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Cut gas tax? Clinton says yes; Obama, no

April 29, 2008

With the start of the vacation driving season a month away, Sen. Hillary Clinton has joined her potential presidential foe Sen. John McCain, the presumptive GOP presidential nominee, in calling for a summertime suspension of the federal gasoline excise tax.

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However, Sen. Barack Obama, who is battling Clinton for the Democratic presidential nomination, disagrees.

Obama says temporarily halting collection of the 18.4 cents per gallon wouldn’t provide much relief to drivers and would do nothing to reduce oil consumption and imports.

Environmentalists and many independent energy analysts support the Obama stance, but the New York Times reports that Clinton took advantage of the candidates’ differing excise tax perspectives, accusing Obama of "being out of touch with ordinary Americans who are
struggling to meet their mortgages and gas up their cars and trucks."

Dubya sides with Barack: Proving that politics does into create strange alliances, Dubya sided with Obama.

White House spokeswoman Dana Perino said that tax holidays and new levies on oil companies would not address the long-term problems of dependence on foreign oil.

Perino agreed that gasoline prices were "entirely too high," but added, "I think it would be disingenuous and unfortunate for American consumers for them to be led to believe that there is a short-term fix. There is not going to be one."

Read the full Times story on the gas tax and political posturing here.

And this Don’t Mess With Taxes Earth Day post takes a closer look at federal and state fuel taxes.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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