Gas, as all Americans except the Amish know, is expensive right now. John McCain's solution is to eliminate the federal gas tax during the summer, thereby saving consumers, oh, about enough for a couple steaks at Friday's.
Now the Democrats have joined the white-hot debate: Hillary Clinton supports the gas tax holiday, Barack Obama has thrown the gas tax holiday under the bus (which costs $93 to fill up), and I have an adrenaline rush from all the punditry.
Thomas L. Friedman rages…
This is not an energy policy. This is money laundering: we borrow money from China and ship it to Saudi Arabia and take a little cut for ourselves as it goes through our gas tanks. What a way to build our country.
A member of Congress seethes…
House Majority Leader Steny Hoyer (D-Md.) waded into the contentious issue of a suspension of the federal gasoline tax this morning, saying categorically that the Democratic leadership of Congress has no intention of pursuing a policy that he said "would not be positive."
While the "tax holiday" looks nice to the Average American, because it is both a vacation AND an elimination of taxes, it is completely void of any economic sense.
Paul Krugman fumes…
It's Econ 101 tax incidence theory: if the supply of a good is more or less unresponsive to the price, the price to consumers will always rise until the quantity demanded falls to match the quantity supplied.
What? There's no graph with this. Can you clarify, Mr. Krugman?
Just to be clear: I don't regard this as a major issue. It's a one-time thing, not a matter of principle, especially because everyone knows the gas-tax holiday isn't actually going to happen.
Great. I was just getting a nice, angry lather worked up. Way to spoil everyone's fun, Krugman. No wonder they call it the dismal science.
What on earth am I supposed to be righteously pissed off about now?
Tags: Barack Obama, Energy & Oil, Hillary Clinton, John McCain, Taxes