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All Economists Despise 'Gas Tax Holiday', What With Its Hilarious Lack Of Logic [View All]

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Leo 9 Donating Member (560 posts) Send PM | Profile | Ignore Wed Apr-30-08 02:10 PM
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All Economists Despise 'Gas Tax Holiday', What With Its Hilarious Lack Of Logic
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All Economists Despise 'Gas Tax Holiday', What With Its Hilarious Lack Of Logic



Many of you may be aware that gas prices are rising about 20 cents a week, causing much despair among Average Americans. John McCain found the perfect anti-solution for this energy Depression, in which the price of crude oil is reaching $120 a barrel, in his hilarious tax plan (the other aspects of which include slashing corporate taxes from 35% to 25%, eliminating the alternative minimum tax entirely thus re-opening old loopholes for the wealthy, and making the Bush tax cuts permanent all of which will be balanced by the elimination of like $200 million in earmarks). McCain proposes a "gas tax holiday" a break from the current 18.4-cent gas tax between Memorial Day and Labor Day and Hillary Clinton has announced she is all for it as well. Barack Obama isn't. Every. Single. Economist. Agrees with Barack Obama even the conservatives and Hillary's favorite Paul Krugman!

While the "tax holiday" looks nice to the Average American, because it is both a vacation AND an elimination of taxes, it is completely void of any economic sense. At least supply-side theory pretends to have a logic behind it. Even former Bushies hate the tax holiday, it being such a comical insult to their profession:

"Score one for Obama," wrote Greg Mankiw, a former chairman of President George W. Bush's Council of Economic Advisers. "In light of the side effects associated with driving ... gasoline taxes should be higher than they are, not lower."


And it's not just that 18 cents/gallon off of your fill-up is insignificant. It's that THERE WILL BE NO 18 CENTS/GALLON OFF OF YOUR GAS BILL AT ALL, but, uh, oil corporations already making record profits will have one less tax to pay. Tell them, Hillary Clinton economist Paul Krugman:


Why doesn't cutting the gas tax this summer make sense? It's Econ 101 tax incidence theory: if the supply of a good is more or less unresponsive to the price, the price to consumers will always rise until the quantity demanded falls to match the quantity supplied. Cut taxes, and all that happens is that the pretax price rises by the same amount. The McCain gas tax plan is a giveaway to oil companies, disguised as a gift to consumers.

snip

http://wonkette.com/385781/all-economists-despise-gas-t...


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  -All Economists Despise 'Gas Tax Holiday', What With Its Hilarious Lack Of Logic Leo 9  Apr-30-08 02:10 PM   #0 
  - Hell, I think we should be gradually increasing the gas tax.  slick8790   Apr-30-08 02:12 PM   #1 
  - Not when the price of gas is already high  nebula   Apr-30-08 02:21 PM   #8 
     - Well that's why I'm not a politician.  slick8790   Apr-30-08 02:25 PM   #11 
        - No need to increase taxes  nebula   Apr-30-08 02:33 PM   #13 
  - As a resident of Minneapolis, whose bridge collapsed killing many of our  myrna minx   Apr-30-08 02:14 PM   #2 
  - she has already said it would only be done if she can make up the taxes elsewhere  Texas Hill Country   Apr-30-08 02:15 PM   #4 
     - But why tax other ways and shift the burden elsewhere when the proposal is  slick8790   Apr-30-08 02:20 PM   #7 
     - Yup she says that, but I am yet to hear her actually come up with a proposal.  futureliveshere   Apr-30-08 03:02 PM   #19 
  - All economists? your article cites a guy from Dubya's admin and a guy from Brookings... srsly?  Texas Hill Country   Apr-30-08 02:15 PM   #3 
  - Is it really not enough for you that her own supporter, Paul Krugman,  redqueen   Apr-30-08 02:19 PM   #6 
  - The old joke was that you lay all the economists in the world, head-to-toe, on the equator, and  shain from kane   Apr-30-08 02:23 PM   #9 
  - Hillary will see snake-oil to the people if it serves the moment -- she couldnt care less of America  quantass   Apr-30-08 02:18 PM   #5 
  - Pandering like McCain. Old School politics is so transparent!  FrenchieCat   Apr-30-08 02:25 PM   #10 
  - Hillary has suggested paying for this by making up the  paulk   Apr-30-08 02:28 PM   #12 
  - It's the old shell game  fifthoffive   Apr-30-08 02:59 PM   #18 
  - She will say anything to get elected. Old politics.  anonymous171   Apr-30-08 02:43 PM   #14 
  - You're pretending Clinton's and McCain's plan is the same. Krugman disagrees.  jobycom   Apr-30-08 02:48 PM   #15 
  - "Somebody needs to do something": So why isn't HRC actually "doing" anything  onenote   May-01-08 03:12 PM   #29 
  - Has anyone seen anything from even ONE economist who...  RichardRay   Apr-30-08 02:50 PM   #16 
  - Pablum for the sheeple. Hey it's a "HOLIDAY!!"  BlueManDude   Apr-30-08 02:52 PM   #17 
  - K & R!  Hope And Change   Apr-30-08 03:22 PM   #20 
  - Couple of points, and a simple question for Obama supporters  lumberjack_jeff   Apr-30-08 04:02 PM   #21 
  - The consumer catches the tax either way  Chulanowa   Apr-30-08 04:23 PM   #22 
  - That's not necessarily true.  lumberjack_jeff   Apr-30-08 05:20 PM   #23 
     - Market "logic" doesn't work with essentials  Chulanowa   May-01-08 03:06 PM   #25 
        - Probably not quite true...  RichardRay   May-01-08 03:11 PM   #28 
        - An $0.18 tax per gallon  lumberjack_jeff   May-01-08 03:57 PM   #31 
  - where is her proposal? How does this get done before Memorial Day  onenote   May-01-08 03:14 PM   #30 
  - Newsweek economist on AA radio (Ed Schultz)called it "stupid". n/t  dana_b   Apr-30-08 05:22 PM   #24 
  - A holiday from reality n/t  DefenseLawyer   May-01-08 03:09 PM   #26 
  - nice graphic.  FLDem5   May-01-08 03:10 PM   #27 
 

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