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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 | Share | 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
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