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Clinton-McCain White Working Class Gas Gimmick

By Byron A. Ellis-May 06, 2008

The holiday gas gimmick reflects what the Clintons think of white working class Americans, which are now the Clintonian new Blacks. The Clintons were able to used Blacks in the past in a similar fashion; they are good at what they do. However, here is why removing the federal gas tax will not reduce the price at the pump.

Many working class whites have bought and sold homes, and some have not. Nonetheless, here is the analogy between suspending the real estate selling commission on the sale of a home to suspending the gas tax. Lets assume that the market price of a home (gasoline) is $350,000 (or for gasoline $3.50 per gallon) and that real estate selling commission is 6 percent (or $0.18 gasoline tax). We are equating the real estate selling commission to the federal tax on gasoline.

Now, if the home (gasoline) is sold to a buyer (consumer) for the market price of $350,000 (or if gasoline for $3.50 per gallon), the seller pays the real estate agent $21,000 in commission (or if gasoline, the seller of the gasoline pays the government $0.18 in taxes). If the real estate agent decides to have a commission holiday and charges no commission, the $21,000 commission goes to the seller, not the buyer. Likewise, if the government remove the tax, which is being paid by the seller, the $0.18 per gallon tax would not go to the buyer, it would be kept by the seller.

In essence the seller’s revenue is the full price minus the commission (tax). However, if the commission (tax) is removed, the seller’s revenue is the full price. Clearly, the benefit of the gas tax holiday goes to the seller, not the consumer. So, the Clinton-McCain gas tax holiday proposal would be another windfall to crude oil producers. That is a bait and switch gimmick.

So either Hillary or McCain are naïve, with little understanding of how the economy work or their proposal is a judgmental error. However, thhe proposal reflects their previous policy judgment for authorizing the invasion of Iraq, which destabilized the Middle East and caused the price of crude oil to rise.

Rising crude oil prices ripples through energy dependent industries causing inflation. Inflation affects living standards and robs American and world citizens of their hard earned income.

Additionally, both Hillary and McCain have shown a propensity to attack Iran, apparently, without understanding the adverse consequences of more instability in the Middle East.

So, how can such childish gimmick, and poor judgment, fool white working class Americans? What would lead them to choose against their interest? The only explanation is the ignorance of racism.

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