Clinton has backed and is proposing to enact now.
    * Call on the Federal Trade Commission to Take Action Against Market Manipulation in Wholesale Oil Prices - The energy bill passed last year included new provisions to provide greater transparency and prevent manipulation in wholesale oil markets, and to empower the Federal Trade Commission to investigate and pursue violations. Unfortunately, the Bush Administration has chosen not to use this new authority. To ensure that oil companies and traders are not ripping off consumers, Hillary is calling on the FTC to begin investigations using these new powers. In addition, Hillary is calling on the FTC to propose regulations under the new law within 60 days to prevent market manipulation in oil markets. Recent cases show that market manipulation is a concern in oil markets. In 2007, Marathon Oil paid a $1 million fine to the Commodities Futures Trading Commission to settle charges that a subsidiary had tried to manipulate crude oil prices in 2003. Action by the FTC to investigate the current oil market and to develop and enforce new prohibitions on market manipulation would help to minimize foul play in oil and gasoline markets.

Take more aggressive action to pressure OPEC to increase production - OPEC recently reiterated that it will not even consider increasing crude output until September 2008, even though limited supplies are contributing to record oil prices. Hillary believes we should be taking more aggressive action to address OPEC's control over global production levels and hold OPEC accountable for its decisions. President Bush's efforts to pressure OPEC over the past seven years have been inconsistent and unsuccessful. Hillary supports sending a strong signal to OPEC that the era of complacency has ended. Hillary will:

   * Use the WTO to Challenge OPEC's Production Quotas - With nine of the thirteen OPEC member countries also being members of the WTO, Hillary believes we should use the tools available at the WTO to address OPEC's refusal to increase production. WTO rules currently prohibit member countries from imposing export quotas. Yet OPEC member countries are actively and explicitly banding together to restrict oil production and affect global prices. Hillary is calling on the President to engage in immediate negotiations with OPEC members and, if no progress is made, file a formal complaint against OPEC countries at the WTO. Filing a complaint at the WTO will send a clear signal to OPEC countries that the U.S. is committed to an open, transparent global oil market. Such a step will give OPEC members an incentive to increase production as well.
    * Allow OPEC Production Decisions to Be Challenged Under U.S. Anti-Trust Law - Currently, OPEC countries cannot be challenged under U.S. anti-trust laws, even when they are engaged in coordinated, commercial activity to control the global oil market. Hillary supports amending the Foreign Sovereignty Immunities Act so that the Justice Department can bring suits against OPEC countries in U.S. courts for price fixing. Changing the rules would help hold OPEC countries accountable for their decisions.

Close the oil and gas loopholes and use those resources to provide direct assistance to working families facing skyrocketing energy bills on top of record gas prices. Hillary believes that in addition to imposing a windfall profits tax on large oil companies, Congress should move immediately to end the approximately $7.5 billion per in tax giveaways and subsidies that we continue to provide to oil and gas companies, despite their record profits. These subsidies are in part a result of the 2005 Energy Bill she voted against. She would use those resources this year to provide assistance to lower-income families who are not only being hit at the gas pump, but with skyrocketing energy and food bills as well. This winter, a record number of families were forced to seek assistance through the Low-Income Home Energy Assistance Program (LIHEAP) to heat their homes. This included 61,000 Oregon families. Hillary was the only candidate to call for providing emergency energy assistance to these and other struggling families as part of the economic stimulus package. Now, as many states' moratoriums on utility cutoffs expire this spring, millions of families could face the prospect of having their energy shut-off and having to go without electricity, hot water or the ability to keep their homes cool this summer. Hillary will use a portion of the proceeds from closing the oil and gas loopholes to ensure that these hardworking families, who are already struggling to pay for gas at the pump, do not face the extra hardship of having their energy cut off. She will use the remainder of the proceeds to provide immediate aid to lower-income families that are facing high food prices as a result of the record price of oil.

Stop filling the Strategic Petroleum Reserve (SPR) and release oil from it when that becomes necessary - Hillary is calling on President Bush stop taking oil off the market and putting it into the Strategic Petroleum Reserve (SPR). The SPR is now 97 percent full, which analysts believe is more than adequate. Continuing to fill it at these high prices exacerbates high oil prices and costs taxpayers money. Hillary also believes that the SPR should be more actively managed to enable releases from the SPR to counter market spikes and reduce volatility.

Proposals to Reduce our Dependence on Foreign Oil Over the Long-Term

The plans to address rising gas prices in the short term build on Hillary's bold, long-term, comprehensive plan to reduce our dependence on foreign oil and move America towards energy independence. (www.hillaryclinton.com/poweringamericas future.pdf). Key elements of that plan include:

   * Raising fuel efficiency standards (CAFE) to 55 miles per gallon by 2030;
    * A $150 billion investment in researching, developing, and deploying renewable and alternative energy;
    * Cutting our foreign oil imports by two-thirds by 2030;
    * Providing $1.5 billion per year for public transit, an additional $1 billion for intercity rail, and additional funds for congestion reduction, better traffic management and telecommuting;
    * Providing tax credits and research and development funding for plug-in-hybrid vehicles, which can get up to 100 mpg; and
    * Conserving fuel in the federal fleet. Hillary will call on all federal government agencies to suspend non-essential travel and other activities that use gasoline or diesel fuel, and encourage employees to carpool, telecommute, and use public transportation to reduce fuel use. And she will direct federal employees to reduce maximum speeds to conserve fuel, with exceptions for law enforcement and other emergency services. Under Hillary's plan, the agencies will to report to the White House once a month on their energy use and the impact of conservation efforts.

I think it is silly to suggest that all of a sudden people will drive  more if there is no tax for the summer. It may mitigate the usual summer increase. One thing that would help the most is to increase MARGIN requirement on gas trade at the futures market driving the speculation out.

Gas prices are not driven by demand at the pump but by supply at the oil well.  For crying out loud, it is not like the demand for gas in the U.S. has shot up over the last two years.

Why is Barack Obama and MSM always so stupid when it comes to economics?

Lowering the tax will lower prices at the pump and yes some benefit may temporarily go to the oil companies. Sheesh.

The problem with Hillary's postion is its Political Suicide in the fall (unless see assumes that both of her plan's parts would be aprt of one bill and that such a bill would automatically be vetoed, which frankly would be even more disingenous):

Let's say be some miracle both of Clinton's bill parts go through, and that she somehow wins the nomination (both things which are are around 1% likely), in August when the Holiday end McCain wil push legislation to make the Holiday permanent, when Hillary opposes said legislation McCain will quite rightly run on the argument that "Hillary wants to rise the price of gas, at a time of record prices Hillary Clinton wants make you pay even more at the pump" and once he does that, if Jerome is right about the shortsighted stupidity of the average voter, well the eolection's in the bag.

http://money.cnn.com/2008/04/30/markets/ oil_eia/?postversion=2008043015

Stunted demand and record high prices has left refineries operating at 85.4% capacity this week, little changed from the week prior. Refineries typically operate around 90% at this time of year.

They could ramp up production if they wanted to but because gas companies control all aspects of exploration, production, distribution, they game the system (increasing and decreasing production) to maximize their profits.

Jonathan has made a disingenuous, barefaced attempt to deceive, manipulate and frame this issue to Obama's advantage and Hillary's detriment.

As we can see from the comments above, he has fooled no one.

For shame, Jonathan.  The "McCain-Clinton Gas Tax"???

So lowering the price of gas might make people want to --GASP!-- DRIVE?  And by driving, they might --GASP!-- actually spend money on other things, like vacations that would --GASP!-- spur the economy?

Wow, that really IS a dumb idea.  Who needs to spur the economy?  Amazing...

link

Obama took a different view on the issue when he was an Illinois legislator, voting at least three times in favor of temporarily lifting the state's 5 percent sales tax on gasoline.

The tax holiday was finally approved during a special session in June of 2000, when Illinois motorists were furious that gas prices had just topped $2 a gallon in Chicago.