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Dems Draw Distinctions on Gas Tax Plans

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April 29, 2008 4:34 PM

ABC News' Sunlen Miller and Eloise Harper Report: The Democratic presidential contenders traded jabs on the campaign trail Tuesday regarding their varying positions on a gas tax holiday.

From a Winston Salem, NC town hall meeting, Senator Barack Obama painted Sens. John McCain and Hillary Clinton as supporting the tax plan for purely political reasons.

"This isn't an idea designed to get you through the summer, it's designed to get them through an election," Obama said of the proposal which he does not support.  "The easiest thing in the world for a politician to do is to tell you what they think you want to hear. But if we're gonna solve our challenges right now, then we've gotta start telling the American people what they need to hear. Tell 'em the truth."

Obama said McCain and Clinton's support of the gas tax illustrates the problem with Washington.

"Oil companies like Shell and BP just reported record profits for the quarter. And we're arguing over a gimmick to save you half a tank of gas over the course of the entire summer so that everyone in Washington can pat themselves on the back and say that they did something."

But, a spokesman from the McCain campaign, Tucker Bounds, fired back at Obama, charging that the Illinois Senator doesn't fully grasp the current state of the U.S. economy.

“Barack Obama doesn’t understand the effect of high gas prices on the American economy," Bounds said in a paper statement.  "Senator Obama voted for a gas tax reduction before he opposed it, he has no plan for relief from record-high gas prices for Americans this summer, and he’s the empty-tank candidate in this race.”

Obama went on to say that some economists believe that the gas tax holiday will actually raise gas prices because people will start using more gas and demand will then go up.  He added that without a plan to pay for it, the money would come out of the Highway Trust Fund, and there's no telling if gas companies would pass the savings on to consumers.

"So you end up giving them more money and we've drained the highway trust fund," he said.

Clinton also raised the issue of increasing gas prices today, from a wood veneer factory in Indianapolis, IN.

"The oil companies keep making out like bandits, you know they have had the highest profits in the history of the world," she said after a tour of the facility.  "My gas price agenda is a jobs agenda. I have traveled all over Indiana and I have said my campaign is about jobs, jobs, jobs and jobs. Without good jobs everything else we are talking about is just not going to happen."

Clinton continued, "There are a lot of people in Indiana who would really benefit from a gas tax holiday, you know that may not mean much to my opponent but it means a lot to people who are struggling here, you know people who commute long distances to work farmers and truckers who are in the business of driving."

Clinton then knocked McCain's economic plan saying, "He wants a gas tax holiday but he won't pay for it. I don't think that's responsible.  His plan would slash the funds and the jobs that would go into repairing and keeping up our roads our bridges and our other highway interests."

"Senator Obama won't provide relief while Senator McCain wont pay for it," Clinton finished, adding, "I'm the only candidate who will provide immediate relief at the pump with a plan to make it happen turning talk into action."

Clinton went on to give several more details about her gas tax plan, explaining that it includes "lowering gas prices by temporarily suspending the gas tax for consumers and businesses. We will pay for it by proposing a windfall profits tax on the big oil companies --  they sure can afford it."

The former First Lady sought to draw a distinction from her position and that of Obama's saying, "This is a big difference in this race. My opponent opposes giving consumers a break from the gas tax, but I believe American people are being squeezed pretty hard by everything happening, the housing crisis, the health care cost and now of course this increase in gas costs."

Obama has still not commented on his support in the Illinois State Senate of the suspension of the 5 % state sales tax on gas in 2000.  But, today during his Winston Salem stop, he tried to reach out to people struggling to pay gas bills, saying just because he's a presidential candidate doesn't mean that he doesn't remember the feeling.

"It hasn't been that long since I filled up my own gas tank. And  you know, Secret Service now has taken over, but I know what it's like to fill up a gas tank and get sticker shock."

At a later event in Hickory, North Carolina, Obama, for the first time, attempted a short explanation for his support of a 5% state sales tax suspension while in the Illinois state senate in 2000.

"When I was in the state legislature," Obama told the crowd, "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."

April 29, 2008 in Bush, George W., Hunter, Duncan, Kucinich, Dennis | Permalink | User Comments (35)

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If nothing else Obama knows it won't mean much at the pump. The key is to reduce demand. Take the $65MM we are spending on the strategic oil reserve daily and build 6500 cars a day that don't run on gasoline or diesel. Electric, fuelcell or compressed air. This would put people to work in manufacturing jobs that have shut down across the country. Give away or trade these cars for primary vehicles for tax payers making less than $75k a year. that is an impact that can be felt by consumers, and will reduce the consumption of oil to reduce the price, stimulate the economy and strengthen the dollar. Not to mention helping out the environment. 2MM cars a year for 5 years, mandate zero emissions for all non-commercial vehicles and then turn it over to private industry.

Posted by: Louis | Apr 29, 2008 4:42:44 PM

"The easiest thing in the world for a politician to do is to tell you what they think you want to hear."

He would know, he's the absolute master of this!!!

Posted by: Of course | Apr 29, 2008 4:52:09 PM

Observation 3: At this point, the more speeches BO gives on the same topics, the more troubles he is in and the more voters he loses.

Posted by: lazy | Apr 29, 2008 4:52:23 PM

It is true that Senator Obama supported a temporary suspension of the state tax on gasoline. The tax was later reinstated after it was shown that the consumer actually received only 3/5s of the savings from suspension of the tax.

What you fail to mention is that Senator Clinton did not support a suspension of the state gas tax in NY a couple of years ago, now she does.

Some say Senator Obama has no experience. My vote is for him.

Posted by: Deward Bowles | Apr 29, 2008 5:00:14 PM

That's a whopping $30 per vehicle for 14 months of driving.

Based on Hillary's comments in 2000. The fines on the oil companies will result in them reducing drilling, which will cost us $1000/year for every vehicle.

Posted by: Debbie | Apr 29, 2008 5:04:45 PM

I think if the tax holliday saves the people even a NICKEL its worth it.

The alternative is to merely NOT have it?

give Mc Cain and Clinton credit for doing SOMETHING to help the suffering , even if its not much for the average guy.

It means a LOT to truckers , taxis' and other transport people .

Obama does NOTHING -and MOCKS even this small good gesture? It would mean a lot more if he had a BETTER alternative to immediately help these people.

He doesnt. Just rhetoric.

Posted by: tomdavie | Apr 29, 2008 5:11:55 PM

I find it hilarious that the mind numbing obama people MOCK Clinton and Mc Cain for doing somehting. Even if its half baked for the average joe.

But Obama does NOTHING.

Then again, this is the story of Obamas whole campaign.

Point the finger at the other guys record , while he has NO RECORD AT ALL.

We aint buying it anymore. The RHETORIC honeymoon for Obama is over.

Posted by: tomdavie | Apr 29, 2008 5:14:43 PM

how is going to help truckers and other transport businesses when the roads are closed or impassable? You would save more over the same period of time by combining trips, checking your tire pressure, carpooling once a week and not speeding.

Posted by: Louis | Apr 29, 2008 5:15:06 PM

Man, BO supporters are rich, educated. Of course, 18c mean nothing to them. What do Louis and the BO fans know about working class, bitter bunch, caring for 18c less per gallon? In his, and their minds they cling to guns.

Posted by: Olbermann3 | Apr 29, 2008 5:25:03 PM

You don't get to keep that 18c. You will still pay the taxes but just not on gas. Maybe income. Maybe on cutting highway jobs. But you will still pay.

Posted by: X marks the spot | Apr 29, 2008 5:28:44 PM

Seriously, you really think the 18 cents is going to actually get to the pump? the tax credits the oil companies already get don't get to the pump. A gas tax holiday is a boondoggle, Hillary knows it and she's said as much before. This is about buying votes, plan and simple. 18 cents per vote.

Posted by: Louis | Apr 29, 2008 5:44:06 PM

Tax the hell out of the rich BO supporters, and the oil companies that BO gave breaks when he supported the Cheney bill. That's how you will pay the gas taxes saved.

No wonder BO does not support reducing gas taxes.

Posted by: Boneheaded, Chicago | Apr 29, 2008 6:02:50 PM

It's all about PR. McCain and Clinton win, Obama (aka Soetoro) loses.

Posted by: A | Apr 29, 2008 6:10:20 PM

Boneheaded, Chicago

And, in your little world of wisdom, you don't think the oil companies wouldn't pass additional taxes to the consumer. Maybe you like that idea -- it would certainly keep the poor folk off the road.

Posted by: A | Apr 29, 2008 6:13:58 PM

18 cents means nothing to me. I drive to work down choked freeways. That wastes more money. Today we build nothing but toll roads, with public money, that allow people who can afford the tolls on top of the price of gas to get to work. The rest of us have to spend a couple of hours a day going back and forth.

Reducing fuel surcharges on trucking might be a better idea. As these companies user more and more private freighters they are pocketing these fuel charges, not giving it to the freighter, increasing their own profit at, you guessed it the public expense.

Basically with any reduction in the Gas tax you will see a reduction in price for a week or two, but it will soon be back to where it was or higher. They will claim of course that it decreased the rate of increase.

Obama is correct, this is political pandering.

Posted by: Thinking | Apr 29, 2008 6:43:36 PM

Obama is right the consumer will never see any of the cuts,the oil companies will have to make up the loss some way which always comes back to the consumer
Hillary and McCain will rob peter to pay paul,for only a short term solution.

Posted by: merle7 | Apr 29, 2008 7:37:16 PM

Obama is absolutely right on this. This gas tax holiday would take revenue from the Highway Trust fund which finances road and bridge repairs. So this holiday could delay badly needed repairs costing thousands of construction jobs. Hillary will say anything to get elected. It's sounds good in theory but it would be a disaster for this country

Posted by: lily | Apr 29, 2008 8:02:40 PM

question of supply & demand

Posted by: TK | Apr 29, 2008 8:13:45 PM

Don't blame the oil companies. They are the ones supplying what we want and without them we would have less and it would be even more expensive.

Companies go overseas and we blame them, companies stay here and become successful, we still blame them. If you want to live in a socialist country, leave. Earning profits is not a crime.

Posted by: reader | Apr 29, 2008 9:00:14 PM

Hillary and John want to sweep the gas dirt under the rug...but, for how long? And they talk as if gas were the only commodity on the rise...what do they propose to do about groceries? What do they aim to do after their period of grace is over? How do they aim to reintroduce the taxes? Do they realize that if prices meant to go back down on their own, due to demand and supply, all they would have accomplished with their superficial measure of tax relief would be crucial interruption of road construction funds and jobs.
These guys need to wise up. As for McCain, it is no wonder his wife wouldn't trust him with her money in the first place. As for Clinton, we know she would do anything to impress the voters.

Posted by: TK | Apr 29, 2008 9:03:11 PM

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