Monday, June 9, 2008

McCain and gas tax holiday

This commentary discusses McCain's idea of a gas tax holiday giving momentary relief to Americans from the strife of four dollars per gallon gas. The blogger ridicules the idea that John McCain can really do anything to help America's high gas prices. McCain's idea is to essentially eliminate the 18.4-cents a gallon federal tax. The blogger discusses the negative effect that this would have.
"This would cost the Highway Trust Fund between $9 billion and $11 billion. McCain hasn’t said whether he’d just increase the deficit to make up the difference, or just let the transportation money disappear, costing thousands of jobs."
This is a good point. But it seems anything that any candidate would propose would somehow have negative effects. Manipulating the economy to be a certain way, and to create supply and demand is impossible. Can any candidate propose a good solution that would actually work? It does seem the president would need a better solution than just shutting off a charge associated with gas, it would have a bad domino effect.
This blogger gives McCain a hard time for his comment on what effect the summer gas break would have on Americans. McCain say that “low-income families could save some extra cash to pay for their children’s school supplies this fall, or perhaps treat themselves to a nice dinner.” I do think this is McCain acknowledging that his proposal can't do much. Even though McCain uses a positive light to talk about his apparently conceded proposal, I think he is just being realistic in a hidden way.
I am wary that any presidential candidate will be able to fix this problem, though I will certainly indulge in wishful thinking. Though they must all propose a way to fix it because it is something that hits everyone hard ;and we look to a potential candidate that can fix all of our direct money problems.

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