As crude oil almost reached a record $120 a barrel in trading on the New York Mercantile Exchange yesterday, Hillary Clinton joined John McCain in advocating for a summer federal gas tax holiday.  Talking about reducing the prices Americans pay at the pump is definitely good politics.  But are the voters being pumped instead?

The difference between the two proposals is that while Senator McCain’s plan aids consumers it also decreases the funding for the Highway Trust Fund, Senator Clinton’s plan will not affect the Highway Trust Fund because she is proposing to pay for it by imposing a windfall profits tax on oil companies. 

There is no question that higher gasoline prices are now forcing the food and other consumer goods price hikes, and American consumers and businesses are hurting.  The truth is, we will have to live with higher energy prices for years to come.  The long-term pressure on oil prices comes from the increased demand for energy from countries like China that subsidize the energy costs for its manufacturers, fueling both the rabid production of goods and the wasteful allocation of energy resources.  

It’s time for the candidates to show that they can think strategically and address the real causes behind soaring gas prices that will, unfortunately, be hurting American voters way past the Election day.

This entry was posted on Tuesday, April 29th, 2008 at 10:37 pm and is filed under Holding China Accountable, Economic Security. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.