50 Cent Gas Tax: Yet Another Misleading Bush Attack Ad

UPDATED 4.06.04
KERRY BACKED EFFORT TO STOP CHENEY GAS PRICE HIKE

BUSH FICTION: Bush Ad: Kerry “supported a 50-cent-a-gallon gas tax.”

FACT: John Kerry has never sponsored or voted for a 50 cent gas tax increase. When Sen. Charles Robb introduced legislation in 1993 that phased in a 50-cent increase, John Kerry chose not to vote for or co-sponsor this bill. (S. 1068, Introduced 5/28/93) It’s George Bush who has broken his promise to lead the way to a sustainable energy policy. His refusal to stand up to his big oil contributors has contributed to the highest gas prices in history – an effective $245 tax increase on American families and commuters.

Kerry opposed a Dick Cheney plan that would have raised gas prices by prices by $1.2 trillion and cut 400,000 jobs.

In 1986, then-Congressman Dick Cheney proposed a tax on oil that would have raised gasoline prices and laid 400,000 workers off. Despite this bill, the Bush-Cheney campaign claims that they are interested in lower gas prices and opposed to higher taxes.

Senator Kerry helped stop Cheney’s proposed gas price hike, co-sponsoring for a resolution in opposition to the plan. Even Cheney’s fellow Republican lawmakers opposed his gas price hike -- 15 Senators joined Kerry to sponsor a resolution in 1987 to stop Cheney’s bill.

Cheney Opposed Low Oil Prices

In October 1986, Cheney introduced legislation to create a new import tax that would have increased the price of oil and ultimately the price of gasoline by billions of dollars per year. On the House floor Cheney said “let us rid ourselves of the fiction that low oil prices are somehow good for the United States.” [Energy Security Policy Act of 1986, H.R.5667, introduced 10/9/86, 99th Congress 2nd Session, 132 Cong Rec E 1350, Vol. 132, No. 139; Inside Energy/with Federal Lands, 10/13/86]

Cheney Bill would Cost Consumers $1.2 Trillion

The Congressional Research Service, in coordination with staffers from the Senate Energy Committee, studied the effects of Cheney’s bill on consumers. The report states that if Cheney’s plan had been enacted in 1986 it would have cost consumers $1.2 trillion. [New York Times, 4/6/04]

Bill Would Have Led to Loss of 400,000 jobs

Senator John Heinz of Pennsylvania, a Republican, said in February 1987 that the proposals would add $1.3 billion per year to the energy costs of Pennsylvania consumers. He also cited a study done for a Federal Reserve Bank suggesting that a $5 per barrel fee would lead to the loss of 400,000 jobs nationwide and cause inflation to soar. [New York Times, 4/5/04; S.RES.97, introduced 02/03/87]

Kerry and 15 Senators from Both Parties Joined in Opposition to Cheney’s Bill

On February 3rd, 1987, John Kerry and 15 Senators cosponsored a resolution in opposition to import fees and taxes on oil, including Republican Senators John Heinz and Alphonse D’Amato. Senator Pell said that “the truth is that an oil import fee is not a good idea and would certainly not be painless for consumers. An oil import fee would impose heavy new costs on all who use oil and oil products in manufacturing and production. It would also impose higher costs on all who heat their homes with oil or use oil-generated electricity. In addition, by increasing the production costs of energy and raw materials, an oil import fee would make American manufacturers far less competitive in world markets—a situation certainly not tolerable with today's current trade imbalance. [S.RES.97, introduced, 2/3/87; 100th Congress 1st Session, Congressional Record Vol. 133 No. 16, S 1624]

Bush-Cheney Campaign Refuse to Acknowledge Cheney’s Call for Higher Taxes

When asked about Cheney’s bill to increase oil taxes, Scott Stanzel, a spokesman for the Bush-Cheney campaign, said that “President Bush and Vice President Cheney want to keep taxes low and keep the economy moving. They have proposed an energy plan that will provide for a stable, affordable and secure energy supply.”
While the Bush-Cheney campaign failed to acknowledge the higher tax and gas prices as a result of Cheney’s bill, Cheney’s office refused to comment about the bill. [New York Times, 4/5/04]


The Bush Administration is happy to use the gas tax for political purposes, but they are shamelessly misleading the American people about John Kerry’s record on cutting middle class taxes.

Here's what they're not telling you: George Bush and his Republican allies have NEVER ONCE supported lowering the gas tax on middle class families, despite the fact that Bush promised to during his 2000 campaign. Bush has submitted three budgets and passed two huge tax cuts, but the gas tax has not changed one penny under George Bush. Gas prices, on the other hand, have increased dramatically, reaching their highest level in history and taxing families by $24 billion this year alone. While George Bush campaigned on the issue, he has let the problem sit and fester so that consumers are left paying the bill. Instead of helping consumers who will pay $24 billion more for gas this year, Bush and Cheney are aiding oil companies’ record profits and increasing American dependence on foreign countries.

Bush Ad: “families would pay $657 more a year"

FACT: Bush Gas Tax Hike Has ALREADY Cost Americans $24 Billion More

On January 5, consumers paid $1.51 for an average gallon of gas. As of today – less than three months later – they’re paying $1.75 per gallon, a 24 cent increase since January. According to the Wall Street Journal, “every penny increase in a gallon of gas costs consumers $1 billion a year.” That’s a $24 billion gas tax hike this year alone.

* But that’s not all: nationwide gas prices have risen 12% since 2000, and are expected to skyrocket upward to $1.83 a gallon this summer – a 17% increase since Bush took office.

* Guy Caruso, the administrator of the Energy Information Administration told the Senate Energy and Natural Resources Committee that an average family will spend about $1,700 for gas in 2004. At today’s gas prices, this means that an average family will spend over $300 more for gas than they would have if prices were at the level they were the week Bush took office.

* Bush’s top economic advisor backs a 50 cent per gallon increase. In Fortune Magazine, Gregory Mankiw, President Bush’s Chairman of the Council of Economic Advisors, argued that a 50 cent gas tax is a necessary component of income tax cuts. He explained that “cutting income taxes while increasing gasoline taxes would lead to more rapid economic growth, less traffic congestion, safer roads, and reduced risk of global warming--all without jeopardizing long-term fiscal solvency. This may be the closest thing to a free lunch that economics has to offer.” [Fortune, 5/24/99]

Bush Ad: Kerry supported higher gasoline taxes 11 times.

FACT: Kerry Voted for 23 Million New Jobs, a Balanced Budget, and LOWER Gas taxes

* 1993 Vote balanced the budget and led to the creation of 23 Million New Jobs. The 1993 vote Bush criticizes put the U.S. back on track toward a balanced budget and fiscal discipline. The measure passed by one vote and did not receive ANY Republican support in either house of Congress. [Senate Roll Call vote, 1993, #247]. But after turning the largest surplus in history into the largest deficits ever, we can’t expect Bush to praise deficit reduction.

* REPUBLICANS opposed repealing the gas tax. Another vote Bush criticizes was to repeal the 4.3 cents gas tax. Unfortunately, it was defeated when 15 Republicans crossed the aisle to join Kerry because repealing the gas tax would be a job-killing plan -- costing up to 50,000 jobs. Republicans who also opposed the temporary suspension were from a wide range of states and ideological bents, including Pat Roberts (KS), Craig Thomas (WY), and Chuck Hagel (NE).

* George Bush counts airplane fuel as gas tax: One vote Bush uses is a vote to exempt airplane fuel from the proposed BTU tax. Keep that in mind next time you pull your 747 to the local Exxon pump. [http://thomas.loc.gov/cgi-bin/bdquery/z?d103:SP00203:]


BUSH AND GAS TAXES: Bush only cares about the gas tax during election years

In 2000, George W. Bush promised to reduce the gas tax “as a means of helping motorists cope with the sharp rise in gasoline prices.” But not one of his budgets or tax cuts have kept this promise. In fact, while families have been hurt by the highest prices in history under Bush, he has delivered far more for the wealthy and his contributors. Here is a sample of tax breaks he has delivered for the wealthy instead of keeping his promise to roll back gas taxes:

· eliminate personal income taxes on dividends

· reduce capital gains taxes on sales of corporate stock.

According to Citizens for Tax Justice, “these new loopholes would cost $364 billion over the next 10 years. In 2003, half of the tax reductions from these provisions would go to only one percent of all taxpayers, and almost three-quarters would go to the best-off five percent.”



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