Video: Obama explains problem with gas tax holiday
It was nice to watch Tim Russert actually spend some time focusing on real issues this morning, as opposed to asking Barack Obama an endless number of questions about Jeremiah Wright. During a portion of the full hour on Meet the Press, they discussed the proposed gas tax holiday. Obama explained that a short-term repeal of the gas tax would only cause demand to go up, meaning that the price would go up anyway and offset any money that consumers save. And as demand increases, that leads to shortages and long lines. Also, the gas tax takes money away from highway construction, which would lead to job loss.
Here is Obama: