Discussion in 'Politics' started by Gunny, May 3, 2008.
Well yeah, I cn't imagine how a break at the pump coul possibly help consumers.
I wonder how they figure that any construction jobs will be lost. Yes, I can just see it now. "Well boys, the tax revenues this quarter weren't what we expected. I guess government is just going to have to shed some jobs!"
Yeah, the construction thing threw me off too. More money means more investment capital means more construction, not less.
Just the usual baseless fearmongering.
Obama is upset that he didn't think of it first.
I'm not sure I agree with the analysis, but here it is:
Gas station owners who now charge $4.00 per gallon know that this is the price the market will bear. If the tax of 18.4 cents is removed, and the market demand is unchanged, the price to the consumer won't drop. The owner will simply keep the 18.4 cents as extra profit.
I think the owners will keep most of the money, but not all. Consumer expectation of a tax holiday may create some pressure to lower prices, but I have little hope of an initial drop of more than a few pennies. Once summer vacationing season begins, those savings will disappear.
As to job losses: that will happen, but not right away. Except in the case of special Congressional earmarks, highway projects aren't funded out of general revenues, which is where deficit spending occurs. They are funded from the Federal Highway Trust Fund, which is fed by the gas and diesel taxes. FHTF projects will drop, and that will costs jobs. Look for increased layoffs after the elections.
With needed highway maintenance deferred, expect more repairs, accidents, delays and longer commutes. Repairs and accidents cost you more money, especially if insurance cost goes up. Traffic delays mean you burn more gas just sitting in traffic.
At the end of the summer, expect no extra money in your pocket and crappier roads ahead.
Highway funds are already drying up in anticipation of just this various sort of nonsense. As I've said before and will always say it ... government has no business running our infrastructure. If people paid what it really takes to build and maintain our roads we would have had more trains and mass transit ages ago.
Obama appeared on Meet The Press today, and discussed this issue. Apparently, the same measure was introduced in Illinois when he was in the legislature, and he voted for it. But (as I explained above) the gas station owners simply jacked up their prices and took the intended tax relief as extra profit. Road projects suffered and jobs were lost, but the consumers got nothing.
On one side, we have Clinton and McCain pandering for votes with promises that don't work. In contrast , we see Obama refusing to pander and taking the far riskier approach of appealing to the intelligence of voters.
I'm a little surprised that gunny and meat fell for the pander.
To read it at a glance, it's a good idea. After reading the explanation as to why not, it's not such a good idea.
There's no pander to fall for since I didn't make the "pandering for votes" connection to it that you have.
I apologize for saying that to you. If I had known you changed your mind, I never would have said that.
Obama felt the same way you did when he first confronted the issue, and he changed his mind when experience proved him wrong. I'm not going to hold you to a higher standard than our next president. So, once again, I apologize.
Really.... political pandering....Lmao
In 2000, gasoline prices were climbing quickly, reaching $2 a gallon in the Chicago area a remarkable price back then. Illinois legislators scrambled to offer some election-year relief to angry motorists.
Obama voted three times for a tax holiday.
The version that ended up becoming law required a six-month suspension of the state's share of the sales tax on gasoline, a 5 percent tax paid directly by consumers rather than gas stations. It also required gas stations to post signs on their pumps saying that the Illinois General Assembly had lowered taxes and the price should reflect that cut.
The impact of the tax holiday was never clear.
A government study could not determine how much of the savings was actually passed along to motorists. Many lawmakers said their constituents didn't seem to have benefited. They also worried the tax break was pushing the state budget out of balance.
At the end of Illinois' tax holiday, there was a failed push to eliminate the sales tax permanently. Obama was among those voting against eliminating the tax.
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