A collection of over 200 economists have began circulating a letter rejecting proposals made by Hillary Clinton and John McCain to temporarily lift the federal gas tax for the summer months. Citing the poor implementation policies and drastic side-effects, including increasing the federal budget deficit, the group of Republican and Democratic voters are siding with Barack Obama and criticizing the plan.
While the plan exists to the benefit lower-income families over the summer months (lower gas prices = family vacations, according to Clinton and McCain), many assert that it serves as an enormous benefit to oil companies as well. Now, I’ll let you make your own conclusions about how this benefits oil companies (and potentially car manufactures), but as consumers who are so conditioned to the rise and fall of gas prices, would we actually be accomplishing anything by temporarily lifting the federal gas tax? Four years ago, America was paying averages of $1.80 for a gallon of gas; today, we’re delighted when we fill up at $3.39 a gallon. McCain has publicly asserted that the temporary lift might save consumers around $30 for the summer – does that give you enough incentive to take the car out for a two-week road trip?
Economists Criticize Clinton, McCain Gas-Tax Plans – [Bloomberg]