Tuesday, April 29, 2008

CLINTON AND MCCAIN CON VOTERS WITH TEMPORARY GAS TAX RELIEF

DEAN BAKER, PROSPECT Almost all economists would agree that the tax cut proposed by Senators Clinton and McCain would save consumers nothing. With the supply of gas largely fixed by the capacity of the oil industry (they claim to be running their refineries at full capacity), the price will not change in response to the elimination of the tax. The only difference will be that money that used to go to the government in tax revenues will instead go to the oil industry as higher profits.

If Senator Clinton is able to use this proposal to draw a contrast with Senator Obama in expressing concern for middle-class families it could only be attributable to the extraordinary incompetence of the reporters who are covering the campaign. While typical middle-class families may not have the time and background to realize that Senator Clinton's proposal would not save them any money, reporters do.

The fact that Senator Clinton, like Senator McCain, sought to deceive them with a bogus tax cut should have been the main theme of today's election reporting.

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