All three presidential candidates have different economic solutions. And, as the economy continues to dominate headlines (and cause worries about individual personal finances), the candidates continue to roll out economic proposals. One proposal that is getting a lot of buzz right now is the so-called gas tax holiday.

Hillary Clinton and John McCain are both saying that a gas tax holiday would help ease personal finances. After all, it would make gas cheaper. But would it, really? Consumerism Commentary points this out about the gas tax holiday:

Ignoring the fact that when a tax holiday is in practice, gas prices might simply rise to negate the savings and match what consumers are willing and able to pay, the 18.4 cent theoretical reduction in a gallon of gas will be almost invisible. With a gallon of gasoline around $3.60 for me here in New Jersey, this 5% discount doesn’t even bring the price down to its level from a few months ago.

So, in practice, a gas tax holiday doesn’t really help your personal finances. But it would help the Big Oil companies. They’d be able to make even bigger profits, since they would be able to keep gas prices at a level that Americans have so far proved they are willing to pay. Big Oil already enjoys tax subsidies and breaks from the government. Does the industry really need another way to increase its multi-billion dollar profits?

Besides, as Barack Obama points out, a gas tax holiday would decrease the amount of money that is available to pay for road improvements. And our infrastructure in the road department already has issues.

Bottom line: A gas tax holiday might grant you enough room in your personal finances to buy another gallon of milk plus a dozen eggs, but it won’t make that big of a difference.

image credit: IvoShandor

We’ve been looking at what different presidential candidates have to offer in terms of economic plans. As the lone remaining Republican contender, it is no surprise that John McCain offers ideas that are different from the two remain Democratic candidates. He does have some interesting ideas, especially this idea that government deficit spending should be stopped. I like the idea of fiscal responsibility, but I’d like to see it achieved by other means, I think.

Basics of economic plans offered by John McCain

• No universal health care here. Instead, McCain proposes that a refundable tax credit be offered to help offset the costs of health care and health insurance.
• Crusades against “special interests.” Thinks too much money is wasted on interests that don’t need it. Would save money by cutting funding to special interests.
•  Also plans to save money by making other cuts. He’s not too specific on these, since we probably wouldn’t like them.
• McCain would stay in Iraq “until the job is done.”
• Supports job training for Americans so that they can find new jobs when outsourcing continues to take work overseas.

What do you think of economic plans offered by John McCain?
Other posts in this series:

Barack Obama

Hillary Clinton 

For the next three days, we are going to look at what the presidential candidates have to offer in the way of economic plans. The idea, of course, is to give you an idea of what the three top contenders offer in terms of trying to save the economy. Today: Hillary Clinton.

Economic plans from Hillary Clinton

The basics:

• Save money by taking away subsidies for oil firms and drug companies. I assume the continued preferential tax treatment given to large, profitable Wall Street firms would also be in question.
• Overhaul credit card regulations to limit sudden rate hikes and high fees.
• Retirement savings plans that include incentives and tax credits for those in the lower and middle economic classes.
• Universal health care. This plan is a private-public effort that requires Americans to get insurance through a private plan or a public plan. The health care plan options now available to members Congress would be available to all Americans. This sounds a great deal like the great health care plan options available in Massachusetts.

What do you think of the economic plans offered by Hillary Clinton?