So, it appears that Sen. McCain isn't alone in his need for an Econ 101 refresher.
Today, presidential candidate Hillary Rodham Clinton criticized Barack Obama for not supporting the plan to suspend federal taxes on gasoline and diesel from Memorial Day through Labor Day. "I understand the American people need some relief," said Sen. Clinton.
There's no denying that the Americans are cash-strapped. As oil prices climbed toward $120 a barrel, food costs continue to skyrocket, and access to credit tightens, suspending the gasoline tax would almost certainly provide some small measure of short-term relief. But suspending the tax, in the long-term is a terrible idea.
Sen. Clinton proposed paying for the suspension by imposing a "windfall profits tax" on oil companies. Sounds like a great idea, especially as oil companies reap incredible, mind-boggling profits. But exactly how will Sen. Clinton accomplish this?
Anger at the oil executives abounds on Capitol Hill. There have been hearings, and more hearings. But, to quote the Bard, it seems more a tale full of sound of fury, signifying nothing. I haven't seen any legislation on changing the corporate tax structure. Even if such legislation were introduced, it'd need to be vetted by the Ways and Means (House-side) and Finance (Senate-side) Committees, each with their share of members who are reluctant to start raising taxes on the proverbial hand that feeds them.
Since raising taxes on oil companies, is, in my opinion, a non-starter, the money that should be coming from the tax will have to replaced somehow -- more deficit spending, increased taxes down the line, an even more decrepit infrastructure, or some combination thereof. The question really is, "Pay now or pay later?"
Today, presidential candidate Hillary Rodham Clinton criticized Barack Obama for not supporting the plan to suspend federal taxes on gasoline and diesel from Memorial Day through Labor Day. "I understand the American people need some relief," said Sen. Clinton.
There's no denying that the Americans are cash-strapped. As oil prices climbed toward $120 a barrel, food costs continue to skyrocket, and access to credit tightens, suspending the gasoline tax would almost certainly provide some small measure of short-term relief. But suspending the tax, in the long-term is a terrible idea.
Sen. Clinton proposed paying for the suspension by imposing a "windfall profits tax" on oil companies. Sounds like a great idea, especially as oil companies reap incredible, mind-boggling profits. But exactly how will Sen. Clinton accomplish this?Anger at the oil executives abounds on Capitol Hill. There have been hearings, and more hearings. But, to quote the Bard, it seems more a tale full of sound of fury, signifying nothing. I haven't seen any legislation on changing the corporate tax structure. Even if such legislation were introduced, it'd need to be vetted by the Ways and Means (House-side) and Finance (Senate-side) Committees, each with their share of members who are reluctant to start raising taxes on the proverbial hand that feeds them.
Since raising taxes on oil companies, is, in my opinion, a non-starter, the money that should be coming from the tax will have to replaced somehow -- more deficit spending, increased taxes down the line, an even more decrepit infrastructure, or some combination thereof. The question really is, "Pay now or pay later?"
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