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Fact Checking Obama on Gas Tax

Pinnochiobama is at it again, bamboozling the American public in his latest Indiana TV ad.

Script:

Barack Obama: "I'm Barack Obama and I approve this message.

"I'm here to tell you the truth.

"We could suspend the gas tax for 6 months, but that's not going to bring down gas prices long-term. You're gonna save about 25, 30 dollars...or half a tank of gas.

"That's typical of how Washington works. There's a problem, everybody's upset about gas prices - let's find some short-term, quick-fix, that we can say we did something even though, even though we're not really doing anything.

"We cannot deliver on a better energy policy unless we change how business is done in Washington.

"We've got to go out to the oil companies and look at their price-gouging."

"We've got to start using less oil and that means raising fuel efficiency standards on cars and developing alternative fuels.

"That's the real honest answer to how we're going to solve this problem. That's what you need from a President someone who's going to tell you the truth."

Is he kidding? Pinnochiobama is going to tell us the truth?

The Associated Press has the inconvenient truth on Obama and gas taxes.

THE SPIN:

Obama argues that Democratic Sen. Hillary Rodham Clinton and Republican Sen. John McCain -- he calls them "the two Washington candidates" -- are pandering to voters by proposing to suspend the federal gas tax of 18.4 cents a gallon for three months. He says a tax holiday would provide consumers little real relief, ignore the country's energy problems and take money from road and bridge repairs.

"This is the problem with Washington. We are facing a situation where oil prices could hit $200 a barrel. Oil companies like Shell and BP just reported record profits for the quarter. And we're arguing over a gimmick that would save you half a tank of gas over the course of the entire summer so that everyone in Washington can pat themselves on the back and say that they did something," Obama says.

Clinton says Obama is turning his back on people who need relief from rising gas prices. Republicans, including the campaign of rival John McCain, question his switch.

THE FACTS:

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.

I guess this whole "pandering" game is at least one area where Pinnochiobama has experience, since as an Illinois senator Barack Obama voted three times for a gas tax holiday in Illinois.

And the Obamasphere just laps this stuff up.


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Comments (11)

Liz:

Whether or not you buy into Obama's trashing it now, the fact of the matter is simply that for most consumers, a 3 month 'holiday' will result in small savings, likely between $30 and $50 dollars total, over 3 months.

Here is a typical situation, with an average commute (mine):

I drive a 2004 Ford Escape to work and back 3-4 times a week, a total of 33 miles round trip commute. I fill up roughly every 6 days, taking in on average 13 gallons. So averaged over a month, I fill up 5 times for a total of 65 gallons of gas, a tax burden of $11.96.

Should the McCain or (copycat) Clinton proposal of a gas tax holiday for the summer month go into effect, it may feel like a reduction on the pocket book, but really, we are talking a total savings for me of only like
$36. This really isn't such a relief.

Lee Ward[TypeKey Profile Page]:

I don't believe Senator Clinton has suggested it's a huge savings.

P. Bunyan:

Two points.

First, while "average" people might not save much directly at the pump, everyone will save a lot of money overall if the tax is cut.

Truckers buy hundreds of gallons at a time. Farmers buy hundreds of gallons at a time. If their expenses drop, the cost of food will drop.

Second, Hillary's plan is to raise taxes on the oil companies to offset the cut in gas taxes so there will be no net effect at the pump if her plan were followed (the oil companies would simply pass the cost of the tax increase onto the consumer). It would simply be a typical election year farce. Of course while she hasn't said this, I'm sure the Democrats would plan to keep the taxes on the oil companies after the gax tax cut expired so the net effect would be significantly higher gas prices than if nothing were done.

Which is typical of Democrat plans.

He actually voted FOR ( or AGAINST ) some piece of legislation? That's news in itself.
I thought he just voted PRESENT.

Kind of shocking isn't it, Hugh! I thought Obama NEVER took a solid stand on ANYTHING!

kevino:

If I recall, the spike in gasoline prices in the year 2000 was due to the move toward special regional gasoline mixtures (mostly for environmental reasons). Refineries changed over to creating special blends for different parts of the country, and the distribution channels had to separate the blends so that they didn't mix. That was an expensive short term problem that created very high prices in Illinois. But that was a short term problem, unique to that conversion.

The situation today is very different: we are faced with a long term problem of increased demand world wide and decreasing supplies.

I don't see it's a big deal for politicians to use different solutions for different problems.

I wouldn't have a problem with them using different solutions - but "Taxing the Oil Companies" is supposed to be a solution to oil prices driven high by speculation and spot shortages?

Seems like there's only one 'solution' to anything economic any more - and it's like trying to use a hammer where you need to use a wrench or screwdriver.

I 'hope' that will 'change'. Don't see any signs of them trying to increase their tool selection, though...

Lee Ward[TypeKey Profile Page]:

What Senator Clinton has proposed is a windfall profits tax. The revenues would be plowed into alternate energy development with an eye on increasing alternative fuels which in turn would -- eventually -- lower demand which in turn would lower the price of oil.

Initially it wouldn't effect the price of oil one bit -- unless you believe that the oil companies manipulate the price of oil to increase their profits - and Republicans keep telling me that's not the case - that it is supply and demand, blah blah blah...

So let's tax the windfall profits - those increased profits the the oil companies receive without doing a damn thing to earn them -- and plow it into reducing our dependence on foreign oil.

Everyone wins except the tools of the GOP oil machine and their masters....

Alex:

The windfall profits tax was tried during the Carter Administration and it failed miserably.

Lee Ward[TypeKey Profile Page]:

Name something that was tried in the Carter administration that didn't fail miserably.

That doesn't mean it would fail now.

JLawson:

The B-1 Bomber? M-1 tank? Oh, you meant ECONOMIC attempts... um... um... stagflation? Raising interest rates to insane heights? Gas rationing?

You've got a point, Lee...

Past performance doesn't guarantee current performance, it's true...

But I have to wonder, considering the Luxury Tax debacle, just how much of that 'windfall' would get to actual alternatives instead of being repurposed to pork that won't help the energy problem at all.


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Publisher: Kevin Aylward

Editors: Lee Ward, Larkin, Paul S Hooson, and Steve Crickmore

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