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Hoosiers Loved Themelves a Gas Tax Holiday for 120 Days in 2000

May 02, 2008 5:09 PM

As Sens. Hillary Clinton, D-NY, and John McCain, R-Ariz., square off against Sen. Barack Obama, D-Illinois, on a gas tax holiday for the summer -- McCain introduced his legislation in April; Clinton is introducing her bill today; Obama says it's a "gimmick" that offers voters pennies and no long-term solutions -- some Hoosier history may be in order.

Eight years ago, with what were then perceived to be soaring gasoline prices -- more than $2 a gallon for premium gas -- then-Indiana Gov. Frank O'Bannon suspended Indiana's 5 percent sales tax on gas, saving Hoosier motorists between seven and 10 cents per gallon.

"Spiraling gas prices have really caused an undue burden on the people of Indiana," O'Bannon said in June 2000.

O'Bannon used a 1981 statute that enabled him to declare a state of emergency and suspend the tax for up to 60 days. He said he'd reinstate the gas tax before the 60 day period ends if prices went down. If prices continued, he had the option to extended the tax suspension another 60 days.

"Gas prices in the state are causing an undue burden to the people of Indiana," he said. "I consider this an emergency."

Oh -- did I mention O'Bannon was up for re-election?

By July Indiana had the lowest gas prices in the country -- approximately $1.42 per gallon. But O'Bannon said there was no plan to lift the suspension.

"What do we know about next week, will there be a shortage then?" asked an O'Bannon spokeswoman. "We don't know. We're looking at this as a long-term effort."

By August, the suspension had cost the state -- but not consumers -- more than $22 million. O'Bannon renewed the gas tax holiday for another 60 days.

By September, political analyst Charlie Cook had written that "Indiana Momentum is clearly on the side of the Democratic incumbent, Frank O'Bannon, as this much-hyped race moves into its final stages...O'Bannon's decision to suspend the state gas tax for 60 days has resulted in glowing press."

On October 26, 2000, the five percent sales tax resumed.

In November, O'Bannon won.

Indiana GOP chairman Mike McDaniel attributed the gas tax suspension as one of the three reasons the Democrat was re-elected.

Oh -- did I mention that in July 2002, O'Bannon signed into law a 3 cent increase of the state gas tax?

-- jpt

May 2, 2008 | Permalink | User Comments (96 )

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Everyone has forgotten about Health Insurance and the war in Iraq. the big news of the week has been about suspending the gas tax... for the summer . It's called HUSH money and designed to keep you quiet for at least a couple of months. At first I was concerned that perhaps there were a lot of Hillary supporters blogging.... then I remembered Lush Rhimbaugh and his operation..... It seems to me that the Republicans are going out of their way to get Hillary nominated, because they believe she would be the BEST opponent against McCain. That would be great ..... getting to pick your own opponent. That's what they do in wrestling... isn't it ?

Posted by: Ron | May 3, 2008 10:49:49 PM

It is worth noting that the primary in NC and IN and ultimately the election hinge on a bet by two of the candidates that low information voters will believe their preposterous assertions that a "gas tax holiday" will help them pay their fuel bills this summer.
Anyone with a high school level education in economics will tell you a gas tax holiday will actually have the effect of raising gasoline prices. The consumer will simply never see a dime and the oil companies will make even higher profits. Not to mention the fact that it might put as many as 300.000 people out of work when the country is reeling from job losses or drive our debt even higher.

It is simply impossible to even suggest that such a measure could be introduced much less pass through congress before the end of the summer given nobody but McCain and Clinton support it in congress.

We are witnessing an epic and historic clash of old and new politics, one rooted in pander and deception of the past and one with the promise of truth and transparency.

My vote is for Senator Obama

Posted by: Deward Bowles | May 3, 2008 12:15:21 PM

Job losses as a result of the proposed gas tax by J McCain and H Clinton.

http://www.jabberwonk.com/flinker.cfm?cliid=8p6p4

Now you know why the Economists (u know... the people who actually studied this stuff) in college, agree with Obama.

Posted by: Gemma | May 3, 2008 11:22:35 AM

The gas tax holiday that those idiots McCain and Hil are proposing are just ludicrous. If you buy 200 gallons a summer, then you are saving only $40. Say you decide to go on a vacation, as you think you now can. Say you go 2,000 miles on a 35mpg car. Well, there's another $189 spent, balancing out and then going farther than the $40 saved/

Posted by: TheDemocrat | May 3, 2008 8:32:23 AM

Shirley, thanks for reminding us that for truckers - who are hurting worse than anybody - the gas tax holiday would result in a savings of 24.4 cent diesel tax. Plus Clinton has long-term solutions which she can get to work enacting as President.

Posted by: HoosierSue | May 3, 2008 5:50:58 AM

Gas hit $3.70 a gallon here; if I could automatically only pay $3.52 instead, I'd jump at it!

Posted by: HoosierSue | May 3, 2008 5:35:56 AM

I remember this, but there's a big difference between then and now - O'Bannon didn't make up for the lost revenue elsewhere; Clinton will pay for the lost revenue through a windfall profits tax on the oil companies.

Obama has been out-and-out lying on Clinton's position on this. Saying she doesn't pay for it (which he knows she does). Then chides it as the "same old Washington politics" that isn't a real solution, but is rather political pandering. Then promotes his own plan of a windfall profits tax and pursuing alternative fuels. Problem is Clinton has been saying that for weeks as part of her oil plan (plus more).

Obama is a lying low-down loser - and I hope Indiana and North Carolina have sense enough to send him packing back to Rev. Wright. For those interested, Sunday night on "Hannity's America" on Fox, you can learn about Trinity Church's Black Liberation Theology. I thought I knew all about it, but there's one thing I didn't know. It's based on Marxist principles, and guess who's mother was a Marxist? Ding, ding, ding! That's Right! Barack Obama.

Who the h*ll is this guy? And do we really want to take a chance on planting him in the White House?

Posted by: HoosierSue | May 3, 2008 5:33:53 AM

Funny no one actually commented about the Indiana gas holiday in 2000. I remember that little stunt, and at the time hated it because the state wasn't in an emergency; it was flat out political pandering. Gas was under $2/gallon - certainly not an emergency.

You failed to mention that the current Governor, a Republican, requested a ruling from the state Attorney General on whether he could again suspend the tax in 2007. The Attorney General, also a Republican, subsequently ruled that O'Bannon's suspension of the state gas tax was illegal, and didn't meet the criteria of an emergency under the provisions of the gas tax "holiday" law. Therefore the gas tax hasn't been suspended since.

Suspending the gas tax was idiotic in 2000, and it is idiotic in 2008. Rather, put the money into alternative energy right now, we've only been talking about doing this since the 1970s.

Posted by: Indiana Voter | May 3, 2008 1:23:20 AM

Hillary is liar, untrustworthy, divisive and selffish. He is not eligible to become commander-in-chief. She is repeatedly lying about sniper fire, NAFTA and other trade deals, white water and so on. On the other hand, Obama is the great gifted politician who can unite this country. He has the judgement and capacity to lead this country. Obama is a leader of this generation who works for us.
So people, make up your mind, line up behind Obama.

Posted by: Tom | May 3, 2008 12:46:06 AM

America is the "richest" nation in the world and yet we are the only wealthy, industrialized nation that does NOT have a Universal Healthcare Program to take care of ALL of our people(especially the working class).

This is a problem the Hillary Clinton already saw years ago, and has been trying to fix ever since.

It is Hillary Clinton that is the candidate that is focused on helping the people of America by having the GUTS to stand up and say that we MUST have a Universal Healthcare program!

Posted by: Think About It | May 3, 2008 12:32:11 AM

When has this country become so poor that we need to suspend gas tax to give people $30 to buy "schoolbag" or "a good meal" for our children? How low can we go? The most powerful country on the earth? Close your eyes, take a deep breath and think about it. Why do not we ask the UN to send some charity to United States?

Posted by: Denny | May 3, 2008 12:24:30 AM

Fred can we just get on with the issues like the war and the economy. What is your problem. You're focusing on the wrong things, man.

Posted by: moe | May 2, 2008 11:18:01 PM

Wow ! Thanks ! That's 28 dollars average savings over the summer ,that is 1/2 tank of gas " maybe " and saving you 31 cents a day over 90 days ! Meanwhile the prices keep going up to who knows what and nothing at all is done about the obscene profits the oil companies are taking and the price gouging of the American public . It's a ridiculous political ploy to sucker a not too bright public . What's more there is the downside , this 18 cents tax is highway and infrastructure money that will disappear , remember the Minneapolis bridge collapse ? Clinton says we will make up for it taking money from the general fund , translation : borrow more money from China when the national debt is already in the trillions of dollars and the dollar against other currencies is sinking like a rock . Only Obama told us the straight up truth , that this summer holiday tax break is BS and just a political ploy for votes , try and fool the simpleminded , pretend they are actually doing something about the insane gas and diesel prices when in fact they are doing nothing at all and the prices will continue to go up .

Posted by: Ray | May 2, 2008 11:10:04 PM

Obama wants to focus on anything but his own character and judgment. He cannot erase a 20-year relationship with a racist and anti-American pastor who he considered to be his "mentor and spiritual adviser," by merely making a public denunciation required by his falling poll numbers. This transparent gesture won't fool anyone but his most ardent supporters. The press has really let us down regarding Obama by not vetting him sooner. Perhaps they will make up for it by investigating the nature of Obama's religion; black liberation theology. Why? Because anyone who would subscribe to such a racist theology for 20 years, is not fit to be President of the United States. Rev. Wright cites James Cone as his theological mentor regarding the theology Obama has been soaking up for the last 20 years. Here, in his own words, is James Cone's description of Obama's so-called religion:

"Black theology refuses to accept a God who is not identified totally with the goals of the black community. If God is not for us and against white people, then he is a murderer, and we had better kill him. The task of black theology is to kill Gods who do not belong to the black community. Black theology will accept only the love of God which participates in the destruction of the white enemy. What we need is the divine love as expressed in Black Power, which is the power of black people to destroy their oppressors here and now by any means at their disposal. Unless God is participating in this holy activity, we must reject his love."

Posted by: Fred | May 2, 2008 10:44:04 PM

Wow, before Guam gets to vote, let's not forget Washington DC. Did she suggest that also, doubtful. Again, she will say anything to get the nomination. Just more pandering. I am so sick of this. I do hope people wise up to her.

Posted by: lisa | May 2, 2008 10:33:18 PM

Bruce Becker: Hillary did not promise Guam that she could arrange for them to vote in national elections right now. She said that she wholly supported the idea. Here, from a newspaper article in Guam:

This past week, Hillary Clinton was interviewed by local media. Throughout these interviews regarding Guam issues, I was more impressed with Clinton and found her more experienced and prepared to be the president than any other candidate.

When asked about Guam's people being allowed to vote for U.S. president, Clinton without hesitation gave her full support for all Americans on Guam to vote. The courage that the women's suffrage movement showed no doubt shines brightly through her and her dedication to the right for the people of Guam to vote.

Clinton has always taken a stand for Guam and continues to show all of us support. Clinton is the first to commit her support to fight for Guam's war reparations, and the first to commit her support to lift the Medicaid cap for Guam.

Clinton is also the first candidate to propose a real universal health coverage for all Americans including Guam. Imagine health coverage for you and your family where insurance companies cannot deny you because of your pre-existing condition. Imagine tax credits given for you or your business so you can afford health coverage for you and your employees. Under her plan, the health coverage would be affordable, available, reliable and good for Guam.

Posted by: Fred | May 2, 2008 10:26:59 PM

and in the end....is where it cost them. quick fix pandering from two shameless, one pair of matching BUSH clones, Hillary McCain and John Clinton, similar all hours in a day. they walk alike, they talk alike, at times, they even say Burson Marsteller alike. you can lose your thirty dimes. when republicans...are two of a kind!!!!

Posted by: kravitz | May 2, 2008 10:20:25 PM

The Start Truth, Obama is not cunning nor dangerous. You are just afraid because he dares to be different. If I were Obama and someone asked me about not wearing the flag pin.....I would respond, show me a pin that wasn't made in China and I'll wear it. None of them really wear a flag pin so why would you pick on Obama for that. And sorry but I am bitter. This economy is killing me. I for one want change in Washington. I am tired of the Bush and Clintons running this country. They are the same old politics, enough. Hillary will do and say anything to get elected. It's not about us, it's about the Clinton legacy. It's time to move forward. We need a new direction.

Posted by: lisa | May 2, 2008 10:15:58 PM

ITS THE DOLLAR STUPID...OIL IS NOT THE PROBLEM..OIL IS PEGGED TO THE DOLLAR..OUR DOLLAR IS WORTHLESS THANKS TO BUSH..THE 3 TRILLION BUSH ADDED TO THE NATIONAL DEBT..IS WEAKING OUR DOLLAR AND HE WANTS 70 BILLION MORE..THE INTREST RATE FELL AGAIN LOWER INTREST RATES WEAKER DOLLAR..

Posted by: TOM | May 2, 2008 10:14:24 PM

Here's an idea, Raise the average mileage of cars.
The Bush Congress set the average at 30 MPH for 2012. That is lame.
If we have an average of 40, we wouldnt be having this consideration about gas prices, because there would be a glut of oil on the market, and prices would fall.
Bush gave a tax write off of $15K to any small businesses who would buy an SUV after 9-11. That really helps NOW doesnt it? The answer is not ending the tax to repair roads. The answer is to stop allowing gas-guzzlers to be sold in this country. The macho marketing machine sells cars with 400 hp. If the companies had to meet the 40 MPG average, the marketing guys would have to come up with another pitch besides selling 440 HP sex.
How about safety and economy?

Posted by: bruce becker | May 2, 2008 10:06:18 PM

Washington DC doesnt get to vote in the general elections, but today Clinton promised the island of Guam that they would get to vote in the general if they vote for her tomorrow and she is elected. She will say ANYTHING to get elected, and wont deliver on any of it. It is never going to happen that a territory gets the vote ahead of Washington DC.

Posted by: bruce becker | May 2, 2008 9:59:56 PM

Clinton is all talk. She told Guam today that she will get them the right to vote in the general election if they elect her.
How, exactly? They are not a state.

And how, exactly, would she pass a tax on oil companies to make up for the rise in prices after she cuts the gas tax? It wont happen.

She is full of empty promises.

Posted by: bruce becker | May 2, 2008 9:57:49 PM

Obama is a cunning and terrifyingly dangerous politician.

Barack says he won't throw his pastor under the bus like he did his grandmother, and then he did.

Barack says he's against the war but NEVER ACTUALLY VOTED AGAINST IT because he wasn't in office then. And then he VOTED YES TO FUND THE WAR.

Barack says he won't wear "that pin" on his clothing but then he is trying to say that he stands for it (when really he wants to switch it to something else).

Barack says he wants to be the #1 patriot in America and yet when the National Anthem is played, he doesn't put his hand on his heart(as if the song doesn't apply to him) - must be because it is the song of the "old ways" of America(which he wishes to destroy), the ways that hundreds of thousands have died for along the way.

Barack boils up some cursing and completely politically-reactive racial speech, tries to make us all feel deficient, says Don Imus should be burned at the stake and flushed in a toilet, and then turns around and says "Race is not a problem in America"(because that would trick people into thinking he doesn't hate).

Barack says he's a uniter but then devotes 20 years of his life to his "Mentor" and "Role Model" that has burned the very hate of America into his heart - see this video: search google with the key term:
obama shocking audio
( also see more great stuff at: thatsmeontheleft.blogspot.com )

Barack says all people should count and "yes we can" but then he purposely, and cold-bloodedly stone-walls any chance of allowing 2+ MILLION voters in Florida and Michigan have their vote count.

Barack says he's about "helping the working class live better lives" and then he turns around and slanders us not only by calling us "bitter" and "clinging to guns and religion", but also forgoes offering a Universal Healthcare Plan(which is a core democratic value) - this is only so he can play both sides of the poor/rich fence, but in the end he leans more towards the former(with his ridiculous idea to raise capital gains taxes).

Barack says he has all these ideas for how he's going to throw our government out of their offices onto the street but there's no detailed information available for people to weigh his intentions with common sense.

Everything is about timing for Mr. Barack Obama, he plays "old style" politics better than a symphonic orchestra, he'll switch from one major idea and then to the reverse like a windsock in an open field.

How long will it be before Barack throws the "American People"(as if we're somebody else) under the bus, and then back up for another go.

Think long and hard, this man is playing the emotion card on America, and he intends to rip our heart out with it to pay back for his Pastor's pain of yesteryear.

If you vote for Barack Obama, you will experience change alright, and it will hurt, like a dull blade being forced into your back.
If you vote for Barack Obama, you will experience the Apocalypse of America.

Posted by: The Stark Truth | May 2, 2008 9:56:18 PM

What does it mean to practise the virtues in politics? It is, quite simply, engaging in practices for the common good in the public sphere. It does not rely on a virtuous leader to look up to, or that fights for you, but one who like Obama, by engaging in these practices, helps unleash an equal creative capacity in others.

Hope and courage are more than crucial republican virtues: they are the very engine that encourages others to join a common endeavour that can take on powerful opponents. And this dynamic creates a great deal more than particular benefits for individual citizens. It recognises that they themselves possess the ultimate liberty: the political liberty of designing their common future. Is it any wonder Obama is so wildly appreciated by the powerless, by people across parties, and especially by the younger generation of Americans?

Another attribute of republicanism is that once this common process is initiated, creative answers to obstacles do not emerge only from the strategy room at the top of the campaign but also from a much larger arena of action, where organised structures at every level constantly produce new solutions. This prevents the only-my-ideas mistakes that permeate the Bush office.

Posted by: bruce becker | May 2, 2008 9:55:31 PM

OK who is telling the truth here Kantor or the guy who made the movie? Two different stories -----

Kantor today told the Huffington Post that he "was talking about the polling and not the people." The film’s director, D.A. Pennebaker, said in an interview with the Politico that, "he says they must be s—ing in the White House."

Posted by: Oscar Meyer | May 2, 2008 9:18:56 PM

KevinJ, why blame liberals for this economy. You can thank George Bush for that.

Posted by: erin | May 2, 2008 8:58:14 PM

Great work Jake. Hope you do well in your career at ABC News. It's time the media starts reporting all news rather than just the liberal spin.

When liberals drive the price of everything up, it hurts the poor the most (e.g. no oil production in the U.S., not using nuclear power as France does, over-regulating, pandering to unions, being funded by trial attorneys, and on and on).

Posted by: Kevin J | May 2, 2008 8:52:20 PM

With a tax break like that, thousands of trucks will save money on tens of thousands of gallons of gas, when carrying daily necessary goods to stores. It sure will also help lower the consumer goods prices a bit. Not just 30$ for car owners. Just a thought.


Posted by: Optimist | May 2, 2008 8:48:30 PM

Is my vote worth 30 dollars? oh my i forgot i am supposed to be stupid.

Posted by: sacks | May 2, 2008 8:46:25 PM

give me your vote and i will give you 30 dollars worth of gasoline. Do not forget though your 30 dollars for 3 months will make a father/mother/daughter/son loose a job, foreclosure, loose mediacl and above all you will pay it back later twice.

Posted by: sacks | May 2, 2008 8:44:23 PM

Here's an idea. RAISE the federal gas tax and rebate the extra tax revenues to vehicle owners in equal amounts. (Perhaps truckers should get larger checks than car owners.) The higher pump price will encourage us to finally wean ourselves from foreign oil supplied by thugs like
Chavez in Venezuela and the Saudi princes. The rebate checks will help motorists to pay the higher pump price. Those who drive high mileage vehicles and/or limit their annual miles driven will GAIN in disposable income.

Posted by: Richard from NH | May 2, 2008 8:43:54 PM

With a tax break like that, thousands of trucks will save money on tens of thousands of gallons of gas, when carrying daily necessary goods to stores. It sure will also help lower the consumer goods prices a bit. Not just 30$ for car owners. Just a thought.

Posted by: Optimist | May 2, 2008 8:42:43 PM

These are not just our opinions these are the facts. Read the paper listen to the news and the economists. It would hurt the country. Most of us are hurting because of the economy thanks to George Bush. But the gas tax is a bad idea. It's Hillary's way of getting you to vote for her. Plus there is no guarantee the we would even see any savings. So what would the point be. It's all pandering. Hillary should be ashamed of herself for doing this.

Posted by: lisa | May 2, 2008 8:34:03 PM

Thank you Justin. Too bad no one actually reads the posts that are truthful. Or maybe they do but they just don't get it. They have no idea how it would affect the country. They just want a reason to call Obama an elitist

Posted by: lisa | May 2, 2008 8:23:25 PM

Obama pack your suitcase and go home to your children.... they need you more than we need you. Hilliary 08!!

Posted by: Diane | May 2, 2008 8:20:00 PM

Amazing! How can Clinton take advantage of the blue color workers by playing with illitracy? If you take the tax a way, steel workers, road maintanance workers,etc will be laid off. Because we can not build bridges, our roads will become a disaster meaning we will spend more to repair them than it would to maintain. However, i think Mrs Clinton is confused. Do we need a Clinton or Bush family to run this country for 1/2 a century?

Posted by: sacks | May 2, 2008 8:19:01 PM

Now we see chiming in from people who didn't get the point of the article. The 2000 gas tax holiday was shameless pandering that ended up costing people more in the long run. Worse yet, the Clinton-McCain proposal is a production tax, not a sales tax. Most of the savings on a production tax won't get passed on to consumers even during the holiday period. There's just no incentive for the oil companies to further spike demand. Instead they'll eat the profits and smile.

Then we have Obama's votes for the gas _sales_ tax holiday in Illinois, which he actually refers to in his stump speech. Of course, the important point is that he's seen the real impact of a gas tax holiday in Illinois. That's why he knows it's a bad idea that will hurt people in the long run. Clinton apparently lack similar experience in her eight years of elected service.

Finally, there's no way that Clinton could get a tax holiday bill through Congress this summer, if ever. Honestly, this is the most disgusting display of panderring yet this election season.

Posted by: Justin | May 2, 2008 8:17:41 PM

OBAMA HAS BEEN CAUGHT AGAIN IN HIS DECEPTIVE POLITICAL ADS: Fact Check: Obama and the gas taxes. SPRINGFIELD, Ill. (AP) — Democratic Sen. Barack Obama accuses his presidential rivals of pandering to voters by supporting the "gimmick" of temporarily lifting federal taxes on gasoline, despite his own past support for a similar tax holiday. As a state legislator voting for a tax break, Obama even joked that he wanted signs on gas pumps telling motorists that he was responsible for lowering prices. Most experts criticize the idea of a federal tax suspension, but Obama's political opponents accuse him of flip-flopping and ignoring the financial pain caused by today's rising gas prices. THE FACTS: In 2000, gasoline prices were climbing quickly, reaching $2 a gallon in the Chicago area — a remarkable price back then. Illinois legislators scrambled to offer some election-year relief to angry motorists. Obama voted three times for a tax holiday. The version that ended up becoming law required a six-month suspension of the state's share of the sales tax on gasoline, a 5 percent tax paid directly by consumers rather than gas stations. It also required gas stations to post signs on their pumps saying that the Illinois General Assembly had lowered taxes and the price should reflect that cut.

Posted by: Fred | May 2, 2008 7:57:15 PM

Now the label latte liberal is appropriated with Obama and his supporter. They are willing to shell out millions to help end the world hunger, but not willing to shell out couple dollars to make the avg Joe feel a little better.
Like it or not, this is the perception of avg American. Sorry to say, but this time the Obama camp is lost. They may be right as an economist, but for a politican, it is a lost.
Regardless of the benefit/ cost of the proposal the average people want a president who care about their daily struggle. Whoever said is pandering to the voter is bad is just not wise enough politically.

Posted by: maleasiansomker | May 2, 2008 7:49:10 PM

It would get me to work for three weeks. That may not seem like much to an elitist but to most people it would be a big help.

Posted by: Tina from Florida | May 2, 2008 7:46:06 PM

for you clinton supporters, and I respect you, I just don't support your candidates position on this issue, her is Clinton on this issue a few years ago when she was a Senate candidate:
Clinton, meanwhile, lashed out at [the] plan to repeal 4.3 cents of the gas tax, calling it “a bad deal for New York and a potential bonanza for the oil companies …

“[O]ne of my fundamental disagreements during this campaign with my opponent was when he called for the repeal of the gas tax. Now, the gas tax is one of those few taxes that New York actually gets more money from Washington than we send. And we are totally reliant on it to do things like finishing I-86 in the Southern Tier, or the fast- ferry harbor works up in Rochester, as well as the work we need to do here in the city. So you can count on me to support infrastructure.” As you can see from her argument, the tax money goes to support building and repair that put people to work. This is not the type of thing we should suspend.

Posted by: Dave | May 2, 2008 7:35:48 PM

obama cant drive
if he turns his head he gets dizzy

Posted by: hhkeller | May 2, 2008 7:34:57 PM

Thanks Dave for being so sane...

Here is an excerpt from the AP article you linked to for Carrol's (and other Hillary and McCain fans) benefit:

"Obama's rivals have attacked him for not supporting the gas-tax relief — but he might have some insight into this issue that the others do not. Back in 2000 when Obama was in the Illinois Senate, he supported suspending gas taxes in his home state, a moratorium that didn't turn out to be much of an economic boon at all."

Again we need someone that will finally tell us the truth for our President.

Mr. Obama for President!

Posted by: TedDaddy | May 2, 2008 7:28:07 PM

"It will do no harm and it may help a few low income families over the short term. There is no downside to a tax break, even if the relief is only temporary." This is simply wrong. It will stop highway improvement projects and put thousands of people out of work all across the country. Plus, the tax break will just be consumed by oil companies that will raise the price of gas. These is just a stupid idea. I prefer the Obama $1,000 tax break. Helps out more, does no damage. Voters are like large mouth bass; we just jump at anything flashy trolled in front of us. We need to think more.

Posted by: Dave | May 2, 2008 7:25:01 PM

What makes those of you that support the tax holiday think the oil companies will not just raise their prices to cut into the savings? And it does hurt the states. This from the AP: "A study by the National Bureau of Economic Research of the short-term tax breaks in Illinois, and Indiana during the same period, found that gas prices — which were around $2 a gallon then — fell by an average of 3 percent, not the full 5 percent of the tax cut. That means about two-thirds of the tax holiday was passed along to consumers.

The relief was short-lived. After the moratorium ended, prices rose 4 percent. And the tax cut cost Illinois an estimated $157 million in funds and $46 million was lost from Indiana, according to the study."
http://ap.google.com/article/ALeqM5gca54s0LCP-1CIz0sSK5QWjOCzbgD90DKAK80

Posted by: dave | May 2, 2008 7:19:32 PM

Shirley, I do feel for the truckers here. This is something the current administration should address right away. I would even favor the regulation of Diesel prices for truckers to keep our truckers and goods moving.

However, this pandering that McCain and Hillary are doing (knowing full well it won't happen this summer) is just what it is -pandering...

Let's get a president with vision for once, not a trip back to the 1990's.

Mr. Obama for President!

Posted by: TedDaddy | May 2, 2008 7:17:08 PM

Yes Carol, That is one of the reasons he knows it won't work!

Posted by: TedDaddy | May 2, 2008 7:10:27 PM

Gee the Republicans gave us a tax break years ago, Has it saved our jobs. Why are things so bad to day?

This is a Nation that needs to be run for the next few hundered years. Our dollar has already tanked, oil is sky high, we are still fighting a war of choice, our men are still dying and be wounded daily, and all Hullary can think of is a Gas Tax Holliday that was first anounced by McCain.

Up and down vote on a gas holiday, my foot. How about a vote to get us out of Iraq?

Far reaching vision.

Same Old Same Old

Posted by: THinking | May 2, 2008 6:53:14 PM

People who say a tax holiday would cost thousands of jobs really do need to stop listening to the talking points of spin doctors.

It's just plain goofy!

Sort of like saying that, if one listened to Reverend Wright's entire sermon, they're realize he wasn't a racist. Hmm -- where are those people hiding today?

But, I guess some people like the taste of spin. Go figure!

Posted by: T | May 2, 2008 6:48:34 PM

This tax break could cost hundreds of thousand jobs nationwide to be lost. Is that really worth a $30 savings. Please do the research.

Posted by: lisa | May 2, 2008 6:34:00 PM

Does anyone know what Mr. Obama suggested in lieu of the tax break?

Posted by: texasdemocrat | May 2, 2008 6:30:32 PM

We are a trucking family and we pay 24.5% fuel tax. It is shutting down a lot of truckers! A few months of a tax holiday would help truckers from losing there trucks and there homes. The price of an oil change is over $200. So all you that are opposed to the tax holiday, I hope you have to pay up the butt. Just remember everything yes, everything is handled by a trucker. Give them a break!! How would you like to pay $800.-1,000 for a tank of diesel!!

Posted by: Shirley | May 2, 2008 6:29:34 PM

>>>It will do no harm and it may help a few low income families over the short term. There is no downside to a tax break, even if the relief is only temporary.

Exactly!! but the House, led by Pelosi who supports Obama - killed it.
When McCain first mentioned it, the buzz was - it was a great idea.
But after Hillary offered a similar and better plan - it was poopoo'd.

But of course we know the DC establishment and elites support Obama.

Posted by: JoseyJ | May 2, 2008 6:24:48 PM

A

I think your argument sounds very confused. How can you be the most liebral politiciana nd refuse to give money to poor folks? Isn't that contradictory? I thought liberalism meant wanting to take from the rich and give to the poor?

Posted by: Kevin | May 2, 2008 6:24:44 PM

T

What facts are you refering to?

Posted by: Kevin | May 2, 2008 6:19:42 PM

tony

How did it work in Indiana? Thousands of folks lost their job. How did it work? Was it worth the offset?

Posted by: Kevin | May 2, 2008 6:18:17 PM

Again, gas price will keep increase with or without gas tax holiday...

The cause for gas price increase is NOT due to the US domestic demanding from traveling...

The cause for gas price increase is due to global high demand for oil on both industrial and consumer usage and uncertainty of global economy....

Americans are the victim because they can't live without gas....

Why can't they get some relief especially during hot traveling season?

The slight increase of gas consume for car travel won't affect overal oil supply and demand....

Some people are afraid because they don't know why the oil price keeps increase....

Posted by: True Truth | May 2, 2008 6:15:13 PM

dorrett

Ummm, my dear, i am AGAINST the gas tax holiday. Maybe you should read my post first before criticizing.

Posted by: Kevin | May 2, 2008 6:12:24 PM

Kevin - apparently it did not fail in Indiana. I don't like the idea, but you cannot distort the record. It might work in a discrete setting like one state.

Posted by: tony | May 2, 2008 6:11:56 PM

attn: Kevin

You're throwing a lot of baseless assertions around. Facts do not support your argument!

Every penny counts. A lesson most politicians cannot comprehend.

Posted by: T | May 2, 2008 6:10:36 PM

OBAMA -- IS THE MOST LIBERAL MEMBER OF CONGRESS!

His policies will not only cost citizens a ton of money, he's reluctant to even give them pocket change when he has a chance.

Remember this citizens. You'll be poorer and no wiser with this character.

Posted by: A | May 2, 2008 6:07:38 PM

OKAY, let's try this again for idiots:

When you suspend the taxes and try to pass it on to ol companies, oil companies turn around and pass it back to consumers. It's turns out to be an exercise of a dog chasing his own tail. It is bad policy. It has HISTORICALLY beenbad policy. It has been tried before, and in EVERY case, it failed. Hillary is a con artist. A liar and a con artist.

Posted by: Kevin | May 2, 2008 6:05:03 PM

Clinton or McCain 2008 !!!!!!!!!!!

American doesn't want you OBAMA,you are a danger to us........

You would never be my president and i would never refer to you as president .......

Posted by: keith1212 | May 2, 2008 6:04:48 PM

Yes ! It 's a political pander , but no more or no less than homeowner bail out, stimulus package. Each has it own side effects.
Take the homeowner bail out package on the work in Congress, how does it solve any problems ? Are you honestly believe that the majority of the subprime homeowners have been cheat/ lie to sign into a loan that the are unable to affort? They sign on because they believe that housing price will keep go up. What will happened when the next time it happened if government bail them out now ? They will gamble more because they get used to the idea the gov. will bail them out.
Same with the stimulus package ? Where is the sense of old wisdom ( saving it for the rainy day ? ) We spend, spend, then borrow more to spend.
Don't get me wrong, I support all these, because I feel that a lot of people get hurt. We need to change their attitude, but should not abandon them when they are hurting.
It's just like a doctor to order pain medicine, when patient hurt. It's will do nothing to help, but still it help the patient to get through tough time.
When the paint subside, or patient is able to cope with it then we can start treat the desease.
It may not any different to the economist, bankers, the college educated with high income, but it will make a small different to average Joe.


Posted by: Maleasiansomker | May 2, 2008 6:03:54 PM

Kevin

Obama is sinking like a rock. People are noticing his ideas about how government should interact with the people is both naive and myopic. That includes his flip-flop on the gas holiday.

Shape-shifter?

Posted by: A | May 2, 2008 6:03:19 PM

Kevin and Bishop both of you are so narrow-minded. This tax break will not help low-income family. Do you call couple of pennies a day help, when our bridges are left to collapse and the air is polluted because some folks believe that they are getting the gas cheaper. Mark my words if this bill is passed watch what will happen during the summer when demand outpaces supply. The price will increase, this is ABC of economics. Obama has the courage to tell us the truth. He is a Leader and McCain and Hillary are politicians.

Posted by: dorrett | May 2, 2008 5:58:56 PM

Becky

Actually i think a majority of Americans see through the Clinton/McCain pander. Honestly i haven't met a single person that thinks it is a good idea. I have no clue why Clinton thought this was a good idea. She must have some polling that tells her it helps with illiterates, but i don't think even blue collar folks are this dumb.

Posted by: Kevin | May 2, 2008 5:58:53 PM

Hillary is a disgrace. She will tell you anything to get elected. Unfortunately some people will fall for it. Obama is telling us like it is even though he may lose votes for it. This is the type of change we need. No more pandering.

Posted by: lisa | May 2, 2008 5:58:23 PM

You see, Obama supporters are just loving the thought of all the taxes he wants them to pay. Research Global Poverty Act. It will make so many Obama supporters happy to know their guy wants the UN to be able to tax us, too. How about tax releif for everybody but the Obama people? Now that's a plan.

Posted by: Kitty | May 2, 2008 5:56:44 PM

The gas price will keeping increase with or without gas tax holiday just like what is happening now...

The gas for driving is just a small portion of overall oil supply... The gas tax relief on consumer side won't affect the overall oil demanding...

Besides, after summer season, the long distance driving due to vacation season will be dramatically reduced and the demand increase due to travel will be decrease to normal level....

The gas price increase is not due to the consumer traveling demanding, it is due to the uncertainty of the entire of world economy and high demanding from Asian developing countries.....

Posted by: True Truth | May 2, 2008 5:56:08 PM

Turku Wren

Yes, Obama voted for it in Illinois and that's exactly why he is against it NOW. He saw then that it DIDN"T work. It NEVER works. The definition of insanity is to keep doing the same thing overa nd over and expecting a different result. It is not too much to ask our politicians to learn from their mistakes.

Posted by: Kevin | May 2, 2008 5:56:04 PM

It amazes me how you guys all think Obama is wrong about this gas tax but every expert and beyond says he is the only one that has it right.

Posted by: Becky | May 2, 2008 5:55:23 PM

Obama (aka Soetoro) was for the gas holiday before he was against it.

Shades of Kerry!


Posted by: A | May 2, 2008 5:53:51 PM

KDH55 / Turku Wren:

Obama voted for a tax holiday ONCE (not three times) as an Illinois state senator.

What he saw was that the tax break was gobbled up by the oil companies and the gas station owners, as they just raised their prices.

As a result, he concluded that the tax holiday idea wouldn't work. Now, he opposes it.

Imagine that - a leader who learns from previous errors, and doesn't repeat them.

Contrast this with Clinton, who didn't learn from trying to fight Congress on "Hillarycare", and is now trying to fight Congress on a gas tax holiday that has not seen A SINGLE ECONOMIST, regardless of political affiliation, support it.

Posted by: BMR, Pittsburgh PA | May 2, 2008 5:53:46 PM

Anybody that doesn't see through this political gimmick needs to have their head examined, for real. This issue crystalizes the difference between Obama and Clinton (old world politics vs. new politicss). Is it too much to ask our politicians to give it to us straight? This argument, if Obama plays it well, allows him to transition back, gently, to the middle. What do we have here? A Communist country? Punish the rich to feed the poor? I am Liberal, but am against this. What Clinton is doing is like giving a hungry man one single fish for the entire winter when you could give him a boat and teach him how to fish. This is madness. We are not beggars lining some dusty street in Africa. We are Americans goddamnit.