Gas Tax - "Truth" Ad

Just another reason why BO might be the better candidate. He’s willing to look at the bigger picture and holdout for a long-term fix, not just promote what is perceived popular at the moment or a short-fix to solicit votes. I don't mind giving-up a little today, for a much better tomorrow, if it make sense.

Thomas Freidman explains best in Dumb as We Wanna Be. Friedman writes "Unfortunately, the idea is so ridiculous, so unworthy of the people aspiring to lead our nation, it takes your breath away. Hillary Clinton has decided to line up with John McCain in pushing to suspend the federal excise tax on gasoline, 18.4 cents a gallon, for this summer’s travel season. This is not an energy policy. This is money laundering: we borrow money from China and ship it to Saudi Arabia and take a little cut for ourselves as it goes through our gas tanks. What a way to build our country."

It's kinda like why save a tank of gas today, if there's a better way to save ten tanks of gas tomorrow?

Update: 3 MAY 08 : Hilary really messed-up on this time. Hilary’s economic gas relief plan calls for the elimination of an 18.4 cents per gallon excise tax on summer gas consumption. And while on the surface, it sounds ver appealing, it’s clearly flawed for an economic perspective.

Sure, her plan will lower gas prices, but it will also increase consumption, and in turn, the increase in consumption means an increase in gas prices back to original levels. Simple supply and demand, Economics 101: lower prices = increased demand.

The difference, however, will be the increase in gas prices will flow directly to oil producing countries, without the U.S. treasury taking a cut. Winners: Oil Producing Countries. Losers: US citizens. No change in gas price and no US Treasury income.

Based on this, egregiously myopic blunder of Hilary’s, I’m sure the Obama campaign will spend the weekend portraying her as economically illiterate, not a good thing in troubled economic times.

Obama’s counter proposal is to provide a $1000 paycheck income tax deduction. The consumer can then choose for themselves to either offset higher gas prices or food prices or whatever. The US treasury revenues will decrease, but the US citizen will benefit, without increase gas consumption, the associated damage to the environment cause by increase gas consumption and a windfall to oil producing countries.