The gas-tax wars

Candidates, Congress split on 'gas tax holiday'

Posted by Kate Sheppard at 5:53 PM on 01 May 2008

Muckraker: Grist on Politics The "gas tax holiday" has officially emerged as the latest ~~bickerfest~~ big issue in the presidential race. Hillary Clinton and John McCain say drivers need a break this summer, while Obama is aggressively pushing back against the idea.

In a new ad, Obama emphasizes that cutting the tax this summer would save most consumers a mere $30 -- about half the cost of a tank of gas these days. It's a short-term fix, he says in the ad, and "that's typical of how Washington works." (Even McCain has acknowledged that the holiday would amount to only a "psychological boost" and not sound policy.) Instead of gimmicks, Obama notes in the ad that we need to raise fuel efficiency and develop alternative fuels as a solution to gas woes. He's been pushing alternative transportation systems like rail transit, as David noted.

Obama's stance is backed by economic experts, virtually none of whom think a gas-tax holiday is a good idea. Most environmentalists are also opposed, and in recent days some leading Democrats, including House Speaker Nancy Pelosi (D-Calif.) and House Majority Leader Steny Hoyer (D-Md.), have also come out against the proposal.

But Obama's going to have trouble defending his position. His opponents are painting him as unwilling to help out cash-strapped average Americans. And some fellow Dems are joining calls to repeal the tax, among them Sen. Bernie Sanders (D-Vt.) -- generally among the more environmentally concerned senators -- who voiced support for axing the tax today. He suggests doing it in conjunction with an excise tax on oil companies:

The $35 billion in new revenue would fund a six-month federal and state "gas tax holiday." This approach would lower the price of gas by up to 36 cents a gallon without reducing the Highway Trust Fund at a time when repairs to our decaying roads and bridges are desperately needed.

Of course, Congress could just instate that excise tax on oil companies without the gas-tax holiday and put that $35 billion toward long-term solutions.

As Memorial Day draws nigh and congressional representatives start taking sides on this issue, you can be sure the "gas tax holiday" will be a hot one in weeks to come.

For story: The gas-tax wars
5 Comments | Post a Comment

same dynamic in the Senate debate of L-W

Repubs are gearing up to yell higher gasoline prices

Conservative Dems fear that PR campaign, and many want to weaken the target reductions of L-W and put in a safety valve. They will try to kill L-W without fingerprints, and bring back a weaker bill (through Energy Committee) next Congress.

The dream of an ever more progressive climate bill is not based upon counting votes.

L-W has legs because large blocks of business see a way to make money. Progressives want to cut out that part in the name of fairness and efficiency and whatever.

Kill business interest, and you kill support for caps even as aggressive as L-W.

Maybe 20 Dems are strong on climate. About 6 are unalterably opposed to anything meaningful. About 25 will blow in the wind, but are easily scared by talk of higher gas prices or economic disruption.

1 Repub for climate, about 42 unalterably opposed, maybe 6 on the fence.

Right now, Sen. B will try to scare everyone behind the scenes, hoping L-W gets less than 40 votes. (Distinctly possible.) Then he will say the woman senator cannot handle the issue, and push the leader to put the "energy issues" back into the Energy Committee next year.

Likely to work.

by ce1907 at 4:08 AM on 02 May 2008

Well

CE1907, remember what happened with the 2007 Energy Bill?

It was a mix of pork and progressive policy.

Then they killed the progressive policy, all except the fuel economy hike. (Which was largely agreed upon because they want to stop California from regulation GHGs)

I do admit you have to keep pork in mind, however you also need to figure out what type of "path of least resistance" are you creating.

Don't sell the farm unless you plan on getting something good in return.

-David Ahlport

by GreyFlcn at 4:56 AM on 02 May 2008

aftermath

I can't help but wonder - if the gas tax holiday goes ahead, I guess it will last just long enough for people to have got used to the lower prices. How will people react once it's over and the price of gas jumps back up...?

by VeganCountyFan at 7:19 AM on 02 May 2008

Hillary's getting killed among environmentalists

The gas tax holiday is a blatant pander ... but it's Obama who's going to have trouble defending his position? If anything, this is establishing Obama as the greenest candidate in the race, which may not be a big deal in a general election, but when we're down to fighting over a few hundred superdelegates, a strong green stand could make an impact.

Join the discussion on global warming, recycling, and organic beer at The Green Miles!

by TheGreenMiles at 8:16 AM on 02 May 2008

GreyFlcn

The people who controlled the Energy Bill want to take control of the climate bill. They will balance things as they did before.

Energy Committee will gut the 2020 standards, if they can. Preempt. Safety valve. Numerous other. Then declare victory, Dingell will cheer, and we will be done for a decade.

That is the wolf in the closet.

The set up for the coup is this year's vote on L-W bill. That will be sabotaged to justify taking over. To the extent possible, the sabotage will be off stage and through proxies.

Expect personal attacks and attacks on "procedure." The time-honored way to oppose policy in DC is to destroy the advocate for the other position.

by ce1907 at 6:48 AM on 03 May 2008

ADVERTISING POLICY

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