Monday, July 28, 2008

McCain Tests Out Total Economic Stupidity

Economists have pointed out that John McCain's proposed gasoline tax cut would result in a benefit to oil companies as opposed to consumers, since the gasoline price is set by supply and demand, and in the short-term supply is pretty much fixed. Any change in taxes would not change the supply and demand factors, thus not changing the price, but simply result on oil companies keepng a larger percent of gasoline revenues.

In an interview on ABC yesterday, John McCain said he stood by his earlier call for a so-called “gas tax holiday”. Asked how he would prevent oil and gas companies from absorbing the tax break themselves, McCain said Americans would not “let” the companies do do.

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