Can this be explained so simply a caveman can get it? (gas tax holiday)?

[Chi Guy]

- Gas = $3.70/gallon - http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html
- Gas tax holiday = $0.18/gallon (transfers to oil companies)
- OPEC/distributors raise price $0.18 gallon (offset taxes)
- Gas tax holiday ends (price increase $0.18/gallon)
- OPEC/distributors lower price $0.6/gallon (month later)

Overall you save $0.0/gallon for three months then pay $0.14/gallon MORE from then on.
I stated $0.14 more per gallon at the end due to the fact that the gas tax (federal state county) will actually be higher as it will be based on a percentage of the higher gasoline prices.
High Yellow or White? (below) Oh, so he actually learned from EXPERIENCE you say? Great point!

Some politicians never do. Case in point Hillary and McCain and the Middle East conflict.
Blue T (below) Due to Bush's national debt there is no extra revenue no matter what you try to cut.
shut up dummy (below) Agreed! Pelosi and Reid are pretty much worthless as leaders go.
jeeper_p (below) Hillary's plan calls for tranfering the tax to the companies. They in turn will transfer it back to the consumer. What don't you get?

McCain's plan is to not make up for the loss revenue and simply add to the national debt which devalues the US dollar.
jdog (below) Again..

==> Hillary's plan calls for tranfering the tax to the companies. They in turn will transfer it back to the consumer. What don't you get?

==> McCain's plan is to not make up for the loss revenue and simply add to the national debt which devalues the US dollar.

-
What don't you get? You think the oil companies will simply role over in the name of good will? Good luck with that.

OR do you prefer more national debt? What the hey just borrow till we drop.

 

[beta_hat]

I give the mic over to Paul Krugman for those who need a refresher course in economics:

Why doesn’t cutting the gas tax this summer make sense? 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. Cut taxes, and all that happens is that the pretax price rises by the same amount. The McCain gas tax plan is a giveaway to oil companies, disguised as a gift to consumers.

Is the supply of gasoline really fixed? For this coming summer, it is. Refineries normally run flat out in the summer, the season of peak driving. Any elasticity in the supply comes earlier in the year, when refiners decide how much to put in inventories. The McCain/Clinton gas tax proposal comes too late for that. So it’s Econ 101: the tax cut really goes to the oil companies.

 

[High Yellow or White?]

Obama voted for it 3 times. Must be Gold. Gold looks good with brown. I should put an extra tax on low riders, they tend to scrap the ground alot, therefore causing more damage to road surface. I call for a low rider tax.

You can vote me down all you want. I am not susceptible to social pressure.

 

[Justin Case]

So, you're prejudiced against cavemen are you? Not everyone can be as smart as you.

 

[BlueT]

The tax should come off. It cannot hurt. The revenue loss could be contained by getting rid of earmarks.