and then he grew up, became a U.S. Senator, and realized how stupid an idea it was.
Obama Voted For A Gas Tax Holiday Which Required That Gas Retailers Had To Indicate That Retailers Post On The Pump That "The Price On This Pump Should Reflect The Elimination Of The Tax," Which Obama Specifically Called Attention To In The Press. Obama voted in favor of amending the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. The bill provided that beginning October 1, 2000, the tax imposed by the Acts on the sale of motor fuel and gasohol shall be reduced to 1.25% from the rate of 6.25%. The bill provided for the reversion of the rate to 6.25% if a certain tax revenue growth is not attained. Within 14 days after the effective date of this amendatory Act of the 91st General Assembly, each retailer of motor fuel and gasohol shall cause the following notice to be posted in a prominently visible place on each retail dispensing device that is used to dispense motor fuel or gasohol in the State of Illinois: ‘As of July 1, 2000, the State of Illinois has eliminated the State's share of sales tax on motor fuel and gasohol through December 31, 2000. The price on this pump should reflect the elimination of the tax.' The notice shall be printed in bold print on a sign that is no smaller than 4 inches by 8 inches. The sign shall be clearly visible to customers. Any retailer who fails to post or maintain a required sign through December 31, 2000 is guilty of a petty offense for which the fine shall be $500 per day per each retail premises where a violation occurs. Chicago Defender reported, "Obama (D-13th) said the bill gives customers needed temporary relief from high gas prices. ‘Gas retailers must post on each pump a statement that indicates that the state tax has been suspended and that this temporary elimination of the tax should be reflected in the price per gallon of gas,' said Obama." (91st GA, SB 1310, 3/8/00, 3R P; 50-0-6 (BO: Y); PA 91-0872, 6/29/00; Chicago Defender, 7/1/2000)
Obama Voted Against Permanently Eliminating Illinois' Gas Tax, Saying That The Temporary Elimination Of The Tax Had "Not Been Passed Onto The Consumer." In 2000, Obama voted against a bill to make permanent the elimination of the State's portion of the tax on motor fuel and gasohol (now, the tax reverts to 6.25% on January 1, 2001). Obama said on the floor that there was an organization called "the Illinois Tax Accountability Project, that is in the process of trying to track the gap between wholesale prices and prices at the pump during the period since we took this – we removed this tax, and what they have found so far –and the study is not yet complete, but apparently it appears that any decline in prices at the pump have been perfectly matched by declines at the wholesale level...That would indicate, at least at this point, that the elimination of the tax has not been passed on to the consumer." (91st GA, SB 1867, 11/15/00, 3R P; 46-12-0; Session Sine Die, 1/9/01)
Ø 2001: The Hill Noted Illinois' Experiment With Gas Tax Repeal Had Failed In Article About Calls For Gas Tax Cut. "Even though Dick Morris overlooks the fact that a bipartisan Senate voted against cutting the federal gas tax three times in 2000 ("Gas tax is the real tax cut issue," May 23), here are 10 good reasons why cutting the gas tax remains a bad idea this year: 1. The federal gas tax, unchanged since 1993, has nothing to do with the increase in gasoline prices in 2001; 2. The federal government cannot guarantee that gas prices would drop at the pump with a tax suspension. Temporary state gasoline sales tax repeals in Illinois and Indiana last summer offered little relief for motorists. The average price of gasoline in both states continued to increase during the period the tax cuts were in place - about 20 cents per gallon; 3. If the savings were passed on to motorists, what happens when the suspension is lifted? Americans would experience, in one day, the largest spike in the price of gasoline - 18.4 cents per gallon - in U.S. history. Think of the outrage that would cause; 4. Suspending the federal gas tax places billions of dollars in future funding for state highway and mass transit programs at risk. Uncertainty about the federal government's financial commitment will disrupt state programs, jeopardizing several hundred thousand American jobs." (The Hill, 5/30/010)
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