Leadership Is...
...imploring warring African peoples to stop fighting! That's what Barack Obama is doing.
What he's NOT doing is pandering to Americans to suspend the Federal government's tax on fuel.
Senator Barack Obama has reached out to MEND (Movement for the Emancipation of the Niger Delta) to ask them to cease hostilities with the Nigerian government (see this link to the article in AllAfrica.com) The spate of attacks, kidnappings and bombings of oil facilities there have done more to exacerbate the rise in oil prices than any recent phenomena. By the way oil this morning exceeded $120/barrel for the first time ever, even adjusted for inflation.
(Back story: MEND is in armed conflict to "end exploitation and oppression of the people of Niger Delta and the degradation of the natural environment" with the government over the equitable distribution of massive amounts of money that the government of Nigeria receives from companies like Royal Dutch Shell Oil in payment for siphoning black gold out of the ground, primarily from the extremely poor Niger river delta region of Nigeria.)
Both Hillary Clinton and John McCain have been suggesting a summer-time suspension of the federal gas tax would ease the burden on Americans -- and encourage them to drive more -- during the summer months. They both wish to institute a "gas-tax holiday" by suspending the 18.4 cent per gallon federal gas tax and 24.4 cent per gallon diesel tax from Memorial Day to Labor Day. With gas prices hovering near $4.00/gallon everywhere, this is an obvious attempt a pandering to the "great American illiteracy," and here's why:
So far, only one state, Washington State, has run the numbers and made public the estimated effect on drivers. The gas tax holiday proposed would save the typical Washington driver $28 this year -- not even enough for a family of four to dine at the local franchised faux-Mexican restaurant or to attend a movie, and barely enough for McDonalds-- but will cost that state about $126 million in lost highway money and more than 4,300 highway-related jobs. Why? you ask... Well the gas tax is what funds all those road repair projects that we bitch and moan about (especially in Chicago, Los Angeles and the East-coast metroplex from Washington DC to Boston) -- and those projects, coincidentally, employ millions of Americans.
The Houston Chronicle estimates that a suspension of the gasoline tax would divert about $30 billion from the vital task of rebuilding U.S. highways and bridges which are desperately in need of repairs or replacement -- witness last year's collapse of the I-35 bridge in St Paul, MN, and the widely-acknowledged poor state of repairs in which most bridges and roads can be found.
Clinton says she would cover the loss with a windfall profits tax on the oil industry, an idea that wouldn't even garner the support of every Democrat in the House and Senate. And basic economics would tell you that such a drastic, and non-structural increase in taxes would discourage production and send oil and gas prices even higher.
No, the answer to our high oil price dilemma is better foreign relations and policy!
Has anyone noticed that the places where oil comes from -- Iraq, Saudi Arabia, Venezuela, Bolivia, Nigeria -- are awash in violence much of it influenced, at least in part by US foreign policy -- or the lack thereof?
So, how's about we fix that issue, problems at the source, with thoughtful negotiation and policy, or at the very least presence, rather than more least-common-denominator Washington chicanery around taxes.
Would you rather save $28 over the summer? Or would you rather have better international relations that might save you more than a few bucks? Hopefully, you'll choose the latter.
What he's NOT doing is pandering to Americans to suspend the Federal government's tax on fuel.
Senator Barack Obama has reached out to MEND (Movement for the Emancipation of the Niger Delta) to ask them to cease hostilities with the Nigerian government (see this link to the article in AllAfrica.com) The spate of attacks, kidnappings and bombings of oil facilities there have done more to exacerbate the rise in oil prices than any recent phenomena. By the way oil this morning exceeded $120/barrel for the first time ever, even adjusted for inflation.
(Back story: MEND is in armed conflict to "end exploitation and oppression of the people of Niger Delta and the degradation of the natural environment" with the government over the equitable distribution of massive amounts of money that the government of Nigeria receives from companies like Royal Dutch Shell Oil in payment for siphoning black gold out of the ground, primarily from the extremely poor Niger river delta region of Nigeria.)
Both Hillary Clinton and John McCain have been suggesting a summer-time suspension of the federal gas tax would ease the burden on Americans -- and encourage them to drive more -- during the summer months. They both wish to institute a "gas-tax holiday" by suspending the 18.4 cent per gallon federal gas tax and 24.4 cent per gallon diesel tax from Memorial Day to Labor Day. With gas prices hovering near $4.00/gallon everywhere, this is an obvious attempt a pandering to the "great American illiteracy," and here's why:
So far, only one state, Washington State, has run the numbers and made public the estimated effect on drivers. The gas tax holiday proposed would save the typical Washington driver $28 this year -- not even enough for a family of four to dine at the local franchised faux-Mexican restaurant or to attend a movie, and barely enough for McDonalds-- but will cost that state about $126 million in lost highway money and more than 4,300 highway-related jobs. Why? you ask... Well the gas tax is what funds all those road repair projects that we bitch and moan about (especially in Chicago, Los Angeles and the East-coast metroplex from Washington DC to Boston) -- and those projects, coincidentally, employ millions of Americans.
The Houston Chronicle estimates that a suspension of the gasoline tax would divert about $30 billion from the vital task of rebuilding U.S. highways and bridges which are desperately in need of repairs or replacement -- witness last year's collapse of the I-35 bridge in St Paul, MN, and the widely-acknowledged poor state of repairs in which most bridges and roads can be found.
Clinton says she would cover the loss with a windfall profits tax on the oil industry, an idea that wouldn't even garner the support of every Democrat in the House and Senate. And basic economics would tell you that such a drastic, and non-structural increase in taxes would discourage production and send oil and gas prices even higher.
No, the answer to our high oil price dilemma is better foreign relations and policy!
Has anyone noticed that the places where oil comes from -- Iraq, Saudi Arabia, Venezuela, Bolivia, Nigeria -- are awash in violence much of it influenced, at least in part by US foreign policy -- or the lack thereof?
So, how's about we fix that issue, problems at the source, with thoughtful negotiation and policy, or at the very least presence, rather than more least-common-denominator Washington chicanery around taxes.
Would you rather save $28 over the summer? Or would you rather have better international relations that might save you more than a few bucks? Hopefully, you'll choose the latter.
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Thoughtful piece, T. If the proposed "gas-tax holiday" becomes a reality, brace yourselves for the bitching, moaning and whining that will result in the next 12-24 months when states are forced to cut back even more on critical infrastructure projects because there's just not enough money. Brace yourselves for the ripple effect that will tax existing public services to the breaking point.
Thanks TK! I just get effin' tired of the BS "quick fixes."
Guaranteed, there's someone in Indiana or North Carolina AT THIS VERY MOMENT casting a ballot for Hillary Clinton on the strength of this pledge. And has ANYONE noticed -- when either she, Barack or John take office, the summer will be LONG OVER, and the tax would be reinstated???
Goddamn, I hate the blatant appeals to the quick fix without any discussion of real solutions to real issues.
If this gas tax situation is an example of what she wants to do with health care reform, tax reform, etc, I'll pass...
Besides not solving the problem, the proposed gas tax holiday (why call it a holiday? Will there be picnics and parades?), it avoids the biggest problem we Americans have: too much oil consumption.
When we wanted to influence tobacco as a negative social influence, it was taxed heavily to dissuade its use. Same with alcohol. The only true solution is to reduce our dependency and abuse of oil. Increase gas guzzler taxes on vehicles, raise EPA emission standards, subsidize hyrbrid technology (still notice how few American cars are offered in hybrid electic models. Dodge/Chrysler doesn't even have one...), fund research, implementation, and production of green technologies and alternate energy sources, use grant money to influence urban planning for increased public transportation.
Our fuel issue is dynamic- social, political, economic- and it needs to be addressed as such. Only an honest and candid leader can create the the change necessary to really improve our situation.
Continued denial will only further the crisis.
Points well-taken, Effaridi.
Problem is, our country is delusional on a national basis. Nowhere is this delusion more obvious than our national obsession with taxation (and oil is a close second obsession).
We as a nation, want something for nothing. The reduction in taxes, in the minds of voters, can't reduce the level of service or safety we expect to receive from government. We still demand our roadsbe re-paved and bridges rebuilt, but no one wants to pay for it.
We'll let alone the subject of oil consumption, as I don't want to give myself a huge headache pointing out our nationally contradictory behavior vis-á-vis black gold.