So far, I pretty much agree with the consensus. Economists might overstate the rigidity of supply — it’s possible that eliminating the tax could spur producers to find a way to squeeze out a little more gas — but they’re probably right that the Clinton-McCain proposal will not shrink the price at the pump. Nevertheless, I think it’s an idea worth supporting. In fact, I’ve got two arguments in favor of it, though I doubt that either candidate will want to repeat them in public.
The first is that the tax holiday is a relatively cheap symbolic gesture that makes truly bad policies less likely.
Link Posted by Tim at May 8, 2008 09:53 PM | TrackBack