Clinton to Support Gas Tax Holiday
(CBS)
From CBS News’ Fernando Suarez:
GREENSBORO, N.C. – As the summer travel season approaches, Hillary Clinton will focus on rising gas prices during her campaign stops in North Carolina today. She is expected to draw contrasts with her opponent, Barack Obama, for not supporting a gas-tax holiday, a plan that would shelve gas taxes between Memorial Day and Labor Day.
While the program has received support from travelers as they watch gas prices edge closer to an average of $3.50 a gallon, the gas-tax holiday has drawn criticism from both Democrats and Republicans who say ditching the tax would be fiscally irresponsible. Clinton supports a revenue-neutral gas-tax holiday, which she says can be made possible by paying for the program using money from a windfall profits tax on oil companies.
The gas-tax holiday was first offered by John McCain, and would temporarily suspend the 18.4 cent federal gas tax between May and September. Clinton argues her plan would not cost the federal government any money, while McCain has not yet explained how he will pay for his plan. She says McCain’s plan would drain the Transportation Trust Fund, which is used to repair and maintain roads.
Obama called the gas-tax holiday "one of John McCain's latest schemes," arguing that it would only save drivers $25 and hurt the Transportation Trust Fund. "The truth of the matter is the only way we’re gonna lower gas prices over the long term is if we start using less oil," Obama said. "The only way we do that is to increase fuel efficiency standards on cars and invest in new technologies."
Clinton will spend the day campaigning and fundraising throughout North Carolina today as the state gears up for its May 6th primary. She faces an uphill battle here, trailing in the polls to Obama by double digits.
