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McCain's Rhetoric on Gas Tax Evolves
May 01, 2008 7:36 PM
ABC News's Bret Hovell reports: The rhetoric Sen. John McCain has been using to promote his plan for a gas tax holiday continued to evolve Thursday, as McCain asked politicians on both sides of the issue to "calm down" in order to provide some relief for Americans at the pump.
"In all due respect, all I’m trying to do is give Americans a little relief for the summer," McCain said, sounding a little more exasperated on the topic than he has in past days.
McCain’s plan, which has been embraced by his Democratic rival Sen. Hillary Clinton, D-N.Y., has been under fire from Sen. Barack Obama, D-Ill., and some economists. It would remove the 18 cents per gallon tax on gasoline that goes into what's called the highway trust fund, which pays for transportation projects.
(Clinton's version of the gas tax holiday would pay for the shortfall in a different way than McCain’s: Clinton would impose a tax on big oil companies, while McCain would take funding out of the general federal budget. That money could be recovered, McCain says, if Congress reduced spending on so called pork barrel projects.)
Critics say that lowering the price of gas will increase demand while supply is still tight, potentially eliminating any savings. The Obama campaign has argued that even if gas prices did immediately fall by 18 cents, that would save fewer than 30 dollars for consumers over the summer.
McCain seemed to concede that point Wednesday.
"It isn't a lot of money, but there's a lot of Americans that could use a little break," McCain said aboard his campaign bus.
As the week has progressed, McCain's suggestions for what Americans could do with their savings have adjusted as well.
On Sunday, McCain couched the savings in terms of summer vacation.
He said that if his plan is enacted, Americans may be able to "travel a little further and a little longer, and maybe have a little bit of money left over to enjoy some other things in their lives."
Thursday, he talked about how the savings could be used in the fall.
"Maybe [people will have] have a little extra money to buy textbooks or school supplies for their children this fall," McCain told the crowd at a town hall style meeting in Des Moines Thursday.
Obama on Thursday criticized both of his opponents for their plan and its comparatively small contribution to American’s pocketbooks, accusing them of political opportunism on the issue.
"That’s how Washington works," Obama said. "People are more concerned about looking good for the cameras and for politics than they are at actually solving problems."
McCain did not criticize Obama’s position on the gas tax in any of his public events Thursday, but he had been earlier in the week.
"Obviously Sen. Obama does not understand that what this would be a nice thing for Americans," McCain said Sunday.
To be sure, neither McCain nor Clinton will be president this summer to lower the tax on gasoline, and the Speaker of the House of Representatives Nancy Pelosi has said that she does not anticipate the measure coming to a vote before Memorial Day.
President Bush was lukewarm on the proposal during a news conference Tuesday.
"We’ll consider interesting ideas," Bush said. "But what I'm not going to do is jump right in the middle of a presidential campaign. We’ll let the candidates argue out their ideas."
ABC News’s Jennifer M. Duck and Sunlen M. Miller contributed to this report.
May 1, 2008 in Hunter, Duncan | Permalink | User Comments (34)
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That's the problem with the prevailing school of thought in this nation. GOVERNMENT IS NOT SHORT OF MONEY! it it short of self control. Military spending is roughly 11% of the national budget, social programs and entitlements are 30%... The military is constitutionally mandated, social intervention by Government is not. We seem to have come to the conclusion in this nation that we NEED the Government to take care of us and make decisions for us in our every day lives. I do not believe this. I think that when we give up our individual freedoms to a little intellectual elite in Washington DC, so that they may take our money to do with as they see fit to better our lives because they know better than us, then we have lost what it is to be Americans.
Borrowed from China? lol
ANY time money that I have earned resides in my pocket, I am happy. It works better there for me, and this country.
The war on terror puts a strain on our health care system? That's quite a stretch there... All this time I thought it was mostly due to high insurance costs from baseless lawsuits, and outright fraud... Wow, I had no idea military spending was tied to the cost of my Physical last year. The healthcare system needs attention, but certainly not from the Fed. We gave them Welfare, and Social Security, Medicare and Medicaide and they have utterly overspent and undermanaged them into bankruptcy all by themselves. If I had a Visa, Mastercard and a Discover that I had maxed out and then I applied for an AMEX card, well American Express would be pretty foolish to give me a card, huh? I'm pretty sure that I said the solutions I provide would be LONG TERM ones. It took 30+ years to get into this mess, it would be foolish to think we are going to be done with it in days, weeks or months. It will take years.
Posted by: Tim C | May 1, 2008 10:12:20 PM
keep the change and fix the pot holes
Posted by: paul | May 1, 2008 10:14:06 PM
McCain shows he's completely out of touch by suggesting that the money saved from the gas tax will buy "textbooks or school supplies for their children this fall."
I have some news for you Mr. McCain: $30 won't even buy one text book.
Posted by: dangrsmind | May 1, 2008 10:23:13 PM
Yeah, you do not realise the stretch there in healthcare because you definitely have had nothing to do with healthcare. You are only relating your point on health-care base on insurance companies and the rest. That is not where the problem is? you mentioned medicaid and medicare and yet you do not realise that the subsidies on all this programs is Government funded and there has been a decline. Research into new drugs and orphan drugs are also Government funded. County-owned hospitals, I can count so many. Research on new methodologies in the Universities are also Government funded . You made a strong point on our over-reliance on Government. That will be wonderful if we can break away from that but how possible is that? Government funds Education, Government funds healthcare, Government funds Defence. The only reliable way to break away from Government is entrepreneurship and that is capital intensive. Banks will not give everyone loans and even with that we still need Government subsidies.
Posted by: vinny | May 1, 2008 10:25:53 PM
Tim C. what we need is to stop using gasoline altogether. The electric car is more than ready to meet consumer need.
Posted by: Louis | May 1, 2008 11:03:34 PM
What does it matter that all three would endorse such an idea. The price will only go up by 18 cents immediately following the tax holiday anyway. The only way to resolve it; would be to counter the production restriction and release some of the oil reserve that the U.S. is hanging on to. Sad to see that OPEC has the U.S. eating out of their hands.
Posted by: tax relief? | May 2, 2008 12:02:14 AM
Lose the libs and drill for oil here. Caribou can wait. There is a 300 year supply here, even at 4% growth rate.
Posted by: JOEJOE | May 2, 2008 1:01:19 AM
Here's how the average U.S. gas price will look like with an average increase of $0.10 per week:
Memorial Day 2008 - $4.00
Fuel tax break begins (Memorial Day 2008) - $4.20
Memorial Day 2009 - $6.60
Memorial Day 2010 - $9.20
Memorial Day 2011 - $11.80
Memorial Day 2012 - $14.40
Yes, a few years into the future, one tank of gas in a sedan will be equivalent to a monthly car payment. Imagine making payments for three vehicles in one month. By that time, gas-powered cars will become extinct and replaced by bicycles and (for the rich who could afford them) electric cars.
Posted by: Joe | May 2, 2008 1:09:43 AM
Tim,
Yes, the government does not have any money left to pay for roads. Why do you think we cannot pay for the war...or better said who do you think is paying for the war? Let's be clear: China and us. The holiday break will never come to reality because Congress will not do it. These are just more Clintons lies, like the one she wants America to believe that she will get the nomination when she already lost and there is not a proper way for her to win anything. But people are true believers of Virgin Goldilocks and continue to pretend that she has a possibility. She is done. Let's get real...o maybe some of us like to be lied...it feels better.
Posted by: voter | May 2, 2008 2:12:54 AM
Obama doesn't pander. Period. Americans like myself approve of that.
Posted by: Patriot | May 2, 2008 4:26:16 AM
Clinton and McCain are two sides of the same establishment coin.
Posted by: Patriot | May 2, 2008 4:27:57 AM
I paid 19 cents a gallon in 1960. If we had taxed gas say 10 cents more each year and the money went into new/repairing roads and bridges, people would be living closer to work. Maybe Train/bus/metro systems would be greatly improved. Detroit lost it's streetcars because the car company's wanted it that way. Gas at $4.00 dollars is cheap. $8.00 in europe Oil is a precious resource. We need Atomic power plants, Wind turbines, Water turbins, new homes should be green. Instead not much will happen and there will be crying and nashing of teeth. Wake up people!!!
Posted by: Joe W | May 2, 2008 7:41:08 AM
Food for thought: Fuel prices during WWII and today are the same, relative to inflation, that is.
I'll post a citation for my source soon...I have to go to a meeting.
Posted by: HaasCartwright | May 2, 2008 12:14:49 PM
Gas tax holiday would increase demand and oil companies would increase prices, lets see! 3.80 before gth, 3.60 after gth, price rises 3.80 again during gth, and a whooping 4.00 as soon as the tax is added on again....IF YOU DON'T UNDERSTAND THIS, THEN YOUR TOO DUMB TO VOTE!!!
Posted by: Brien | May 3, 2008 5:42:45 AM
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