Anyone up for a gas tax holiday? A month ago, Republican presidential candidate John McCain proposed one and it has been quite the topic of discussion recently in Democrat primary elections. The tax break would last from Memorial Day through Labor Day (the country’s peak summer/vacation travel months) giving consumers/taxpayers a partial break from the higher gas prices we’ve all been experiencing.
Democrat Hillary Clinton supports it—sort of. She’s all for the consumer tax break but would have the government confiscate oil company revenues in a “wind-fall” profits tax to provide it. Democrat front-runner, Barak Obama, is against the break and made it a significant distinction between him and Mrs.Clinton in recent primaries.
The candidates’ positions are instructive and representative of their and their party’s beliefs. Let’s remember whose money it is in the first place. That’s right, it’s YOURS!! Personally, any time I can save money, whether a tax break or a sale, I’m all for it. Big or small it all helps. But beyond the tax break the larger issue is how these Presidential candidates think about taxes, Americans, and American businesses.
McCain thinks that people ought to get at least a small break from gas taxes when a lot of people can really use it most: during the traditional summer high-travel, high-use period. Additionally, he thinks that the market may correct itself over time. All markets are cyclic and oil prices may moderately decline, especially since economists say that a large part of oil prices is simply commodities futures market speculation. Additionally, economic lowdowns, like we are currently experiencing, usually decrease oil demand. Lower demand and increased supply normally result in price decreases. McCain believes giving folks a temporary break, having government tighten its own spending belt for a while—like most consumers have to do; and
allowing the economy, businesses, and markets time to work is the way to go.
While for the gas tax break, Clinton’s approach would be completely different in philosophy and execution than McCain’s. Her wealth redistribution approach takes from the “rich” and gives to the “poor” so as not to impact government expenditures at all and is a basic socialist/communist edistribution scheme. Slurring oil companies as greedy, evil, and rich through unproven and unsubstantiated claims; she accuses oil companies of making excessive profits by gouging consumers. She would confiscate “profits” and distribute them to the “more deserving.” Her scheme would detrimentally impact employment rates since those “greedy” businesses use profits to hire and pay people to work for them; would decrease stock values/dividends of the majority of Americans that hold stocks, mutual funds, and retirement accounts (since “profits” she wants to confiscate fund dividends and
capital gains), and would decrease the incentive to actually start, maintain, and operate businesses here in America. If she establishes a precedent to confiscate profits (property) in one business what stops her from taking (stealing) from other profitable companies or individuals in the future?
Distinguishing himself from McCain and Clinton, Obama is against the tax holiday altogether claiming that it’s just a cheap election year gimmick. He says it would save the “average” American just 40 cents a day while at the same time saying that the tax holiday would disrupt $9 billion of government projects the tax pays for. (Whose money is it again?)
As an elite Senator maybe he’s forgotten that the working poor actually pay sales taxes when buying things, like gas, and so would benefit from even a temporary tax holiday. Or perhaps he discounts the relief the tax suspension would have on union (and non-union) truckers, cab drivers, bus systems, and small businesses severely impacted by high fuel costs who would benefit more than the “average” American and help keep their ivelihoods/businesses afloat.
Instead Obama segregates Americans along income lines considering households making more than $100,000 “rich” and makes campaign promises that in his administration he will ensure the “rich” pay their “fair” share. I guess my wife and I should feel good that we are now “rich” rather than middle class, but we won’t have long to enjoy it with Obama’s promise to raise taxes. That’s a change from the Bush presidency we should all hope against.
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Greg Beck is a US Army retiree who enjoys life and tax holidays in Leavenworth.