RNC: Why Does Barack Obama Continue To Distort His Own Record And The Facts On Gas Tax Relief For Americans?

To: POLITICAL EDITORS

Contact: Republican National Committee, +1-202-863-8614

WASHINGTON, April 29 /PRNewswire-USNewswire/ — The following release was issued today by the Republican National Committee:

Americans Continue To Confront High Fuel Prices:

Today, April 29, 2008, The Average Price For A Gallon Of Regular Gasoline Is Over $3.60.(AAA Website, www.fuelgaugereport.com, Accessed 4/29/08)

The Average Price For A Gallon Of Regular Gasoline In Indiana Is Over $3.61.(AAA Website, www.fuelgaugereport.com, Accessed 4/29/08)

The Average Price For A Gallon Of Regular Gasoline In North Carolina Is Over $3.59.(AAA Website, www.fuelgaugereport.com, Accessed 4/29/08)

Truckers Protested High Fuel Prices Yesterday In Washington, D.C.”As angry truckers encircled the Capitol in a horn-blaring caravan and consumers across the country agonized over $60 fill- ups, the issue of high fuel prices flared on the campaign trail on Monday, sharply dividing the two Democratic candidates.” (John M. Broder, “As Clinton Seeks Gas Tax Break For Summer, Obama Says No,” The New York Times, 4/29/08)

Sen. John McCain Has Proposed Immediate Gas Tax Relief, Which Would Save Americans Over $6 Billion:

Sen. John McCain’s Gas Tax Relief Would Last From Memorial Day To Labor Day.”Hard-working American families are suffering from higher gasoline prices. John McCain calls on Congress to suspend the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day.” (John McCain For President Website, www.johnmccain.com, Accessed 4/22/08)

“A USA TODAY Analysis Showed That McCain’s Gas-Tax Proposal Could Save Motorists $6.8 Billion In Taxes During The Summer.”"(Kathy Kiely, “Gas-Tax Holiday Among McCain’s Plans For Economy,” USA Today, 4/16/08)

OBAMA DISTORTION: Obama Distorted Sen. John McCain’s Gas Tax Relief Plan:

Obama Distorted Sen. McCain’s Gas Tax Relief Plan, Claiming That There Will Not Be Any Funding For The Highway Trust Fund.Obama: “He doesn’t explain how it is that we are going to replace the highway trust fund — that’s where your gasoline tax goes, to rebuild roads and bridges and put people back to work right here in North Carolina.” (Perry Bacon Jr. and Peter Slevin, “Clinton Joins McCain In Criticizing Obama On Gas Tax.” The Washington Post’s “The Trail” Blog, blog.washingtonpost.com, 4/28/08)

Sen. John McCain Has Already Said That Any Shortfalls In The Highway Trust Fund Would Be Offset By General Budget Revenues:

Any Shortfalls In The Federal Highway Trust Fund From The Gas Tax Holiday Would Be Offset By General Budget Revenues.”McCain policy adviser Douglas Holtz-Eakin, in a conference call yesterday with reporters, said any shortfalls created in the Federal Highway Trust Fund, which is supported by the fuel taxes, would be offset by general budget revenues.” (Brian C. Mooney, “McCain Calls For Summer Holiday From Gas Tax,” The Boston Globe, 4/16/08)

OBAMA DISTORTION: Obama Called Immediate Gas Tax Relief A “Scheme” And A “Bad Idea”:

Obama Called Gas Tax Relief A “Scheme.”"Mr. Obama has previously dismissed Mr. McCain’s proposal as a ‘scheme.’ ‘Half a tank of gas,’ Mr. Obama told his audience. ‘That’s his big solution.’” (John M. Broder, “As Clinton Seeks Gas Tax Break For Summer, Obama Says No,” The New York Times, 4/29/08)

Obama Called Gas Tax Relief A “Bad Idea.”"Earlier Monday at a community college in the Philadelphia suburbs, Obama rejected a tax holiday as bad economic policy. ‘I’ve said I think John McCain’s proposal for a three-month tax holiday is a bad idea,’ Obama said, warning consumers that any price cut would be short lived before costs spike back.” (Nick Timiraos, “Clinton Joins McCain On Gas-Tax Holiday,” The Wall Street Journal’s “Washington Wire” Blog, blogs.wsj.com, 4/21/08)

But In March 2000, Obama Voted For The Temporary Elimination Of The State Sales Tax On Gas:

As A State Senator, Obama Voted To Suspend The State Sales Tax On Gasoline. (S.B. 1310: Senate Third Floor Reading, Passed, 50-0-6, 3/ 8/00, Obama Voted Yea)

The State Of Illinois Suspended Its Five Percent Sales Tax On Gasoline. “After a whirlwind legislative session, Gov. Ryan signed legislation Thursday that suspends the state’s 5 percent sales tax on gasoline. If that is passed on to consumers, fuel prices would drop by about a dime per gallon.” (Dave McKinney and Fran Spielman, “Ryan Signs Suspension Of Gas Tax,” Chicago Sun-Times, 6/30/00)

Obama Said He Supported The Gas Tax Suspension Due To The “Huge Hike” In Gas Prices. Obama: “I originally voted for the suspension because I thought that it was extraordinary circumstances, given the huge hike in prices, but I don’t think that we have the evidence yet to make this a permanent three-hundred- or four-hundred-million- dollar hole in the General Revenue Fund.” (Sen. Barack Obama, State Of Illinois 91st General Assembly Regular Session Senate Transcript, 11/15/00, www.ilga.gov, pp. 51-52)

And The Temporary Gas Tax Relief That Obama Voted For In The State Senate Helped Consumers:

In 2000, Gas Prices Suddenly Dropped Between 8 And 10 Cents A Gallon Overnight When The Tax Suspension Went Into Effect. “When the tax suspension went into effect July 1, the change in price was obvious, as prices suddenly dropped between 8 and 10 cents a gallon overnight.” (Karen Mellen and Ray Long, “As Gasoline Prices Drop, Tax Debate Continues,” Chicago Tribune, 7/20/00)

AAA Attributed Part Of The Decline In Gas Prices To Illinois’ Temporary Suspension Of Its Gas Tax. “The price of gasoline in Illinois dropped 40 cents since its peak this summer, according to the latest survey Wednesday, a record decrease for one month. … The AAA credited both states [Illinois and Indiana] for temporarily suspending their five percent sales tax on gasoline, and on an increased supply of cleaner-burning reformulated gas.” (Robert McCoppin, “State Gas Prices Set Record One-Month Decline,” Chicago Daily Herald, 7/19/00)

AAA Chicago Motor Club’s Steve Nolan: “The Temporary Repeal Of The State Gas Tax Has Helped [With Gas Price Drop]…”(Robert Manor, “Illinois Finds Dramatic Relief At Gas Pump,” Chicago Tribune, 8/17/ 00)

The Decline In Gas Prices Was “Aided By The Suspension July 1 [2000] Of The State’s 5 Percent Sales Tax On Gasoline.”"State legislators had called for the hearings as pump prices soared well above $2 a gallon. The recent decline — aided by the suspension July 1 of the state’s 5 percent sales tax on gasoline — took some of the political expediency out of the hearings.” (Courtney Challos, “Legislators Now Irked Over Falling Gas Prices,” Chicago Tribune, 7/ 13/00)

Obama Jokingly Wanted A Sign On Gas Pumps Acknowledging He Lowered His Constituents’ Gas Prices:

Sen. Frank Watson (R-Greenville, IL): “This amendment [Amendment No. 3 to H.B. 3873] was discussed in the Executive Committee. We did not adopt it at the time, but it was kind of an agreement that this would be sent out to the Floor without any discussion — or, without going to committee. And it would require the State of Illinois and the Department of Agriculture to place on a — gasoline pumps the language that the State portion of the State tax on motor fuel and gasohol was eliminated by Public Act whatever, and that it was effective January 1st, 2001.” (Sen. Frank Watson, State Of Illinois 91stst General Assembly Regular Session Senate Transcript, 4/15/00, www.ilga.gov, p. 80)

Obama: “I wasn’t clear on — on the response to the question, but are — if the gas tax isn’t going anywhere, what happens to this [amendment]?” (Sen. Barack Obama, State Of Illinois 91st General Assembly Regular Session Senate Transcript, 4/15/00, www.ilga.gov, p. 81)

Sen. Watson: “This is part of the gas tax language. This — this is part of the reduction of the sales tax on gasoline. So if the gas — if that passes, this is an amendment to it, and it would require that petroleum marketers have to put a sign on their pumps that this did, in fact happen.” (Sen. Frank Watson, State Of Illinois 91st General Assembly Regular Session Senate Transcript, 4/15/00, www.ilga.gov, p. 81)

Obama: “I was wondering, can I — in my district, can I have ‘Senator Obama reduced your gasoline prices’? Is that possible?” (Sen. Barack Obama, State Of Illinois 91st General Assembly Regular Session Senate Transcript, 4/15/00, www.ilga.gov, p. 81)

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SOURCE Republican National Committee

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