Bloomberg Says Summer Gas Tax Holiday is the ‘Dumbest Thing’

[otterinbham 0]

I know pandering when I see it, and this is one really stupid idea.

It's simple economics. Want to drive down the cost of gasoline? Then REDUCE CONSUMPTION. Stripping away a gas tax essentially will spike demand, having the opposite effect of what was intended. Driving down the highway this morning to an early client meeting, I didn't see many cars on the road with more than one passenger, so I'm guessing that the pain threshold hasn't been reached yet. It's right up there with the Fed giving away money and Bush giving away rebates...all both initiatives are doing is fueling the dollar's decline which, in turn, drives up the cost of oil.

I cannot believe that I actually subscribe to keeping a tax in place. But I suppose there's an exception to ever rule.

[RunInRed 16,493]

I know pandering when I see it, and this is one really stupid idea.

It's simple economics. Want to drive down the cost of gasoline? Then REDUCE CONSUMPTION. Stripping away a gas tax essentially will spike demand, having the opposite effect of what was intended. Driving down the highway this morning to an early client meeting, I didn't see many cars on the road with more than one passenger, so I'm guessing that the pain threshold hasn't been reached yet. It's right up there with the Fed giving away money and Bush giving away rebates...all both initiatives are doing is fueling the dollar's decline which, in turn, drives up the cost of oil.

I cannot believe that I actually subscribe to keeping a tax in place. But I suppose there's an exception to ever rule.

So just for the record, you believe Obama has it exactly right and both Clinton and McCain are wrong on this issue?

[otterinbham 0]

I know pandering when I see it, and this is one really stupid idea.

It's simple economics. Want to drive down the cost of gasoline? Then REDUCE CONSUMPTION. Stripping away a gas tax essentially will spike demand, having the opposite effect of what was intended. Driving down the highway this morning to an early client meeting, I didn't see many cars on the road with more than one passenger, so I'm guessing that the pain threshold hasn't been reached yet. It's right up there with the Fed giving away money and Bush giving away rebates...all both initiatives are doing is fueling the dollar's decline which, in turn, drives up the cost of oil.

I cannot believe that I actually subscribe to keeping a tax in place. But I suppose there's an exception to ever rule.

So just for the record, you believe Obama has it exactly right and both Clinton and McCain are wrong on this issue?

Absolutely. No question. I applaud him for it, as a matter of fact. Because, unlike some other posters on this board from both ends of the political spectrum, I do not uncritically swallow any baloney generated by the PR flacks of the respective political campaigns.

[CircleDrill 178]

As much as I would like for gas to cost a little less for a few months, the deeper issue here is that Clinton and McCain have jumped on board this quick-fix bandwagon so heavily.

What does that say about what they would do as President?

There is a limited supply of gasoline. 5 years from now, gas will approach $10 a gallon. There is no other possible outcome.

Tax holidays do nothing to affect the real issue which is supply.

[channonc 466]

As much as I would like for gas to cost a little less for a few months, the deeper issue here is that Clinton and McCain have jumped on board this quick-fix bandwagon so heavily.

What does that say about what they would do as President?

There is a limited supply of gasoline. 5 years from now, gas will approach $10 a gallon. There is no other possible outcome.

Tax holidays do nothing to affect the real issue which is supply.

Not to mention, the taxes you pay becomes a much smaller percentage of the price, as prices increase. Like Otter says, I think having a break on the gas tax will actually drive people to consume more (especially during the break), it just makes no sense.

[RunInRed 16,493]