Gas Tax Relief, Obama Opposes
There is not very much we as consumers can “do today” to help reverse the escalating fuel prices and it’s financial impact, short ofÂ reducing the consumption. Frankly, we’ve not reached thatÂ price-pain threshold yet to convince most Americans to take action yet.
McCain has floated an idea to have a “holiday” from federalÂ gas taxes (currently 18.4 cents per gallon) for this summer season.Â Â Hillary Clinton has stated that she supports such a plan. Barak ObamaÂ thinks it’s a bad idea. (Interestingly, ObamaÂ voted for a very similar bill for Illinois back in 2000.)Â
Source: Wall Street JournalÂ
In a new policy split in the presidential campaign, Barack Obama opposed a federal gas-tax holiday supported by John McCain, the likely Republican nominee. Hillary Clinton said she would be open to the tax break.
Sen. Obama, who voted for a temporary gas-tax break when he was a state senator in Illinois, rejected a federal tax holiday as bad fiscal policy. The federal gas tax raises money to repair and expand the highway system.
In Illinois in 2000, Sen. Obama voted for a six-month, five-percentage point break on the stateâ€™s 6.25% gas sales tax. The reduction of the tax, which goes into a general revenue fund, passed on a 55-1 vote and included measures designed to ensure that the benefits of the tax break reached consumers. At one point, Sen. Obama jokingly asked on the Senate floor whether it would be possible to install placards on gas-station pumps telling motorists he had helped win temporary price relief.
When some state legislators tried to make the suspension permanent before it expired, Sen. Obama spoke out against that measure but defended his vote for the holiday, according to transcripts posted on the legislatureâ€™s Web site.
â€œI originally voted for the suspension because I thought that it was extraordinary circumstances, given the huge hike in prices,â€ he said at the time. Gas prices averaged $1.52 a gallon in March 2000.
You can check what your state fuel tax surcharge is in addition to the 18.4 cents per gallon the federal government takes.