Obama Is Right About The Gas Tax

SeekingAlpha - Gas Tax Holiday Is Populist, But Pointless

The idea of a “gas tax holiday” proposed by John McCain and embraced by Hillary Clinton may be politically popular but gets a resounding thumbs down from economists.

“Score one for Obama,” wrote Greg Mankiw, a former chairman of President George W. Bush’s Council of Economic Advisers, as reported by Reuters. “In light of the side effects associated with driving … gasoline taxes should be higher than they are, not lower.”

Economists said that since refineries cannot increase their supply of gasoline in the space of a few summer months, lower prices will just boost demand and the benefits will flow to oil companies, not consumers.