Gas Tax: The defining issue for a presidential nomination?

     As the battle for the Democratic Presidential nomination rages on, the gas-tax holiday may be the defining issue between Hillary Clinton and Barack Obama. Clinton continues to market her gas-tax holiday plan to “the working people” while Obama firmly opposes the tax.
     On NBC’s “Today” show Monday, Clinton said, “Let’s figure out how we are going to help people; instead of talking about it, which is all we seem to do.”
     Clinton’s plan calls for a halt to the federal gas tax during the summer. To keep funding available for the highway system, Clinton plans to go after oil companies to make up the difference. “You’ve got to have a leader ready to take on the oil companies starting now,” Clinton said.
     Obama has accused Clinton of using a “gimmick” to entice voters. He states the average family would only save $30. “People don’t need symbolic relief,” Obama said on NBC’s “Today” show. “They need real relief.”  
     Over 200 economists, including 4 Nobel Prize winners, have signed a letter which rejects the gas tax proposal. “Suspending the federal tax on gasoline this summer is a bad idea, and we oppose it,'' the letter says. The economists feel the moratorium would only increase benefits to oil companies while reducing funding for the highway maintenance trust fund.
     According to AAA Director of Public Affairs for Oregon and Idaho Maria Dodds, AAA has not yet taken a stance on the gas-tax holiday; however, the company is concerned about the impact to national highways and the transportation system.
     Consumers would save 18.4 cents per gallon which is about $2.39 per every trip to the pump. “Who doesn’t want to save the money?” questioned Dodds. “But for a lot of people that will not make or break the budget.”
     The price of crude oil leapt to over $122 per barrel earlier in the week. Dodds pointed out the dollar is weak and though the U.S. has dropped its consumption slightly, there continues to be high demand for oil and gas products in China and Eastern Europe.  
     As of Wednesday, AAA reported the national average for regular unleaded was $3.618 and diesel topped out at $4.617 per gallon. The average for Oregon was $3.674 for regular unleaded and $4.361 for diesel. Compared to last year in Oregon, regular unleaded has increased almost $0.29 and diesel has increased $1.41.
     Dodds says world events will continue to have an impact on the oil market. “If things stay where they are now, we project the national average to top out around $3.75 around Memorial Day,” she said. Consumers in the west could see prices at or over $4 per gallon.