BernieHund: The Political Watchdog

April 30th, 2008 at 5:29 pm

Obama and the Gas Tax… Then and Now

Once upon a time Senator Obama was PRO a gas tax holiday.

 Democratic Sen. Barack Obama accuses his presidential rivals of pandering to voters by supporting the “gimmick” of temporarily lifting federal taxes on gasoline, despite his own past support for a similar tax holiday.

As a state legislator voting for a tax break, Obama even joked that he wanted signs on gas pumps telling motorists that he was responsible for lowering prices.

Most experts criticize the idea of a federal tax suspension, but Obama’s political opponents accuse him of flip-flopping and ignoring the financial pain caused by today’s rising gas prices

Is this a flip-flop or perhaps has Senator Obama realized that what sounds good when one is in a state legislature isn’t always good for the nation? 

In 2000, gasoline prices were climbing quickly, reaching $2 a gallon in the Chicago area — a remarkable price back then. Illinois legislators scrambled to offer some election-year relief to angry motorists.

Obama voted three times for a tax holiday.

The version that ended up becoming law required a six-month suspension of the state’s share of the sales tax on gasoline, a 5 percent tax paid directly by consumers rather than gas stations. It also required gas stations to post signs on their pumps saying that the Illinois General Assembly had lowered taxes and the price should reflect that cut.

The impact of the tax holiday was never clear.

A government study could not determine how much of the savings was actually passed along to motorists. Many lawmakers said their constituents didn’t seem to have benefited. They also worried the tax break was pushing the state budget out of balance.

At the end of Illinois’ tax holiday, there was a failed push to eliminate the sales tax permanently. Obama was among those voting against eliminating the tax.

Perhaps, Senator Obama learned from past experience.  As I have always been told, doing more of what doesn’t work doesn’t make it work any better. 

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