The Gas Tax 'Holiday' Shell Game

by Janet Ritz

Cross-posted on The Huffington Post, Reuters, FoxNews

Senators Hillary Clinton and John McCain have challenged Senator Barack Obama over his refusal to support their proposal that would suspend the .18 Federal gas tax for three months this summer.

The problem?

A near-unanimous chorus of protests from experts, economists and environmentalists, all of whom support Senator Obama's position that the 'holiday' would net less than thirty cents a day for consumers -- if indeed any net at all -- since, historically, oil companies have absorbed the savings without passing them on, while gutting the transportation infrastructure trust fund that is the source of income for thousands of American workers and the safety net for our highways and bridges that are currently crumbling.

Environmentalists have also added that it would likely lead to more gasoline usage as at time when we need to reduce our carbon footprint due to the impact of climate change.

The lone 'expert' in support of Senators Clinton and McCain in this scenario so far?

Spokesman for the Clinton campaign and SHELL OIL LOBBYIST, Steve Elmendorf.

To which, Senator Obama responded:

“In a moment of candor, her advisers actually admitted that it wouldn’t have much of an effect on gas prices. But, they said, it’s a great political issue for Senator Clinton. So this is not about getting you through the summer, it’s about getting elected,” Obama argued. “This is what passes for leadership in Washington, phony ideas, calculated to win elections instead of actually solving problems.”

The environmental organization, Friends of the Earth, has endorsed Senator Obama, citing the gas tax issue as false and lauding the Illinois Senator for standing up to political pressure to tell the truth about it. Newspapers across the country have also weighed in with their criticism, including this quote by one of Senator Clinton's own supporters:

“I was appalled by Hillary going with the gas tax,” said Alice M. Rivlin, a budget director under former President Bill Clinton who supports Mrs. Clinton for the nomination. It “looked like pandering,” Mrs. Rivlin said.

An open letter signed recently by more than 100 economists said the proposed tax holiday would do little to reduce gas prices. In part, that is because a fall in prices would lead to more demand, which would cause prices to return to their earlier level. The result would be that overseas oil-producing governments would get money now flowing to the United States government in gas taxes.

What is also being lost in this pandering: the fact that this idea was first floated by John McCain and then picked up by Senator Clinton...

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'Friends of the Earth' Endorse Barack Obama

by The Environmentalist Staff

The Friends of the Earth Action, the PAC political arm of The Friends of the Earth environmental organization, has endorsed Senator Barack Obama for President, citing Senator Obama's stand for "real energy solutions instead of sham Clinton-McCain ‘gas tax holiday’" as the key reason for endorsement.

WASHINGTON, D.C.—Friends of the Earth Action, a national environmental group based in Washington, D.C., announced today that it is endorsing Senator Barack Obama to be the nation’s next president.

“We endorse Senator Obama because we believe he is the best candidate for the environment,” said Friends of the Earth Action President Brent Blackwelder. “The ‘gas tax holiday’ debate is a defining moment in the presidential race. The two other candidates responded with sham solutions that won’t ease pain at the pump, but Senator Obama refused to play that typical Washington game. Instead, Obama called for real solutions that would make transportation more affordable and curb global warming. He showed the courage and candor we expect from a president.”

Experts agree that gas prices are likely to decline only slightly under a Clinton-McCain “gas tax holiday”—if they decline at all. Instead of signing onto this gimmick, Obama has called for long-term solutions that would limit oil consumption by requiring cars to be more fuel efficient and expanding transportation options including passenger rail.

Blackwelder cited Obama’s strong pro-environment record, his policy proposals, the profile he has given global warming in his campaign, and the broad mandate he is building for change as other reasons for the endorsement. Obama earned a 96 percent rating from the League of Conservation Voters during his first two years in the Senate. Blackwelder said Friends of the Earth Action plans to inform its more than 100,000 activists in the U.S. about its support for Obama and to campaign for him in remaining primaries.

Friends of the Earth Action previously endorsed John Edwards in the Democratic primary process and engaged in early state independent expenditures on his behalf.

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