Kate linked to this Ryan Avent post on why the McCain "gas tax" proposal is so idiotic; long story short, it doesn't help consumers and it actively hurts the environment. Apparently, however, Senator Clinton didn't get the memo:
Sen. McCain last week called for Congress to suspend the 18.4-cent federal gas tax and 24.4-cent diesel tax from Memorial Day to Labor Day. The Arizona senator has moved aggressively in recent weeks to rebut Democrats' criticism that he is out of touch with voters' economic concerns.
Earlier Monday at a town-hall forum on economic issues, Sen. Obama rejected the proposal. "I've said I think John McCain's proposal for a three-month tax holiday is a bad idea," Sen. Obama said, warning consumers that any price cut would be short-lived before costs jump again.
Speaking on CNN Monday night, New York's Sen. Clinton outlined a series of steps to address gas prices, including the release of oil from the country's strategic reserves. She said she would "also consider a gas-tax holiday, if we could make up the lost revenues from the Highway Trust Fund," which the federal gas tax supports. She didn't specify how those lost revenues would be recovered.
It's not just about the lost revenue; the holiday would have no effect on the very problem it proposes to solve.
--Robert Farley
