That is what the headlines on Senator McCain's proposal to remove the gas tax for the summer driving season should have read, since that would be the predicted effect of his plan.
According to the oil industry, they have their refineries running flat out, producing all the gas they can. This means that the price is determined on the demand side.
We have a fixed amount of gas entering the market, the question is simply what price clears the market. In this context, if we reduce or eliminate the gas tax, the price doesn't change, the lower tax will simply allow Exxon and other oil companies to keep more profits (unless of course they were lying about running their refineries at capacity).
Since most people do not have much familiarity with economics, the media should be informing the public about the impact of Senator McCain's proposal.
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