CNN told its audience that Clinton's elimination of the gas tax for the summer would save consumers $30. This is not true. Since the supply of gas is more or less fixed, refineries are likely to be running at capacity, the price is determined by demand. This means that if the government eliminates the tax, the price will stay the same. The only difference is that the $18.4 cent a gallon will go to the oil companies rather than the government. That is why economists call Clinton's tax cut a gift to the oil industry, unfortunately CNN missed the story.
--Dean Baker
