End * on * End

Krugman and every other economist/analyst I’ve heard over the last few days come to the same conclusion when talking about McCain and Clinton’s proposed gas tax holiday.

Pointless and borderline pandering for votes.

Here’s Krugman’s take:

Why doesn’t cutting the gas tax this summer make sense? It’s Econ 101 tax incidence theory: if the supply of a good is more or less unresponsive to the price, the price to consumers will always rise until the quantity demanded falls to match the quantity supplied. Cut taxes, and all that happens is that the pretax price rises by the same amount. The McCain gas tax plan is a giveaway to oil companies, disguised as a gift to consumers.

And on Clinton’s plan, specifically:

The Clinton twist is that she proposes paying for the revenue loss with an excess profits tax on oil companies. In one pocket, out the other. So it’s pointless, not evil. But it is pointless, and disappointing.

And who’s the only canidate with the guts to stand up against this useless plan (even when it sounds so good at first listen)? That’s right, Obama.