Will a tax holiday for gas users this summer allow the oil companies to raise their prices and make more?

Thereby increasing their profits for the summer so that they can exceed earings expectations? Is this the next step before another stimulus package?Will a tax holiday for gas users this summer allow the oil companies to raise their prices and make more?
The Gas Tax Holiday is a terrible idea. Oil companies will just raise prices again to the pre-holiday level and they will get more profits. Not only that, but the federal government will lose billions in road infrastructure money. It's a lose-lose situation. Seriously, who comes up with these ideas?!Will a tax holiday for gas users this summer allow the oil companies to raise their prices and make more?
The shortfall in revenue from suspending the gas tax will be made up with a new profit tax on oil companies. If they raise the prices they increase profits and pay more taxes.


Also, if oil companies raise prices congress will investigate them on price gouging charges and that would be more expensive than any profit they could make in a couple months.
A tax holiday on gasoline is pandering to voters. If we really want to hurt the oil companies (Isn't that what we want?), we should raise the taxes on oil to European standards, say $4 per gallon! THEN, you will see some real conservation, and you will see the oil company executives suffer. Not only that, the Middle East producers will suffer too. How about it?
Economists generally think that the gas tax holiday is a bad idea. The benefits will go to the oil companies, not the consumer.





See my source:
No. Everyone conveniently leaves out the principals of supply, demand and competition when discussing oil prices.





ADD: To those who take Chuck Shumer's word that our infrastructure will suffer with a tax holiday, I say, consider the source.
I think all the people who think it's a terrible idea should continue to pay the tax and those of us who want the tax break get lower prices.
if these kinds of idiotic policies are what hillary and mccain have in store for us, then clearly Obama is our savior
Buy a horse