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About: Gas tax holiday     Goto   Sponge   NotDistinct   Permalink

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In United States politics, the gas tax holiday or the gas tax loophole was originally a 2008 proposal made by presidential contenders Arizona Senator John McCain and New York Senator Hillary Clinton to suspend the federal excise tax on gasoline from Memorial Day to Labor Day in the year 2008. Proponents argued that this could potentially reduce the price of gas at the pump by about 18.4 cents a gallon for regular unleaded gasoline and 24.4 cents a gallon for diesel. If it were done, it was estimated the gas tax holiday would save consumers roughly $30 over the three-month period it would be instated. However, Barack Obama and others argued that the oil companies would not significantly lower prices and would instead pocket most of the tax cut, effectively turning the cut into a tax loophol