McCain Endorses Neely Economic Stimulus Plan!

John McCain, speaking in Pittsburgh on April 15, TAX Day as it is widely known, announced his economic plan.
His plan, as he enumerated it, consists of mostly minor remedies of dubious value and making the Bush tax cuts for the wealthy permanent.
However there was a new wrinkle there, he proposed that the federal government should put in place a federal tax holiday for the three summer months.
He called for a suspension of the 18.4 cent federal gas tax and
24.4 cent diesel tax from Memorial Day to Labor Day.
He also called for the United States to stop increasing the Strategic Petroleum Reserve which he says would diminish the demand for oil and reduce prices. The part about using the reserves to reduce the price of oil is the one of his more dubious ideas.
But the gas tax holiday is a great idea.
This an idea I had myself last January. My plan would have had the states put in place a similar gas tax holiday. I sent the idea to most of the major U.S. newspapers, TV political commentators, our local daily newspaper, the Democratic National Committee, many senators, congressmen and state representatives and just about anyone i thought might be interested. I had no replies from any of them.
I sent my idea to the editor of our local independent newspaper We The People and the online progressive newsletter We Magazine. Both of these publications printed it.
Here is my article:

Thursday, January 17, 2008
An Idea For A Quick Cash Infusion Into A Sick Economy

By Dicky Neely

Fed Chairman Ben Bernanke was on TV today sounding a cautious note. "Recently, incoming information has suggested that the baseline outlook for real activity in 2008 has worsened and that the downside risks to growth have become more pronounced…I agree fiscal action could be helpful in principle,” said Bernanke.
Many economists, in and out of government, are much less optimistic than Bernanke and either forecast impending recession or say we are beginning one already. Nearly all are in agreement the economy is in need of a quick fix of cash, out in circulation, buying and selling things.
Many ideas are being floated such as rebates and, of course, tax cuts.
So far the type of tax cuts most favored by the Bush administration are income tax cuts which have primarily benefited the upper levels of income. Some studies indicate little of that money found its way directly into the economy.
There is a way to make a tax cut that will have a nearly instant impact and will also immediately work to bring down inflation.
The Federal and State governments could declare a gasoline tax holiday for an indefinite period. This would result in an immediate result, the first time someone fills their tank they would save a considerable amount, The average savings would be around 42.8 cents per gallon. That would add up, if you bought ten gallons that means $4.28 that stays in your pocket. (These price figures are from a website, http://www.gaspricewatch.com/usgastaxes.asp and are from 2005, updated figures would likely mean a higher savings.) This would require no new bureaucracy, no applications, no forms, no paper work and would keep your money right in your own pocket to do with it what you will.
If the gasoline tax vacation was continued for, say, six months or more it would likely have a huge, beneficial effect on inflation.
This is a simple, doable idea and one well worth considering.