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Democrats zero in on gas tax

Published: May 1, 2008 at 9:31 AM
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WASHINGTON, May 1 (UPI) -- With the Indiana and North Carolina primaries around the corner, the two Democratic presidential candidates disagreed on getting rid of the U.S. gas tax.

Sen. Hillary Clinton's proposal for suspending the federal gasoline tax as a way to drop gas prices at the pump is being criticized as ineffective and shortsighted, The Washington Post (NYSE:WPO) said Thursday.

Clinton meanwhile continued to paint Sen. Barack Obama, her opponent, as insensitive to morotists' plight by not endorsing it.

Joining in the criticism of the Clinton plan was U.S. House Majority Leader Steny Hoyer, D-Md., who said that the Democratic leadership had no intention of pursuing it now.

Clinton's proposal to suspend the 18.4-cent-per-gallon tax for the summer has drawn a lot of fire from economists who argue that the proposal, first offered by Sen. John McCain, the presumptive Republican nominee, would be counterproductive at a time of heavy travel and tight supply.

Obama, who says he favors a long-term solution, is proposing to reduce the cost of driving by suspending purchases for the country's Strategic Petroleum Reserve. Over the long term he says he would also tax windfall oil profits and cap carbon emissions to provide rebates for low-income Americans.



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