Leigh Saavedra: Suspension of the Federal Gas Tax, Another Bridge to Sell You

A BUZZFLASH READER CONTRIBUTION
by Leigh Saavedra

Are the voters in Indiana and North Carolina going to fall for the newest political "trick," the one where Senators Clinton and McCain join hands and offer us a three-month break in the federal gas tax? We hope not and should spread fuller information about it to our friends.

These two senators insult our intelligence by waving it in our faces, like a piece of cheap candy to win a child's affection. The tax is 18.4 cents a gallon and the savings for each of us is estimated to be $30. The cost to the government is 18.5 BILLION dollars. And what we need to remember with a little more ferocity is that when anything COSTS the government, who is in deep debt, it means borrowing it, probably from China, and leaving the debt for our children to worry over. All so each of us can head to the beach this summer with a spare 30 dollars? I recall the horrifying root of our economic woes: we continue to borrow from the Chinese so that we can send money to Saudi Arabia (home of most of the 9-11 terrorists, a fact some still get confused over).

Additionally, as Barack Obama (who strongly opposes this "trick" as an easy grab of a few votes) points out, it would cost jobs. Who is out on the stump promising all the new jobs? The gas tax fund goes into road repair and infrastructure. According to the Department of Transportation, this "tax cut" would cost 300,000 people in construction their jobs. To think we could knock that many people out of work, all for the cost of a moderate dinner for two at a chain restaurant.

This is no surprise coming from McCain, who never (after his most recent change of heart, at least) meets a tax cut he doesn't like. But Hillary Clinton knows better, and she's playing us in a style that can't be called anything but Clintonian. This is pandering of the worst form, and she knows it. She claims she would pay for it with windfall tax profits from the oil companies, but she also knows the windfall profit tax will never get past Mr. Bush and his veto-proof Congress. Besides that, she's already declared that she would channel all windfall profit taxes to renewable energy. Consistency and integrity have to be weighed here.

It's a brave move for Senator Obama. The voter who is able to catch only five minutes' news a day will see only that Clinton-McCain is giving him something, while Obama is denying it to him. The fact that Obama speaks truth to those quick to pander to us reaffirms my belief that honesty and integrity are the first foundations for leadership.

We've gone eight years without that honesty and integrity. SURELY, we won't be fooled yet again.

A BUZZFLASH READER CONTRIBUTION

Leigh Saavedra is a veteran political activist, a former teacher, gifted education specialist, and arts columnist. She's also a writer of fiction and short poetry and is the author of two books, "So Narrow the Bridge and Deep the Water" (Seal Press, Seattle) and "The Girl with Yellow Flowers in her Hair" (Pitchfork Publishing, Metuchen, NJ).

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Using windfall profits to pay for the McCain-Clinton tax cut

I appreciate the different comments and do NOT mean to be argumentative, but a couple of respondents have said that the summer gas tax would be paid for by oil companies' windfall profits tax. I do have it embedded in my short article but apparently didn't emphasize it properly. Senator Clinton has already allocated income from windfall profits to go to work for renewable energy. That is CERTAINLY a worthy way (and necessary) to spend money, but because of that she canNOT use these same taxes to pay for the summer gas tax cut. She is saying contradictory things about how she would handle windfall profits taxes. This is what many mean by "the way Washington works." It doesn't fly. And no economic expert that I have found finds anything but an attempt to pander in this proposal. It IS an insult to us once we know that she has ALREADY allocated these funds for something else. As for Obama's support in the Illinois legislature for a gas tax, I am not knowledgeable enough to comment on that beyond saying that Obama has stated that he made this mistake. I love his ability to admit it when he's wrong, something I find lacking in the other two candidates. Last thing - It is GROSSLY unfair that Clinton, in today's speeches, tried to portray Obama as "FOR oil companies." That could not be further from the truth. Obama would definitely support windfall profits taxes on these gluttonous oil companies, but he would not redirect these funds for something that could cost 300,000 jobs. Leigh Saavedra

Stick to short fiction ...

I don't disagree with your premise that the gas tax holiday is a bad idea, and frankly, the point is moot - as it will never get through Congress. That being said, the explanations for your post are beyond weak, some ridiculously so.

1) So Obama's admission that he supported the holiday in Illinois but now charcterizes the tax holiday as "gimmicks" and "pandering" is admirable, because it shows he can admit when he's wrong? That's one explanation. Another is that he's looking for a way to differentiate himself from his opponents and draw attention from his recent troubles. Either way, you seem to suggest that he is above such "pandering." He wasn't eight years ago, and he's not now.

2) "It is GROSSLY unfair that Clinton, in today's speeches, tried to portray Obama as "FOR oil companies." - Don't know what speech you're talking about, and since the "quote" is only three words long, there's no context to determine what she meant. Assuming the quote is accurate, she may have been refering to his support for Dick Cheney's 2005 Energy bill. http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=1&vote=00213 . You know the one ... it was written by the energy lobbyists and attorneys. It gave away billions in tax breaks, royalty reductions and other benefits. You know, this one:

Thomas Friedman: 2005 Energy Bill Was 'The Sum of All Lobbies': "This bill is what the energy expert Gal Luft calls 'the sum of all lobbies.'" [Thomas Friedman, New York Times, 8/5/05]

The Washington Post said, "…The energy bill, touted as a way to reduce dependence on foreign oil or moderate gasoline prices, has been turned into a piñata of perks for energy industries." [Washington Post, 7/30/05]

For a more detailed explanation of how bad this bill is, see the Public Citizen report here - "The Best Energy Bill Corporations Could Buy: Summary of Industry Giveaways in the 2005 Energy Bill" http://www.citizen.org/cmep/energy_enviro_nuclear/electricity/energybill/2005/articles.cfm?ID=13980 .

So saying he is for "for the oil companies" is "GROSSLY unfair"? Hardly. Although, I guess you could just say he's "for the legislation written by the oil companies" ...... if that sounds better to you.

3) "Senator Clinton has already allocated income from windfall profits to go to work for renewable energy. That is CERTAINLY a worthy way (and necessary) to spend money, but because of that she canNOT use these same taxes to pay for the summer gas tax cut." - Talk about disingenuous - at least I hope so, for your sake. You mean it never occured to you that 8.5 billion of the windfall profit tax (the estimated cost of the tax holiday) could be allocated for the gas tax holiday, with the rest going to renewable energy research? So yes, it CAN be paid for with a windfall profits tax. "Insulting"? Only if you're trying to be insulted.

So Clinton is "pandering" and Obama is "brave" ...

Good thing Obama is a new "brave" kind of politician who "speaks truth" and would never "insult our intelligence by waving it in our faces, like a piece of cheap candy to win a child's affection." Except, he had no problem waving such candy as a state senator.

Turns out that, as a state senator in an election year, Obama voted three times for a gas tax holiday in Illinois http://news.yahoo.com/s/ap/20080430/ap_on_el_pr/obama_gas_tax_fact_check;_ylt=AjGJglSPqBIaVXJG_II50sqs0NUE . Heck, he even joked that he wanted signs on gas pumps telling motorists that he was responsible for lowering prices (signs were posted crediting the Illinois General Assembly).

BTW - I agree the gas tax holiday won't do much, and in the long term, both candidates have energy plans that address our dependance on oil. But Clinton's plan (unlike McCain's) pays for the holiday with a windfall profit tax on the oil companies, rather than adding to the national debt or sacrificing infrastructure and jobs, as Leigh claims. Back in 2000 (the year Obama was supporting a holiday) she opposed such a proposal precisely because it took money from transportation/infrastructure funds. I'm sure conflating the two plans was purely unintentional on Leigh's part, and in no way reflects a desire to deceptively lump Hillary Clinton in with McCain ..... right, Leigh?

are we comparing the same thing?

In 2000, was the Illinois government running a surplus or a deficit? I remember several states running a tax holiday in order to dump surplus money back to the public. It is a whole different story if the government is in debt and wants to go into debt further. I don't know if this was the case in 2000, but I am just posing the question.

Don't know ...

... about the Illinois' budget at the time, but the article doesn't seem to support the possibility of the tax holiday being an attempt to dump surplus money back to the public. It indicates that the holiday was prompted by a sharp increase in gas prices (almost $2.00/gallon - a lot at the time). It also indicates that, afterwards, many lawmakers opposed a permanent repeal of the tax because (in part) they "worried the tax break was pushing the state budget out of balance." Plus, Clinton's proposal is financed by a windfall profit tax on oil companies, not deficit spending.

Again, I don't think it's a good idea (regardless of the financing), but the double standard applied to Clinton and Obama is par for the Buzzflash course.

What Clinton/McCain are NOT telling us

...is that they will not do anything to prevent gas prices from rising.

So, let's do the simple math: cost of a gallon of gas -18.4 cents saved per gallon + x cents per gallon increase of price, - 300,000 jobs lost due to loss of revenue, - other costly factors that cannot be named until the "tax holiday" reveal them = another recipe for economic disaster served us by those, who think we're incredibly stupid.

Are they right? Are we incredibly stupid?