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John McCain and or Hillary Clinton proposes? I thought Barack Obama was telling us for over 15 months that he is a different type of politician - one who would embrace 'good things' regardless of where on the political divide it came from?
Friday, April 25, 2008
Obama on gas tax holiday: Favored it in 2000, opposes it now
Earlier this morning, I saw Barack Obama speak on television in Indianapolis on the need to have lower gasoline prices.
Well, who could be against that? Obama, for one.
Senator John McCain has proposed a summer federal gasoline "tax holiday," which Obama opposes. Hillary Clinton supports it.
In 2000, Illinois had a summer gas tax holiday, which then-State Senator Barack Obama voted for, as State Senator Matt Murphy (R-Mount Prospect), points out in this Illinois Republican Party press release:
Friday, April 25, 2008
Obama on gas tax holiday: Favored it in 2000, opposes it now
Earlier this morning, I saw Barack Obama speak on television in Indianapolis on the need to have lower gasoline prices. Well, who could be against that? Obama, for one.
Senator John McCain has proposed a summer federal gasoline "tax holiday," which Obama opposes. Hillary Clinton supports it.
In 2000, Illinois had a summer gas tax holiday, which then-State Senator Barack Obama voted for, as State Senator Matt Murphy (R-Mount Prospect), points out in this Illinois Republican Party press release:
The gas tax moratorium passed in 2000 with Barack Obama's help lowered gas prices and saved Illinois drivers hundreds of millions of dollars. So I'm surprised to learn that Obama now opposes a federal moratorium this summer. Lowering gas prices would deliver immediate relief to American drivers and help grow our economy. It worked in Illinois, and it would work nationwide. John McCain understands the plight of hardworking American families, that's why he's proposed a moratorium on the federal gas tax when we need it most.
Source: Republican Party surrogate
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Fact Check: Despite past record, Obama opposes gas tax 'holiday' his rivals are backing
THE FACTS:
In 2000, gasoline prices were climbing quickly, reaching $2 a gallon in the Chicago area – a remarkable price back then. Illinois legislators scrambled to offer some election-year relief to angry motorists.
Obama voted three times for a tax holiday.
The version that ended up becoming law required a six-month suspension of the state's share of the sales tax on gasoline, a 5 percent tax paid directly by consumers rather than gas stations.
It also required gas stations to post signs on their pumps saying that the Illinois General Assembly had lowered taxes and the price should reflect that cut.
The impact of the tax holiday was never clear.
A government study could not determine how much of the savings was actually passed along to motorists. Many lawmakers said their constituents didn't seem to have benefited. They also worried the tax break was pushing the state budget out of balance.
At the end of Illinois' tax holiday, there was a failed push to eliminate the sales tax permanently. Obama was among those voting against eliminating the tax.
Obama's presidential campaign says the lessons of that Illinois tax holiday influenced his decision to oppose a national tax holiday. The lack of clear results then make him dubious about suspending the national tax now.
In addition, the Illinois tax was paid directly by consumers and increased as gas prices increased. Obama's campaign points out the national tax is a flat 18.4 cents (24.4 cents a gallon for diesel) and, therefore, isn't climbing as gas prices climb.
It's also paid by producers, raising more questions about whether they'd pass the full savings along to customers.
During a three-month suspension, the average driver would save only about $28, according to the American Association of State Highway and Transportation Officials.
"That assumes the oil companies are going to give it to you. That's probably not a likely outcome," said Jack Basso, the association's director of management and business development.
If oil companies did pass along the savings, tax experts say, the lower prices would increase demand. Since refineries are already at maximum production levels, the increased demand probably would drive prices back up.
The association also estimates that suspending the tax would divert about $8.5 billion from the Highway Trust Fund, which pays for road and bridge repairs and already faces a shortfall of $3.2 billion. Taking that tax money from the trust fund could endanger hundreds of thousands of jobs – every $1 billion in highway money supports 33,000 jobs, by one estimate – and would push more maintenance and construction costs onto the states.
"The federal gas tax is a piddly little 18 cents. If that is eliminated, it isn't going to make an iota of difference to the average gasoline purchaser, yet it's going to hasten the bankruptcy of the Highway Trust Fund," said Rod Diridon, head of the Mineta Transportation Institute at San Jose State University.
McCain suggests avoiding that problem by replacing the lost money with unspecified funds from elsewhere in the budget. Clinton wants to impose a new tax on oil company profits to make up for lifting the gasoline tax.
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By Christopher Wills
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Fact Check: Despite past record, Obama opposes gas tax 'holiday' his rivals are backing
Wednesday, April 30, 2008 04:04:11 PM
THE FACTS:
In 2000, gasoline prices were climbing quickly, reaching $2 a gallon in the Chicago area – a remarkable price back then. Illinois legislators scrambled to offer some election-year relief to angry motorists.
Obama voted three times for a tax holiday.
The version that ended up becoming law required a six-month suspension of the state's share of the sales tax on gasoline, a 5 percent tax paid directly by consumers rather than gas stations.
It also required gas stations to post signs on their pumps saying that the Illinois General Assembly had lowered taxes and the price should reflect that cut.
The impact of the tax holiday was never clear.
A government study could not determine how much of the savings was actually passed along to motorists. Many lawmakers said their constituents didn't seem to have benefited. They also worried the tax break was pushing the state budget out of balance.
At the end of Illinois' tax holiday, there was a failed push to eliminate the sales tax permanently. Obama was among those voting against eliminating the tax.
Obama's presidential campaign says the lessons of that Illinois tax holiday influenced his decision to oppose a national tax holiday. The lack of clear results then make him dubious about suspending the national tax now.
In addition, the Illinois tax was paid directly by consumers and increased as gas prices increased. Obama's campaign points out the national tax is a flat 18.4 cents (24.4 cents a gallon for diesel) and, therefore, isn't climbing as gas prices climb.
It's also paid by producers, raising more questions about whether they'd pass the full savings along to customers.
During a three-month suspension, the average driver would save only about $28, according to the American Association of State Highway and Transportation Officials.
"That assumes the oil companies are going to give it to you. That's probably not a likely outcome," said Jack Basso, the association's director of management and business development.
If oil companies did pass along the savings, tax experts say, the lower prices would increase demand. Since refineries are already at maximum production levels, the increased demand probably would drive prices back up.
The association also estimates that suspending the tax would divert about $8.5 billion from the Highway Trust Fund, which pays for road and bridge repairs and already faces a shortfall of $3.2 billion. Taking that tax money from the trust fund could endanger hundreds of thousands of jobs – every $1 billion in highway money supports 33,000 jobs, by one estimate – and would push more maintenance and construction costs onto the states.
"The federal gas tax is a piddly little 18 cents. If that is eliminated, it isn't going to make an iota of difference to the average gasoline purchaser, yet it's going to hasten the bankruptcy of the Highway Trust Fund," said Rod Diridon, head of the Mineta Transportation Institute at San Jose State University.
McCain suggests avoiding that problem by replacing the lost money with unspecified funds from elsewhere in the budget. Clinton wants to impose a new tax on oil company profits to make up for lifting the gasoline tax.
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By Christopher Wills
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