The gas tax holiday will only work if the government caps prices.

[Lyric]

Assuming that the intended benefit is to substantially lower gasoline prices, and thus provide some relief to consumers, it will only work if the government makes sure that the oil companies and refineries are not permitted to raise wholesale prices in order to temporarily fatten their profit margins. They would also need to keep a heavy eye out for potential gouging by unscrupulous gas station owners--they're hurting like everyone else, and the temptation to maximize retail profit might be more powerful than the fear of getting caught breaking the law.

/Clinton supporter and a realist

[LARED]

1. The last time the government capped prices

I waited on line to buy gas for a hour sometimes, if there was any left, and could only buy it on every other day. Caps are not the answer. I don't have one but caps ain't it.

[Lyric]

3. I meant wholesale caps on profit percentages.

Not a firm "You can't go beyond this price" thing, but a fluid "You can't reap a profit margin greater than the percentage you're currently getting" thing.

Not the same as last time.

[doc03]

4. Exactly and the same thing will happen if a windfall

profit tax is imposed on the oil companies. That too is just a gimmick to get votes and both Hillary and Obama want that one. Percentage wise the oil companies do not make an exorbatant amount of profit, this is a capitalist system it's simply supply and demand. If we cut back on oil consumption the prices will go down. I think if you really wanted to do something about oil consumption you could give people a $3000 or $4000 tax credit to buy a hybrid car. Another idea would be to start a program similar to Kennedy's moon landing and set a goal to cut oil consumption by a certain percentage before 2010.

[gateley]

2. I think there's more to it than that.

The lost revenue from the tax will be enormous, and we need that money.

Also, the actual savings that you and I realize will be minimal -- less than $50 over the summer, is that what I heard? Weighed against the negatives, it doesn't seem worth it to me. Plus, it's US who will end up paying for it eventually, kind of like our "tax rebate".

Just not a really good idea, IMO.