Steny Hoyer: Clinton Gas-Tax Proposal Pointless

[babylonsister]

Clinton Gas-Tax Proposal Criticized

By Alec MacGillis and Steven Mufson
Washington Post Staff Writers
Thursday, May 1, 2008; Page A01


A growing chorus -- including a top congressional Democrat -- labeled Sen. Hillary Rodham Clinton's proposal for suspending the federal gasoline tax ineffective and shortsighted yesterday, even as she continued to paint Sen. Barack Obama as insensitive to drivers' woes for not endorsing the plan.

The Democrats' clash on the issue has emerged as a flash point in the week before the presidential primaries in Indiana and North Carolina and is emblematic of the broader contrast that the candidates have presented: Clinton says she would make immediate bread-and-butter fixes for struggling Americans, while Obama portrays himself as a truth-teller who would bring a new kind of politics to Washington and produce more lasting change.

Backing up Obama's position against Clinton's proposal to suspend the 18.4-cent-per-gallon tax for the summer is a slew of economists who argue that the proposal, first offered by Sen. John McCain, the presumptive GOP nominee, would be counterproductive. They argue that cutting the tax would drive up demand for gas at a time when the supply is tight, which would mean that the price at the pump would drop by much less than 18 cents per gallon.

The tax suspension would, as a result, cut into the highway trust fund that the tax supports, a loss of about $9 billion over the summer, but also result in fatter profit margins for oil companies. Clinton says she would replace the lost revenue by raising taxes on the oil industry.

Harvard professor N. Gregory Mankiw, who has written a best-selling textbook on economics, said what he teaches is different from what Clinton and McCain are saying about gas taxes. "What you learn in Economics 101 is that if producers can't produce much more, when you cut the tax on that good the tax is kept . . . by the suppliers and is not passed on to consumers," he said.

more...

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/30/AR2008043003575.html?hpid=topnews

[leftofcool]

1. If this is the same Steny Hoyer

the BFF of Nancy "impeachment is off the table" Pelosi, I can't get too excited about anything he says.

[Tippy]

5. Same Steny....But this is just as good as an endorsement....

Althgouh we will never know for sure my guess is Obama will benefit...

[sallyseven]

6. Steny hoyer is an ass.

Wish he would lose his seat.

[C_U_L8R]

2. Pointless.

There's a word for this silly season.

[Dogmudgeon]

3. And Obama's plan is -- ?

Hillary proposes not just dropping the gasoline tax, she proposes moving the burden of it to the oil companies, who have made record profits. Tax the rich and give the poor and middle-class a break.

Who is she pandering to?

The progressives, maybe?

Barack Obama wants to keep the status quo ante. Perhaps it's because he is the great truth-teller.

Or perhaps it's because some of his biggest http://blog.washingtonpost.com/the-trail/2008/03/28/obama_ad_ignites_questions_on.html">corporate donors are oil and other energy corporations. Thankfully he doesn't take their lobbyists' money.

No, he hires them, instead.

--p!

[babylonsister]

4. If you're really curious read/watch these:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=108x129999

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x125793

He's not interested in pandering like Clinton and McCain are. Find me ONE person who thinks this is a great idea, besides anyone connected to McCain/Clinton. I haven't heard one.