Krugman bitch slaps McCain and Clinton over the gas tax holiday
April 30th, 2008 by Sonny
Why this is a bad idea:
Gas tax follies - Paul Krugman - Op-Ed Columnist - New York Times Blog
Why doesn’t cutting the gas tax this summer make sense? It’s Econ 101 tax incidence theory: if the supply of a good is more or less unresponsive to the price, the price to consumers will always rise until the quantity demanded falls to match the quantity supplied. Cut taxes, and all that happens is that the pretax price rises by the same amount. The McCain gas tax plan is a giveaway to oil companies, disguised as a gift to consumers.
Hillary proposes funding her version of the gas tax holiday with an additional tax on oil company profits, which makes it pointless instead of evil.
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