Ask Experts Questions for FREE Help !
Ask
    BABRAM's Avatar
    BABRAM Posts: 561, Reputation: 145
    Senior Member
     
    #1

    Apr 21, 2008, 11:02 PM
    McCain's tax holiday proposal was withdrawn.
    This is an update on our discussion the other day which resulted fairly much like I expected. While we would had welcomed the holiday tax suspension for lowering gas, at least temporary, the tax would eventually have to be made up. Also the supply demand during the Summer would worked against the consumer and taxes that would had normally went toward infrastructure would had been delayed. Personally I can't fault McCain for his desired effort. I just don't think he understands the ramifications of the business aspect which fuels my suspicion of his leadership capability, especially on economics.


    ReviewJournal.com - News - ROAD WARRIOR: Gasoline tax holiday goes nowhere


    "How does that saying go? The road to the White House is paved with nice sounding policy, not nice sound policy.

    Last week, Sen. John McCain, R-Ariz. the Republican candidate for president, announced his plan for a holiday on gasoline and diesel taxes.

    He proposed suspending the 18.4 cent federal gasoline tax and 24.4 cent diesel tax from Memorial Day to Labor Day.

    McCain believes the cut would save citizens $1.84 for every 10 gallons of gasoline purchased during the period Americans traditionally purchase the most petrol.

    It sure sounds good, doesn't it?

    Like hiring basketball hall-of-famer Isiah Thomas to coach your team, McCain's tax holiday sounds good until you find out what it means.

    McCain's proposal was pushed forward as an amendment in the Senate on Thursday, but was withdrawn before anyone could get a look at the meat of the idea.

    If it had gone forward, the fuel holiday would have taken about $9 billion out of the transportation trust fund, money that is used to build and repair the nation's roads, bridges and other transportation infrastructure.

    Insiders believe the $9 billion would have to be repaid by plunging the general fund further into debt.

    Nevada transportation consultant Tom Skancke, who also served on the National Surface Transportation Policy and Revenue Study Commission, called McCain's proposal "bad policy."

    Preliminary numbers worked out by opponents of the proposal said the average American might save $28 over the three-month period.

    And that would all depend on the oil companies. Skancke explained that oil companies must prepay the fuel tax and then recoup their money by adding the charge at the pump.

    "What do you think is going to happen?" Skancke asked. "The consumer would never see the savings."

    Skancke believes the price at the pump would never go down and when the fuel tax was reinstated at the end of the summer, the oil companies would just tack on a new 18.4 cents a gallon.

    "The only people who would have come out of this smelling like a rose is big oil," Skancke said. "This would not affect them. They're not going to be good Samaritans."

    Besides oil company greed, there's another reason why the price of gasoline wouldn't go down: supply and demand.

    Since summertime brings the highest demand for gasoline, lowering the price would encourage more of it to be purchased.

    And the more gasoline that's purchased, the higher the price will go.

    So that $28 in savings may not even be there at all.

    Which is a point one of McCain's fellow senators tried to make. Sen. Harry Reid, D-Nev. has maintained that any cut in the gasoline tax should be covered by ending tax breaks for big oil companies, according to his spokesman Jon Summers.

    Plus, "the McCain amendment doesn't guarantee the savings will be passed on to consumers and would further add to the national debt," he wrote in an e-mail.

    And just to be sure this isn't a Democrat versus Republican thing, I asked U.S. Secretary of Transportation Mary Peters, a Republican who used to head the Arizona Department of Transportation, for her position on the gasoline tax holiday. Peters is aware of the proposal, but the Bush administration has not made a similar request, a spokesman said.

    Not exactly an endorsement. It's barely even an acknowledgement. And that's from a colleague who worked hand in hand on Arizona transportation issues with McCain for years.

    So, is this a case of good politics versus bad policy?

    McCain is wise enough to know his proposal wouldn't come close to passage in either house of Congress. And if it did, it would wreak havoc on the transportation trust fund that is already near shambles.

    Which might mean he and his people think the American electorate is a bunch of lollipops and would easily fall for some sweet-sounding words.

    That could be a real turnoff for any undecided voter."
    tomder55's Avatar
    tomder55 Posts: 1,742, Reputation: 346
    Ultra Member
     
    #2

    Apr 22, 2008, 02:53 AM
    I think he just floated the idea to see what the reaction would be . It would be unwise to suspend the tax for a number of reasons ,but primarily because it would've increased demand ,which would've increased prices at the pump back to the levels they were before the tax was suspended.

    By the way ;that is the same problem that universal health care has. Increased demand due to "no cost "creates shortages in supply.

    Which might mean he and his people think the American electorate is a bunch of lollipops and would easily fall for some sweet-sounding words.
    Like tax the rich ?
    BABRAM's Avatar
    BABRAM Posts: 561, Reputation: 145
    Senior Member
     
    #3

    Apr 22, 2008, 09:38 AM
    Exactly. McCain wanted the campaign boost effect, but it turned out to be false hope. The irony is in your signature, “The [Obama] campaign is entirely about Obama and his ability to inspire. Rather than focusing on any specific issue or cause—other than an amorphous desire for change—the message is becoming dangerously self-referential.”

    There will be a cost to Universal Health Care and we all know it. Knowing our government's record for past business adventures, I'm suspicious of how practical this will turnout. Between Dubya, Congress and the Feds, they've pretty much destroyed our country economically. In fact the reason we are headed the direction of UHC is because our Health Care as is, is already costly. I can't say I agree with Universal Health Care, except in principle. In this case I do think we need regulations since our health is a necessity, not an entertainment elective.
    Skell's Avatar
    Skell Posts: 1,863, Reputation: 514
    Ultra Member
     
    #4

    Apr 22, 2008, 04:31 PM
    McCain proved what a fool he is when it comes to economics with this plan.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #5

    Apr 22, 2008, 04:51 PM
    I don't know, both democrat running are promising all sorts of give aways, free health care, they would stop all of the foreclosures, lower interest rates and more. And everyone sees to believe them without blinking an eye.

    And many local governments have a tax free day on all sorts of products such as back to school supplies right before school, and I have never heard how it was harming anything.

    But as for as the cost of gasoline, we need to look no further than congress, why are we not drilling for more oil in Alaska, off shore , because congress will not let them, there are controls on every aspect of gasoline production.

    Also while not mentioned is the large call to demand to know why the gasoline companies made such high profits, after reading about Walmarts profits, ( understand more than the gas companies) are we going to demand that the president of walmart go before congress and explain why they have made so much profit off the american people?
    BABRAM's Avatar
    BABRAM Posts: 561, Reputation: 145
    Senior Member
     
    #6

    Apr 22, 2008, 05:01 PM
    Quote Originally Posted by Skell
    McCain proved what a fool he is when it comes to economics with this plan.
    They all promise the moon during the campaign process with McCain not as well rounded on economics. You're very astute! McCain just got caught first in "failed effort" and he hasn't even stepped a foot into the White House door.
    jake prince's Avatar
    jake prince Posts: 1, Reputation: 1
    New Member
     
    #7

    Apr 22, 2008, 07:11 PM
    Every one is bashing President George Bush.

    But take a look how things were in 2006 when the democrats took over Congress.

    One thing gasoline was 2.59 a gallon. But since the Democrats have taken over Congress this country has gone to pot.

    I have heard the issues that the democrat canidates have addressed of what they are going to do if elected. Unless something has changed in the government, the president can sign a bill into law or veto it.

    I don't understand that while senators Obama and Clinton who are presently serving in the law making body of the government have not done something about the issues that they are promisng to address.

    Last week the Democrat house passed the bill introduced by senator Maxine Walters from the state of California call the Jubilee Act. This forgives a trillion, that's right a trillion dollars in debt to the poor countries of the world. What do you think that this will do to our national debt. This is debt as we heard before, debt being passed on to our grandchildren.

    We quit in Korea , we quit in Viet Nam, and now they want us to quit in Iraq.


    Recently President Putin in Russia was replaced by a pupett if his. Putin's agenda will still continue. Russia is accumlating wealth as a result of the oil situation. Russia is upset at what the United States in doing in it armament of countries in Europe. Russia is preparing to start the arms race starts up again, Russia can afford it, but with the debt that the US has , it will bankrupt us.

    I do not question John Mcain Patriotism.

    I do not think that John Mcain will be a president by the rich, for the rick and to the rich.

    I think it is time for the News Networks to stop making the news and start reporting it.

    Wake up America.
    BABRAM's Avatar
    BABRAM Posts: 561, Reputation: 145
    Senior Member
     
    #8

    Apr 22, 2008, 07:28 PM
    It's starts at the top. But between Dubya, Congress and the Feds, they've pretty much destroyed our country economically. I'm not wearing an Americn flag pin on my lapel either.

    YouTube - Donald Trump On President George W. Bush

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

John mcCain's appearance [ 7 Answers ]

The apparent lump or mass on McCain's face//neck left side... is that a pow leftover, just "fatness" or some kind of a medical issue? Thanks in advance Sean :confused:

401k Early withdrawn - 10% exempt for First time home buy [ 4 Answers ]

Dear Sir, My friend has referred me to ask you this question as you being expert for Forign nationals.. On Feb 13th 2007 I have withdrawn $15000 ( check cut) from $,19.186.89 after fedility deducts taxes etc, thinking to buy home immedialty with out doing much research on penalities....

McCain's the Free Market candidate [ 11 Answers ]

From his victory speech last night : I will leave it to my opponent to argue that we should abrogate trade treaties, and pretend the global economy will go away and Americans can secure our future by trading and investing only among ourselves. We will campaign in favor of seizing the...


View more questions Search