Being out of touch gives me gas!

The issue du jour is the Gas Tax Holiday. Both Senators McCain and Clinton want to introduce a Gas Tax Holiday to offset the high cost of Gasoline. Hilary is demanding a vote in Congress and challenging her peers to show whether they are for the people or big oil. To be fair, Hilary has included paying for the holiday by imposing a Windfall Tax on Oil Companies.

Experts have panned the idea. Why? Simply put, if the tax is suspended, but the price of gas doesn't change, then the Oil Companies stand to make an additional $10B in profits! Obama points out that not only does the industry benefit, there will be an immediate loss of jobs caused by highway projects not getting funding. I think that may be a little dramatic, but it does reflect the idea that Federal Excise Taxes on gas are used to fund highway projects- projects that should be replacing many aging infrastructure. This link to the American Society of Civil Engineering Infrastructure Report Card has links to stories regarding infrastructure problems, as well as the actual report card. If you want a good understanding of why a tax holiday is a bad idea, just read the report.

Being out of touch is the claim made against Obama by McCain, yet this quote is telling: "I want to give the American consumer a little bit of relief just for the summer. Maybe they'll be able to buy an additional textbook for their children when they go back to school this fall." If Obama's calculations are correct, and since Hilary is not disputing them they just may be true, then each family looking at saving an average of $35 for the summer. John obviously doesn't know what textbooks cost today. One of my students borrowed a book from me, since the book in question is about $115! Read the rest here.

Am I knocking $35? Weighed against the cost of vital infrastructure repairs, yes I am. I am willing to pay that $35 if it means the roads will be safer. Remember the I-35W Bridge in Minneapolis collapsed less than a year ago, and two of the three remaining candidates for President are willing to pay footsie for votes!! Check out Bagnewsnotes.