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Obama dismisses fuel tax holiday, blames SUVs for Detroit 3 woes

Obama dismisses fuel tax holiday, blames SUVs for Detroit 3 woes

Kenneth Hall May 5th, 2008 Kenneth Hall By Kenneth Hall Author May 5th, 2008
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December 31st, 1969 Presidential hopeful Senator Barack Obama has slammed pleas from opponent Hillary Clinton to grant a summer holiday from federal fuel taxes. Obama defended his position, stating that America's dependence on foreign oil was the product of a greedy domestic auto industry and reducing the tax will continue the downward spiral of the American economy. Throughout his campaign, Obama has faulted Detroit carmakers for trying to maximize profits without looking to the future, citing that the Detroit 3 were eager to take advantage of SUV sales without doing enough to research or promote fuel-efficient technologies - technologies which are currently benefiting the Japanese manufacturers greatly, while the U.S. auto industry struggles. While Senator McCain and Senator Clinton are both in favor of a gas tax break - McCain is proposing payment of the tax at government expense, while Clinton is pushing for oil companies to fund the shortfall – Obama has dismissed the idea, saying it would save very little money for motorists, reports The Detroit News. While Obama was not hesitant in pointing out the lack of foresight of the auto industry, Clinton has taken a more diplomatic approach in the hopes of not offending the auto industry and its significant workforce. The common theme between both Clinton and Obama is their stated commitment to much more stringent federal fuel-efficiency standards. Whether Obama's take-no-prisoners policy or Clinton's more soft-hearted approach appeals to you, at the end of the day their goals remain similar.
Obama dismisses fuel tax holiday, blames SUVs for Detroit 3 woes

Obama dismisses fuel tax holiday, blames SUVs for Detroit 3 woes

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Presidential hopeful Senator Barack Obama has slammed pleas from opponent Hillary Clinton to grant a summer holiday from federal fuel taxes. Obama defended his position, stating that America's dependence on foreign oil was the product of a greedy domestic auto industry and reducing the tax will continue the downward spiral of the American economy.

Throughout his campaign, Obama has faulted Detroit carmakers for trying to maximize profits without looking to the future, citing that the Detroit 3 were eager to take advantage of SUV sales without doing enough to research or promote fuel-efficient technologies - technologies which are currently benefiting the Japanese manufacturers greatly, while the U.S. auto industry struggles.

While Senator McCain and Senator Clinton are both in favor of a gas tax break - McCain is proposing payment of the tax at government expense, while Clinton is pushing for oil companies to fund the shortfall – Obama has dismissed the idea, saying it would save very little money for motorists, reports The Detroit News.

While Obama was not hesitant in pointing out the lack of foresight of the auto industry, Clinton has taken a more diplomatic approach in the hopes of not offending the auto industry and its significant workforce. The common theme between both Clinton and Obama is their stated commitment to much more stringent federal fuel-efficiency standards. Whether Obama's take-no-prisoners policy or Clinton's more soft-hearted approach appeals to you, at the end of the day their goals remain similar.

Tags: Industry

Posted in: News, SUVs


Comments (6 total)

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  1. By Renton #1, Posted: 5/5/2008

    Not an Obama supporter, however he is dead-on right when it comes to this.

    The other two candi-tards are pandering and selling crap.

  2. By Gus #2, Posted: 5/5/2008

    Obama thinks he can save the world, Hilary thinks she can tax it or blast it into extinction.

    No thanks.

  3. By Turkle #3, Posted: 5/5/2008

    Do the math. If the Federal gas tax of 18.4 cents was removed from each gallon of gas you purchased, it would not be that significant of a savings. We are only talking about 3 months of tax reduction for the "gas tax holiday". Do the smart thing and simply avoid driving, unless it is a totally necessary trip. Also start redefining what is necessary in your life. Oh, a trip to watch Iron Man does not count!

    Hillary and McCain are definitely pandering to voters, I hope most people can see this as being obvious.

  4. By James #4, Posted: 5/5/2008

    The more he speaks, the more Obama proves he's an idiot. It was a combination of buyer preference AND government action that drove automakers into SUVs. The old CAFE regs were rigged to be more lenient on light trucks, so these were allowed to be less efficient, while lots of people preferred these station wagons on stilts to old-fashioned cars -- for example, the Ford Explorer once sold in Camry-like numbers. So Obama's blaming Detroit catering to these buyers??? That's what smart companies do.

    Obama (all of them really) also don't know thing one about building a car. Even if Detroit was prescient and could foresee the future of gas prices, which obviously they can't, it will still take them a minimum of two years to build a new car and that quickly only if they raid the parts bin liberally; an all-new, more advanced (read, more efficient) product will take still more time.

    I can hear it now: What about diesels??? Still more government action has prevailed as our emissions standards were too stringent for diesels to match until recently. Even so, it has taken still more technology (urea injection) to solve this problem, as diesels are just too dirty for California's regulators. What about the small cars Ford and GM sell in Europe? It still takes some time to federalize these cars --if at all possible-- to meet US regulations; otherwise, the Saturn Astra would have come a lot sooner. Remember, it took GM 18 months to federalize the Aussie-built Pontiac GTO.

    As for the fed gas tax funding the Highway Trust Fund to build and support the national infrastructure, if only that was true. Congress has been raiding it like thieves and using for other purposes... no wonder it's running low. Even though suspending it is, on paper, stupid, any time we pay the gov't LESS tax that's a good thing.

  5. By lexlife #5, Posted: 5/5/2008

    No James, the more your type, the more you're an idiot. Every expert in the field, including early posters to this article agree with the Senators take on our nations gas crisis. Your free to have your opinion but few see your view.

  6. By NaBUru38 #6, Posted: 5/11/2008

    "It was a combination of buyer preference AND government action that drove automakers into SUVs." I agree with you on that, James.

    But am I allowed to agree with Obama that "the Detroit 3 were eager to take advantage of SUV sales without doing enough to research or promote fuel-efficient technologies"?

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