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From the Fact Check Desk: Did the NYT Say Clinton's Gas Tax Vacation Plan Would 'Boost Oil Industry Profits'?
May 04, 2008 8:29 PM
Sen. Barack Obama's new attack ad "Boost" -- running in Indiana and North Carolina (watch the Tarheel version HERE) -- is being called into question by camp Clinton for the alleged mis-use of a quote.
Let us delve.
The quote in the ad says of Clinton's gas tax vacation proposal, "experts say it will boost oil industry profits," and it cites the New York Times on April 28, referring to a column by Paul Krugman -- generally a columnist supportive of Senator Clinton's plans.
But the column in question -- and the quote -- have nothing to do with Clinton. They have to do with Sen. John McCain's gas tax holiday proposal -- which Krugman refers to as "a measure that would, in fact, do little to help consumers, although it would boost oil industry profits."
In fact, Clinton's name doesn't appear in the column even once.
But a day later, in his blog, Krugman wrote "John McCain has a really bad idea on gasoline, Hillary Clinton is emulating him (but with a twist that makes her plan pointless rather than evil), and Barack Obama, to his credit, says no. Why doesn’t cutting the gas tax this summer make sense? It’s Econ 101 tax incidence theory: if the supply of a good is more or less unresponsive to the price, the price to consumers will always rise until the quantity demanded falls to match the quantity supplied. Cut taxes, and all that happens is that the pretax price rises by the same amount."
Krugman says that the "McCain gas tax plan is a giveaway to oil companies, disguised as a gift to consumers. Is the supply of gasoline really fixed? For this coming summer, it is. Refineries normally run flat out in the summer, the season of peak driving. Any elasticity in the supply comes earlier in the year, when refiners decide how much to put in inventories. The McCain/Clinton gas tax proposal comes too late for that. So it’s Econ 101: the tax cut really goes to the oil companies."
And then this key sentence: "The Clinton twist is that she proposes paying for the revenue loss with an excess profits tax on oil companies. In one pocket, out the other. So it’s pointless, not evil. But it is pointless, and disappointing."
So he suggests that Clinton's gas tax proposal will give revenues to oil companies then take them away with her "windfall profits tax."
Today on a conference call, the effervescent Phil Singer of the Clinton campaign complained that Obama's ad "actually takes a line and uses a column about criticizing Senator McCain’s approach to support the gas tax in order to criticize Senator Clinton...they are misquoting a column to make an attack on Senator Clinton."
Obama spokesman Bill Burton says that their campaign doesn't "concede that the McCain and Clinton plans are different." He adds that the Clinton proposal has been widely discredited by economists and many of Sen. Clinton's own supporters. But a debate about the merits of Clinton's proposal is not an answer as to whether the Obama campaign is quoting Krugman correctly.
Singer is on key; the Obama campaign is using that quote falsely.
- jpt
May 4, 2008 in 2008: Democrats | Permalink | User Comments (64)
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We've reached peak oil supply.
They need to talk about that.
We need to go electric now for our transportation needs.
Posted by: Jeff U'Ren | May 6, 2008 1:46:14 PM
People seem to be forgetting the "economic stimulus package" money which congress and the president approved. The Democratic leaderhip acknowledge it as short-term relief and called for a long-term economic strategy, as well. The Dems. had to compromise with the Republican opposition in order to allow Social Security beneficiaries to receive this benefit. What is the fundamental (not nit-picking) difference between the economic stimulus package and the gas tax holiday?
Posted by: Cynthia | May 6, 2008 12:52:00 PM
Most people agree the gas tax is a bad idea. 49-45 in a recent poll. What is more astonishing is that 73% think it is nothing more than political pandering. Yet somehow this issue is a winner for she who shall not be named? I am probably one of those Obama supporters people don't understand. I am not black, rather white, southern baptist, live in alabama, and astounded that somehow being an elite(usually a good thing) thinker is bad. Obama is proving that on the gas tax issue he is right about Washington and CLinton, that it is more business as usual instead of real solutions. At a time when Americans are losing jobs at an alarming rate it has been said this proposal could cost as many as 6000 jobs in Indiana in the costruction industry. Does Indiana really need 6000 more unemployed people so everyone can save 30-50 cents a day? Wake up people. we have been following the not so smart for 8 years, maybe just maybe it is time to give the "elite" guy a crack at the job. And all elite guys i know paid for their own college and took out massive student loans. Yeah those peopl are the elite not the ones who got to Wellesley and Yale while it is being paid for by staunch republican daddy.
Posted by: dave | May 5, 2008 2:48:52 PM
Hmm.
Posted by: Misty S. | May 5, 2008 1:40:36 PM
I keep hearing the supply and demand argument against the tax holiday. There are two kinds of drivers, those who will drive as much as they want regardless of the price and those who have already cut back and are barely surviving. Does anyone seriously think that by cutting the gas price by less than 20 cents a gallon is going to make the second group suddenly throw caution to the wind and consume like crazy people? Get real!!
Posted by: Firefighter | May 5, 2008 1:19:44 PM
It is important to remember that the gas tax holiday argument is a metaphor for the basic economic messages of the campaigns of Obama and Hillary.
Obama's "elite" supporters could care less about saving a few cents a day when they buy gas. Instead, they want long-term, big picture solutions. These people are not being hurt by gas prices, home mortgages, or anything else today. They are economic winners who have the luxury to think long term. By opposing a short term fix Obama is telling his supporters that he will support long term solutions, and will not be concerned much about casualties in the ranks of the economic losers.
Many of Hillary's supporters are economic losers -- people marginalized by the fast moving changes in the workplace. Hillary is saying to them that she feels their pain, and will make sure that government is there to protect them.
Posted by: David H | May 5, 2008 12:01:32 PM
OBama at NC and Indiana did nothing but negative campaigning.
Negativity soars while OBAMA ducking debates, providing no solutions.
Why doesn't anyone tell us about negativity now? The party is obviously biased sending out Joe Andrew to fix the primary while keeping Florida and Michigan disenfranchised because once revote is possible, Clinton campaign may pick up steam.
Why would the party want OBAMA? It is because Clinton will work up their rear while OBAMA is so green they can party in Washington and let OBAMA takes the blame.
Posted by: John_Lai | May 5, 2008 9:44:57 AM
Corrected some typos. I was rather passionate in writing this appeal. HRC can quote me on this one: She says nothing about the restoration of habeas corpus, your right to be charged with a crime before you are arrested, and Obama will restore your right to be charged with a crime, habeas corpus.
You can see in the first three minutes of the Pirates of the Carib. (at the worlds end) the list of freedoms and rights that have been taken from us. That movie is about present day America, cast as the oppression of Brits fighting against pirates. In reality all those rights and constitutional rights were take from YOU, during the past 7 years and HRC is saying nothing about it.
The election is not about whose minister is the dumbest. Or whether we should give 18 cents to people who drive SUV's when everyone understands you can buy a car that gets 40 MPG and be able to afford gas, and you wont drive up the demand.
This election SHOULD be about taking our civil rights back, now. Vote to uphold the constitution.
Vote for Obama and take back the national heritage our founding fathers gave us and which HRC swore on oath to uphold. She say nothing because she saw what Fox did to Bill, s she is afraid of the Fox spin, and she wants to win more than she wants to stand up for your rights as a citizen.
Vote for Obama and be a citizen, fight for our heritage and freedom now. Tell any person who fought in a war, our constitution is in peril.
Only Obama will restore it.
Posted by: bruce becker | May 5, 2008 9:40:57 AM
she can quote me on this one: She says nothing about the restoration of the habeas corpus and Obama will restore your right to be charged with a crime.
You can see in the first three minutes of the Pirates of the Carib. (at the worlds end) the list of freedoms and rights that have been taken from us. That movie is about present day America, cast as the oppression of Brits fighting against pirates. In reality all those right and constitutional righst were take from YOU, during the past 7 years and HRC is saying nothing about it.
The election is not about whose minister is the dumbest. Or whether we should give 18 cents to people who drive SUV's when everyone understands you can buy a car that gets 40 MPG and be able to afford gas, and you wont drive up the demand.
This election SHOULD be about taking our civil right back, now. Vote to uphold the constitution.
Vote for Obama and take back the national heritage our founding fathers gave us and which HRC swore on oath to uphold. She say nothing, she is afraid of the fox spin, and she wants to win more than she wants to stand up for your rights as a citizen.
Vote for Obama and be a citizen, fight for freedom now.
Posted by: bruce becker | May 5, 2008 9:37:02 AM
It would appear that if voters choose to support Hillary's gas tax holiday, only to gain $15-30 in savings over the ENTIRE summer - they're pretty desperate. That doesn't even equate to 30 cents per day!
Give up the cigarettes, or the alcohol, the hair salon or nail salon, or the fast food for a week instead. I remember having to make bigger sacrifices when I was first married and had a small child. I didn't even have $1 in the bank at the end of the month before the next payday. I scrimped and saved too.
Once again, we find that folks are ready to 'jump' on a quick buck rather than choose the solution that would truly address the oil price issue once and for all.
We Americans have been spoiled by low gas prices for years while the Europeans have paid higher prices for much longer.
We Americans take for granted the resources we have at our finger tips now - without thinking about tomorrow. This is the price we pay for that type of greed.
Preserve our oil and gas resources, our water resources, recycle more, invest in alternative energy sources (wind and water); teach our children to do the same.
Posted by: GrandmaCDA | May 5, 2008 9:28:31 AM
Clinton has already introduced legislation to try to get this gas tax lift into effect. Truth means little to Obama when a vote is emminent. Obama repeatedly voted for gas tax cuts as a state senator in Illinois and when the rest of the legislature voted against them in the end, he still voted for it.
Posted by: jkr | May 5, 2008 9:16:15 AM
All the people stating this will not help dont have a problem in their budget of paying $70 for a tank of gas.
Posted by: toby | May 5, 2008 9:16:06 AM
This argument is pointless b/c neither John McCain nor Hillary Clinton will be president by the summer, so why this proposal???
Empty promises
Posted by: Vanessa | May 5, 2008 9:00:01 AM
you can see the fear in Obama folks' posts. The handwritting is on the wall. Obama is no longer electable.
Axelrod was near hysteria on this morning's shows. He knows the numbers. And they ain't good for Obama.
The voters want the gas tax holiday under Sen. clinton's terms. Obama is going to pay a big price for his opposition, or should I say Axelrod's opposition. Axelrod made a bad gamble on this issue, and has lost!
Posted by: MC | May 5, 2008 8:50:00 AM
as usual , mr. obama lies.
mr. negative lives to lies another day
Posted by: trettin | May 5, 2008 8:49:42 AM
rd,
I am working class, not elitist. Nobody thinks I'm liberal. I am female and older than college age, if you're going to spout more generalistic demographics. In response to this specific post, she is pandering. I think that's a little worse than "testicular fortitude." I don't see the big difference this "holiday" is going to make if it means road crews getting laid off and our infrastructure falling into dangerous repair in the long term.
Posted by: softspoken22 | May 5, 2008 8:25:36 AM
Yeah...because he is black...and have the most delegates... and has the most states won...and have the most popular votes... and is honest....and is changing Washington...yeah..that's why.
Posted by: Lawrence | May 5, 2008 8:15:43 AM
If you are a Hillary supporter, you need to check your meaning of honesty, trustworthyness and integrity... is it the same that this country was founded on?
Posted by: Lawrence | May 5, 2008 8:09:24 AM
Who wants my 1/2 tank of gas.. i'll pass on the Gas tax holiday
Posted by: Lawrence | May 5, 2008 8:07:05 AM
gee cindy, you just can't let that go I see....but I bet you let the sniper fire go, didn't you?!
And now you support the gas tax holiday that will hurt folks again after the summer is over.
lol her supporters are just as deceitful and dishonest as she is.
Posted by: LA in Indiana | May 5, 2008 7:38:14 AM
nort to mention is her threatening the middle east with nuclear destruction and war breaking out there...how does she think that plays with oil economics?
...about as well as the Iraq qar I would guess. Since it is the same foreign policies...she doesn't improve this country she makes it worse.
Posted by: dl | May 5, 2008 6:58:52 AM
Mike, you are stupid, if you're listening to hillary's pandering bs....
Every election, you vote for a candidate, and when the elections over, voters go stick their heads back in the sand. That is why we get the politicians we have....they depend on you going back to sleep after the election. So then everything goes by the wayside, the bs continues and nothing gets done, you know....tradition.
The "change" Obama is talking about, is the people of this country engaging, and remaining engaged, after all the votes are counted. He's talking about accountability, transparency....all those things we don't have now. And if you think we do, I've got a bridge and a tract of land to sell ya.
bill clinton disgraced our house, but most americans suffering from selective amnesia don't have a problem with allowing him back in the white house for his third term. Besides, he's the one that encouraged her to run for the office, after he was impeached.
I don't know about you, but I don't want a short term fix on the gas problem if it will cause me to pay more in the long term. $30 is just that...$30. It will mean nothing if the oil/gas companies dip back into your pocket to make up for the $30 you got 3 or 4 months prior.
So much for pandering. Tell hillary clinton to be honest and stop with all the lies. Now she's calling all the economists elites, because they don't agree with her pander to voters.
uuugggghhhhh I just wish the liar and the bubba would go away.
Posted by: LA in Indiana | May 5, 2008 6:56:33 AM
Your right Hillary's is worse than John McCain's...because she is actually misleading the country to say that hers would be taken care of by money's she can't use until she both ...would have to win (that would be next year...oh yeah?) and she says that infrastructure funds wouldn't be hurt (because of the moneys she will get next year) with a proposal that may not even get approved next year...never mind as it stands in either of she and Obama's proposals...and that same proposal for windfall profit tax ...she has already used in her plan...
Her plan is another lie to the voters...just to win.
Not to mention all the other issues with plain old economics...the the oil companies will not be able to help the fact that they will re-rise to the old highs quickly (unless she makes a "deal" with them to hold off and what is the return on that deal)
this is slimier than Mccain's, once again ...because she is caught in the middle of a battle so she will dupe all the lower income and less educated voters because her being President is more important than the voters.
This woman is a bull in an emergency room. She is the last thing this country needs.
Posted by: dl | May 5, 2008 6:55:40 AM
HILLARY CLINTON CAN BEST WIN IN NOVEMBER:
It's time for everyone to face the truth. Barack Obama has no real chance of winning the national election in November at this time. His crushing defeat in Pennsylvania makes that fact crystal clear. His best, and only real chance of winning in November is on a ticket with Hillary Clinton as her VP.
Hillary Clinton seemed almost somber at her Pennsylvania victory speech. As if part of her was hoping Obama could have proved he had some chance of winning against the republican attack machine, and their unlimited money, and resources.
But it is absolutely essential that the democrats take back the Whitehouse in November. America, and the American people are in a very desperate condition now. And the whole World has been doing all that they can to help keep us propped up.
Hillary Clinton say's that the heat, and decisions in the Whitehouse are much tougher than the ones on the campaign trail. But I think Mr. Obama faces a test of whether he has what it takes to be a commander and chief by facing the difficult facts, and the truth before him. And by doing what is best for the American people by dropping out of the race, and offering his whole hearted assistance to Hillary Clinton to help her take back the Whitehouse for the American people, and the World.
Mr. Obama is a great speaker. And I am confident he can explain to the American people the need, and wisdom of such a personal sacrifice for them. It should be clear to everyone by now that Hillary Clinton is fighting her heart out for the American people. She has known for a long time that Mr. Obama can not win this November. You have to remember that the Clinton's have won the Whitehouse twice before. They know what it takes.
If Mr. Obama fails his test of commander and chief we can only hope that Hillary Clinton can continue her heroic fight for the American people. And that she prevails. She will need all the continual support and help we can give her. She may fight like a superhuman. But she is only human.
Sen. Hillary Clinton: "You know, more people have now voted for me than have voted for my opponent. In fact, I now have more votes than anybody has ever had in a primary contest for a nomination. And it's also clear that we've got nine more important contests to go."
Sincerely
Jacksmith... Working Class :-)
Posted by: jacksmith | May 5, 2008 5:17:15 AM
Wow ted daddy.
Enjoy your CULT of LIES.
If you want to believe the wizard of Oz and his bald faced lies. Go ahead .
Posted by: tomdavie | May 5, 2008 4:44:54 AM
plain brown.
At first, Obama said it would only net 3/5 of the savings to the consumer as speculators would tweak prices.
So they got 150 obama supporters -I mean 'neutral' economists to say that it wont work.
Well then, why not JACK UP THE TAX then.
Wont that drive the speculation price down?
Then they can give the extra tax back to consumers when they file at the end of the year.
Posted by: tomdavie | May 5, 2008 3:19:33 AM
I don't get this "new" politics business. Politics is what it is. America has had a long political history of many turns for over 200 years. For obama to say he is "new" politics, what does it mean?
He must think we are stupid.
Posted by: Mike | May 5, 2008 2:03:31 AM
obama lies about the facts. then when called on his lie, he doesn't answer that, but just quibbles about the issue. and the fawning media doesn't report that he lied or ask tough follow up questions - they just let his "explanation" go. typical.
and even his quibbling reveals his stupidity - he doesn't "concede" that the two positions are different? one has a windfall profits tax and one doesn't. doesn't take much intelligence to see that the two are different. of course, i never thought obama had much intelligence anyway.
Posted by: so saddened | May 5, 2008 1:23:46 AM
I was a beneficiary of the IL gas tax holiday and it did help! Obama voted for it, and is simply using "distractions" and "lies" as a way to get elected. I voted for him in 2004 and felt it was an informed decision based on the information about him that was available at the time (like Hillary did on the war vote.) I now apologize to America, given the information that is now coming out on how Obama continues to underplay his relationships with Rezko and others. The main point is that the Republicans will use this against him in the GE, and we will lose our chance to elect a moderate Democrat, which is far better than another Republican.
Posted by: IL resident | May 5, 2008 12:50:50 AM
same old washington politics. so much for hope and change. misrepresenting the truth is the same as lying.
Posted by: sonia trevino | May 5, 2008 12:44:04 AM
But, Harley, the fact is Obama and his campaign has never called Hillary a murderer or a racist. They have called her a liar, in not so many words, and the truth is... they're correct.
It's not an ugly smear, it's not a vicious attack, it's simply the truth. Hillary claims the gas tax holiday will work, and it's simply not true, and worse yet, she's smart enough to know better, so it's a lie within a lie.
Calling her on that is his job as her competitor. Plain and simple.
Jake's article is nit-picking a journalistic quote detail, but the bottom line is, the claims the Obama ad makes are true and correct, and the spirit and gist of the article the ad quotes is right on, if not the details.
He's basically misquoted someone, but not misrepresented a thing, and could easily have chosen another quote by the same source that would have better fit the ad and been more accurate.
There, happy?
Posted by: fontapa | May 4, 2008 11:54:44 PM
I thought Obama was suppose to be honest and stand for truth and justice and all that other Superman goody goody bullshit that most of us can see through. He's just another pol that wants to get elected and he thinks that as long as he's not the one calling Hillary a liar, a cheat or a murderer but his campaign is, then he isn't looked at as NEGATIVE. Riiiight. His campaign has called Hillary everything from a liar to a racist and we are suppose to believe him? Not today Barack.
Posted by: Harley. | May 4, 2008 11:48:39 PM
SJ,
Take a deep breath.
First off, it's not a stimulus package, it's a tax credit.
Secondly, the gas tax holiday is never going to happen, per just about everybody but Hillary and McCain. Why? Because it won't work. The news of the tax holiday will not be lost on energy traders and oil companies. I'll spare you the formulas, but basically demand will drive the price up to more than compensate for your supposed savings. Even if we tied their hands (which we can't under current law) the short-term releif in price will simply drive up consumption, and in a few days time the same effect will take place and demand will cause prices to rise again.
Already at this point in our story, we can see this won't work, but lets talk about windfall taxes. So you're Big Oil and you get a windfall tax bill from the IRS. What do you do?
A) Swallow the cost by cutting back in company expenditures like R&D, employee salaries, developement, bonuses, and lobbying, all of which hurt your business.
B) Pass the cost onto shareholders in the form of reduced dividends, causing them to sack you and your management team.
C) Raise gas prices to recoup the cost from consumers. No harm to your business, your shareholders are happy, and if you play it right, you can raise prices a smidge more than neccessary to recoup your costs, and get... ANOTHER WINDFALL!! Happy days are here again...
If you beleive Hillary hasn't been able to think this out and know it for the crock that it is, you're dreaming. She's far too intelligent for that.
You've been had, friend. That's what the media is trying to tell you, that's why they're all over her.
Pandering is a lie or a blatant handout that serves no productive end other than to boost votes. If the gas tax holiday WORKED and it got her votes, it wouldn't be a pander.
The credits Obama's talking about work, do provide releif, and will get him votes, so the media has no need to attack him on them. See how that works?
Posted by: fontapa | May 4, 2008 11:32:52 PM
Poll results just in:
Americans are divided on the gas tax holiday by income: Americans making under $30,000 a year approve of a gas tax “holiday” for the summer, but most Americans making more do not.
If we want relief for the gas taxes and costs give to those earning less than $40,000. Hillary wouldn't propose that because it wouldn't help Walmart fuel their trucks. Lord help me, I didn't think about this until the other day but it helps her cronies in Arkansas too much not to be true.
Posted by: Oscar Meyer | May 4, 2008 11:30:37 PM
Obama says no to the gas tax call is pandering for votes but tonight at the JJ dinner he is saying he is willing to give all $1000 stimulus package, and the night before he was all for spending 10billion in NC.
Is that not pandering? Who is going to pay for this $1000 package not the taxpayer, so he is against getting the oil companies to cover the gas tax for summer but willing to give out money here and there that will cost me more tax dollars?
The MSM really has to dig into this nonsense that Obama is spouting they do it when McCain or Hillary says anything but Obama talks crap and they let it slide, no questions ask as to who is picking up the tab for all this.
Posted by: SJ | May 4, 2008 11:18:16 PM
These Obama supporters are elitist left wing liberals who openly say they want to tax people to make it too expensive to drive.
This is why Republicans have been stomping these limp wristed wusses since 1980 except for Bill Clinton who was too moderate to stomp.
This is just the first of many taxes that Hillary will take off the middle class and shift to the wealthy, a shift that Republicans have been bribed to do for their corporate sponsors throughout the Bush neocon reign.
Keep your eye on the ball. Republicans take away taxes and don't pay for it, borrowing and running up an insurmountable debt for all of us and our future generations.
Obama and his leftists say keep taxing people to control their behavior thee way they want us to behave. That's really beyond socialism even.
Hillary says shift the tax burden from working people to those making record profits. She pays for it with her plan.
What a concept. Our children will thank her even as they curse the neocons 9 trillion dollar debt they have to pay.
Hillary '08
Posted by: rd | May 4, 2008 11:08:58 PM
The ad is not false because Obama does not even buy into the sincerity of Clinton's proposal.
The only thing missing from Paul Krugman's article which everyone else has said is that Bush is not signing a windfall oil profits tax.
Pander
Posted by: Andy E | May 4, 2008 11:04:12 PM
While Hillary talks of fighting:
Quote of the day: "Politics did not lead me to working people. Working people led me to politics."
Barack Obama JJ Dinner May 4, 2008
I was always taught that in an argument that you would like to resolve, you must find areas of agreement.
Posted by: Oscar Meyer | May 4, 2008 11:01:32 PM
Clinton, McCain...... same pander scam, non-starter plan
Posted by: jAYjAY | May 4, 2008 10:58:15 PM
Deception is in the eye of the beholder:
The ABC web unit and television must be completely separate companies. Did anybody else see the national news about Hillary and her commercial that's another Bosnia moment? The short story is that she is blaming Bush for the sale of a company and its sensitive technology called Magnaquench to the Chinese. The trouble is that the Clinton administration approved the sale. The Billeries have said "its Bush's fault because he should have stopped it." In the best ending to a news story Hillary says "I hope the next President remembers Magnaquench." What idiots.
Posted by: Oscar Meyer | May 4, 2008 10:55:06 PM
This plan of hers was so bad, it was dead before it even got started. That's right, what Jake isn't talking about here is how pretty much everyone in Congress but McCain and Clinton are talking about how foolish and incompetent an idea this gas tax holiday is and how such a corrupt and irresponsible bill will never see the light of day.
In short, all of the rest of this debate is moot, because it's already done, and the gas tax holiday is never going to happen.
And Hillary knows it. She's just doing what she always does. She lies to a bunch of voters, and hopes they don't hear the rebuttals and fact checks before voting time. In the short run, it's brilliant, but eventually those voters who go for her are going to hear the truth, and in November she'd pay the price for these lies.
Thank goodness it won't come to that, as in another month, she'll become the historical footnote she was always destined to be.
Posted by: fontapa | May 4, 2008 10:54:23 PM
The ad is hilarious. They play upbeat music to a NEGATIVE and deceptive ad, giving the appearance that it is above the fray. Nope, it's the same old Washington politics and the Obama campaign continues to live in denial.
Posted by: LOM | May 4, 2008 10:50:16 PM
The most interesting thing about this whole ruse is that Clinton refuses to back down or shut up in the face of the obvious facts. Anyone with an ego as big as Hillary "God bless us rich people" Clinton would get very little accomplished as prez because she views all of the rest of us as inferiors, so won't give an inch. Does that really sound like a person who will bring us together?
Posted by: Javalation | May 4, 2008 10:38:01 PM
From factcheck.org:
"For all the legislative prowess of McCain and Clinton, we’re doubtful that either candidate can rewrite the laws of supply and demand. That 18.4 cents per gallon won't go to consumers. Instead, the proposal will simply shift that money from government coffers to the oil companies. We're willing to grant that if the laws of economics themselves took a holiday and the price did drop that much, the amount saved might be meaningful to many motorists, particularly those who are low-income and those who drive a lot. And there would likely be all kinds of ancillary benefits involving price reductions for food and other products that have to be transported, as well as airline tickets and the like.
But we can't find any economists who think we'll actually see that drop in the price of gasoline. Others have tried and failed as well. And the Clinton campaign hasn't produced one, either."
Posted by: El_Pajaro | May 4, 2008 10:27:46 PM
COUNTALLTHEVOTES--Typical RNC/Clinton Misinformation. Sure gas prices dropped when the law was enacted--that was the idea. And for a month everything was fine. But what your noticeably narrow selection of articles does not cover (all within one month of the tax relief) is that gas prices rose after that month and kept rising and when the tax returned, gas prices were higher than before. But you don't know this b/c you don't live in Chicago--like I do--where gas prices are now among the highest in the country, well ahead of even NY and even NJ, who have mandatory full service. Give it up. Stupidity is an almost indefensible position which can only be buttressed by narrow-mindedness and outright lies.
Posted by: Mannewell Darby | May 4, 2008 10:27:06 PM
Tony,
and the consumer will pay the same price or higher. It is a shell game as Obama has said. It is that simple.
Posted by: Thinking | May 4, 2008 10:18:22 PM
WASHINGTON — A majority of American voters say that the furor over the relationship between Senator Barack Obama and his former pastor has not affected their opinion of Mr. Obama, but a substantial number say that it could influence voters this fall should he be the Democratic presidential nominee, according to the latest New York Times/CBS News Poll.
At the same time, an overwhelming majority of voters said candidates calling for the suspension of the federal gasoline tax this summer were acting to help themselves politically, rather than to help ordinary Americans. Mr. Obama’s rival for the Democratic nomination, Senator Hillary Rodham Clinton, has made the suspension of the gas tax a centerpiece of her campaign in recent days.
Posted by: Thinking | May 4, 2008 10:15:43 PM
Thank you, Jake Tapper! Obama campaign is trying false attack against Hillary again! Slandering and twisting facts are all what they can do, because Obama dares not debate Hillary one-on-one even without moderators. Obama's a wimp! He deserves no presidency.
Posted by: Wendy | May 4, 2008 10:10:47 PM
jack
Sen.McCain does not tax oil companies, that means they will make more profit. it is that easy. Se. Clinton will tax oil companies. that is the difference. before you write check the facts
Posted by: tony | May 4, 2008 10:02:37 PM
TO ANYONE WHO SAYS OBAMA DOESN'T HAVE A SOLUTION TO THE GAS TAX ISSUE:
Obama supports windfall profits tax on oil selling at or over $80 per barrel. This means that Obama will attack the problem, not by taking tax dollars away from needed infrastructure projects, but by FORCING the oil companies to sell oil at a reasonable price, or be subject to taxes on their windfall profits, which, once implemented, could then be used to reduce taxes on gasoline or fund other needed projects like bridges, roads, biofuel, etc.
The best part of this approach is that in one simple move, it converts the oil companies from lobbiests in their own interests to lobbiests in OUR interests, because they then have to demand that OPEC countries provide them with oil at affordable prices. Right now, there is no incentive for an oil company to do that. Oil costs goes up at the source (because OPEC won't pump enough), oil companies pass the additional cost to the consumer at the pump.
THAT, my friends, is a real, lasting, significant solution. That shows judgment. That's the difference between someone who is actively thinking about the divide between rich and poor in this country and someone who is pandering for votes.
I found this after 5 minutes of research on Obama's website. What this tells me is that those who say he has no plan either are too lazy to go look it up or are pretending he doesn't have a plan to serve their interests.
Hillary Clinton - I am against your gas tax holiday. I am for Barack Obama's real solution.
Posted by: Patrick | May 4, 2008 10:01:30 PM
Countthevotes
Parse it anyway you like. This example shows that the price went down over night by 8 10 cents over night, well I do not think they are stupid enough to raise the price the same day and it does not tell us how far it should have fallen.
2nd that the price continued to fall was because of an increase of supply, that is as the summer blend became more plentiful the price declined. Again it doesn't tell us if the price fell as much as it should have.
Again like you said it was Republican propaganda.
Posted by: Thinking | May 4, 2008 10:01:16 PM
So what is Obama's plan nothing
Posted by: Bishop | May 4, 2008 9:52:02 PM
Why does Obama keep saying things that are not true and capable of verification?? Read below; the IL 5% fuel tax reduction did benefit people and got good reviews. Complements of the RNC (and I am open to crit. for that):
Obama: "Part of the reason why I know this is because when I was in the
state legislature, there was a bill like this that came up and I voted for
it. And six months later, we decided not to renew it because it wasn't
making any difference in people's lives, it wasn't helping." (Sen. Barack
Obama, Remarks At Campaign Event, Hickory, NC, 4/29/08)
But The Temporary Gas Tax Relief That Obama Voted For In The State
Senate Actually Helped Illinois:
As A State Senator, Obama Voted To Suspend The State Sales Tax On
Gasoline. (S.B. 1310: Senate Third Floor Reading, Passed, 50-0-6, 3/8/00,
Obama Voted Yea)
-- The State Of Illinois Suspended Its Five Percent Sales Tax On Gasoline.
"After a whirlwind legislative session, Gov. Ryan signed
legislation Thursday that suspends the state's 5 percent sales tax
on gasoline. If that is passed on to consumers, fuel prices would drop
by about a dime per gallon." (Dave McKinney and Fran Spielman,
"Ryan Signs Suspension Of Gas Tax," Chicago Sun-Times,
6/30/00)
Gas Prices Suddenly Dropped Between 8 And 10 Cents A Gallon Overnight
When The Tax Suspension Went Into Effect. "When the tax suspension went
into effect July 1, the change in price was obvious, as prices suddenly
dropped between 8 and 10 cents a gallon overnight." (Karen Mellen and Ray
Long, "As Gasoline Prices Drop, Tax Debate Continues," Chicago Tribune,
7/20/00)
During Floor Debate, Then-State Sen. Vince Demuzio (D-Carlinville)
Spoke About How The Temporary Gas Tax Relief Helped Illinois Truckers. Sen.
Demuzio: "[I]llinois' reputation as a high-tax state penalized Illinois'
intrastate truckers who could not travel to the surrounding states to
purchase lower-taxed fuel. The unfair advantage forced Illinois truckers to
compete against out-of-state operations that could afford to charge lower
rates. The sales tax repeal has resulted in a more level playing field for our State's trucking industry." (Sen. Vince Demuzio, State Of Illinois 91st General Assembly Regular Session Senate Transcript, 11/15/00, http://www.ilga.gov,
pp. 46-47)
AAA Attributed Part Of The Decline In Gas Prices To Illinois' Temporary
Suspension Of Its Gas Tax. "The price of gasoline in Illinois dropped 40
cents since its peak this summer, according to the latest survey Wednesday, a record decrease for one month. ... The AAA credited both states [Illinois and Indiana] for temporarily suspending their five percent sales tax on gasoline, and on an increased supply of cleaner-burning reformulated gas."
(Robert McCoppin, "State Gas Prices Set Record One-Month Decline," Chicago
Daily Herald, 7/19/00)
-- AAA Chicago Motor Club's Steve Nolan: "The Temporary Repeal Of The State Gas Tax Has Helped [With Gas Price Drop]..." (Robert Manor, "Illinois Finds Dramatic Relief At Gas Pump," Chicago Tribune, 8/17/00)
The Decline In Gas Prices Was "Aided By The Suspension July 1 [2000] Of
The State's 5 Percent Sales Tax On Gasoline." "State legislators had called
for the hearings as pump prices soared well above $2 a gallon. The recent
decline--aided by the suspension July 1 of the state's 5 percent sales tax
on gasoline--took some of the political expediency out of the hearings."
(Courtney Challos, "Legislators Now Irked Over Falling Gas Prices," Chicago
Tribune, 7/13/00)
Paid for by the Republican National Committee.
Posted by: countallthevotes | May 4, 2008 9:50:05 PM
Four years of a liar for President and I mean Obama if he gets it should be just what it takes to put us all under.Because I have not heard him say one thing he will do other than hope.
Posted by: Bishop | May 4, 2008 9:48:33 PM
It is the same thing no matter how you parse it. The consumer gains nothing. The consumer has to pay at the pump and trhe gas company has to pay the Government. Lower the 18 cents and the gas company raises the 18 cents and pays it to the government.
The Catch? Will the government pass the windfall profit tax, and will it amount to the same revenue? The oil companies will raise the price betting that the windfall profit tax will be forgtotten, not passed or watered down.
Smoke and mirrors and the Obama camp knows it. If itb was such a good idea he would be for it too.
This is absurd
Posted by: Thinking | May 4, 2008 9:15:29 PM
You know, economics is not the issue here. Was the quote fairly used? No. Dan Rather must be chuckling. "Fake, but accurate". Didn't work so well of Dan, though.
Posted by: Buford Gooch | May 4, 2008 9:07:31 PM
Singer may or may not be on key, but he's sure singing from the wrong hymn book.
Clinton's economic policies don't make sense on so many levels, it's difficult to know where to begin. I expect even Krugman is rethinking his previous support for her.
The difference between the McCain and Clinton scheme? Vaporware:
http://www.abcnews.go.com/print?id=4783456
STEPHANOPOULOS: But that's one of the problems here. You've already spent, according to our research, the windfall profits tax on this strategic energy fund for renewable energies and alternative energies.
CLINTON: No, the tax subsidies -- the tax subsidies will go right into that.
Posted by: Tom J | May 4, 2008 9:04:41 PM
Obama tried to get a tax holiday on gas maybe three times but no note of that?
Posted by: dgh | May 4, 2008 9:03:09 PM
Only the Clintons would have the chutzpah to say that Krugman's quote is being misused because, on that particular day, he was critisizing McCain's phony plan to take phony action and didn't get around to critizising Hillary's pretty much identical phony plan to take phony action until a day or two later.
And only a member of the vapid, score-keeping, process-obsessed Beltway media would say Clinton wins this argument.
Posted by: Steve | May 4, 2008 9:00:16 PM
The McClinton plan is a bad one, and no amout of parsing of quotes is gonna change that.
Posted by: Nobodys fool | May 4, 2008 8:58:08 PM
On many occasions I have heard the Obama campaign and Obama criticize the Clinton gas tax holiday as if it is McCain's plan. They know it is different. Anyone who can read can understand the difference. This quote form above is important:
"The Clinton twist is that she proposes paying for the revenue loss with an excess profits tax on oil companies. In one pocket, out the other. So it’s pointless, not evil. But it is pointless, and disappointing."
It is not pointless to take from the very profitable oil companies and put that money in the hands of the ordinary consumers. While this is presented as a temporary assist to citizens, that does not matter. For instance, once per year my state gives relief from sales tax. Does it make a huge difference? No, but it does give some relief and it is very appreciated. Would HIllary's plan have a dramatic effect? No, but people would appreciate it.
Note, Obama has no plan for relief. Yest, he is so quick to criticize, really ridicule, anyone else with.
Obama knows full well that he is misrepresenting the Clinton plan.
Posted by: countallthevotes | May 4, 2008 8:44:29 PM
It's substantively true -- particularly given how the Obama campaign calls it the Clinton-McCain Gas Tax Vacation.
Posted by: Jeff | May 4, 2008 8:42:20 PM
Exactly the same thing call it what you will, she can't get the windfall tax passed anyway. If she could what would stop the oil compamies from raising the cost to cover it?
Again he is corrcet
Posted by: Thinking | May 4, 2008 8:41:02 PM
Okay, let me see if I understand. Substantively the criticism is correct. The so-called tax-holiday would indeed not provide any real benefit to the consumer and would allow the oil companies to simply absorb the 18.4 cent difference. However, you think because the plan in the column which is the same is called the McCain plan, the Obama ad is false?
Spoken/parsed like a true lawyer... errrrr, politician... errrrr, journalist.
You have speared the minnow and lost the whale!
Posted by: plainbrown1 | May 4, 2008 8:37:52 PM
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