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MSNBC's Barnicle misrepresented Obama's comments about gas tax holiday, overstated savings

July 01, 2008 4:44 pm ET

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SUMMARY: On Hardball, Mike Barnicle said of Sen. Barack Obama's reaction to Sen. John McCain's proposal for a summer gas-tax holiday: "[P]oliticians have got to be very, very careful when they tell people living right at the margin, right at the edge, that $30 a week isn't a whole lot of money." But what Obama has said of McCain's proposal is that "[i]t would save you a total of about $28 for the entire year" -- not "$30 a week" -- and several analyses support Obama's claim.

36 Comments

During the June 30 edition of MSNBC's Hardball, MSNBC political analyst Mike Barnicle said in reference to Sen. John McCain's proposal for a summer gas-tax holiday that "it's a high-wire act for [Sen.] Barack Obama -- and he's been walking it, sort of, and he might fall off it." He added, "Bogus? Fine. Short-term solution? No problem understanding that. But politicians have got to be very, very careful when they tell people living right at the margin, right at the edge, that $30 a week isn't a whole lot of money. It's a huge amount of money for a lot of people in this country." Host Chris Matthews responded, "Right." But what Obama has said of McCain's proposal is that "[i]t would save you a total of about $28 for the entire year" -- not "$30 a week" -- and analyses by the Tax Policy Center, PolitiFact.com, and the American Association of State Highway and Transportation Officials (AASHTO) support his claim.

McCain has called for a "Summer Gas Tax Holiday" that would "suspend the 18.4 cent federal gas tax and 24.4 cent diesel tax from Memorial Day to Labor Day." A May 2 New York Times article quoted Obama commenting on the gas tax holiday proposal:

"Listen, these gas prices are brutal on people," Mr. Obama told voters Thursday in Columbia City, Ind. "Now, John McCain decided that he would solve this problem after being in Congress for 25 years by suspending the gas tax for three months. What that would do is save the average driver 30 cents a day -- a nickel and a quarter, 30 cents a day. It would save you a total of about $28 for the entire year -- $28."

On May 2, the Tax Policy Center's Eric Toder wrote, "If a gas tax holiday drives the price down by the full amount of the tax (18.4 cents), the average driver would save about $28 ($27.67) between June 1 and September 1. But we think the price would fall by only a small fraction of the 18.4 cents tax -- so instead of $28, the average driver might save $5 to $10." He continued, "Here's how we get the $28 figure:"

Average annual per vehicle gas use (from AAA) = 550 gallons

Percent of annual miles drive in June, July, and August = 27.4. Calculated from data in 2001 National Household Travel Survey.

Multiply 550 x .274 = 150.6 gallons consumed in summer months.

At 18.4 cents per gallon, this comes out to $27.71

In a May 5 fact check, PolitiFact.com wrote, "Obama's statement that a gas tax holiday 'would at best provide 30 cents a day for three months for a grand total of $28' is in line with estimates we have for average fuel consumption. The back-of-the-envelope calculation is clearly based on a few assumptions, but the assumptions are reasonable. We rate his statement Mostly True."

In a May 2 release, AASHTO said, "If the gas tax suspension did go into effect, experts estimate that the typical motorist would save $28 dollars for the summer, less than the cost of half a tank of gas." The AASHTO added: "What the tax suspension would cost the Federal Highway Trust Fund, however, is nearly $9 billion in revenues. That could be offset through transfers from the General Fund, but that would drive up the deficit by an additional $9 billion. Many question whether jeopardizing future funding for vital road and transit maintenance is worth the meager savings motorists may receive if the oil companies decide to pass on the savings through lower prices at the pump."

Later in the segment, Atlantic associate editor Reihan Salam echoed Barnicle's number, asserting that "30 bucks a week makes a big difference, but look at health care insurance premiums. That's a huge issue. Look at the price of housing. I mean -- and, you know, you look at the consumer confidence, which is at all-time lows right now. This is very rough stuff."

From the June 30 edition of MSNBC's Hardball:

BARNICLE: One of the most dangerous elements it's -- and it's a high-wire act for Barack Obama -- and he's been walking it, sort of, and he might fall off it -- is McCain's gas tax holiday proposal.

Bogus? Fine. Short-term solution? No problem understanding that. But politicians have got to be very, very careful when they tell people living right at the margin, right at the edge, that $30 a week isn't a whole lot of money. It's a huge amount of money for a lot of people in this country.

MATTHEWS: Right.

I thought Hillary won on that issue, didn't she, Reihan? I mean, it sounds like a pander, but, sometimes, people who are in trouble need somebody to pander to them.

SALAM: I think that --

MATTHEWS: -- I mean, do what they need.

SALAM: I think there's definitely something to that. But again, I mean, 30 bucks a week makes a big difference, but look at health care insurance premiums. That's a huge issue. Look at the price of housing. I mean -- and, you know, you look at the consumer confidence, which is at all-time lows right now. This is very rough stuff. And I think Mike is right to say that Barack Obama is shrewd. He understands that this stuff matters.

MATTHEWS: OK.

SALAM: And he wants to communicate. He wants to connect, but I'm not sure he is going to be able to pull it off.

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    • Author by tommy (July 01, 2008 4:55 pm ET)
         

      Obama is right on this gimmick by McCain, this silly gas tax holiday.  Good for him for not pandering the way McCain has on this.

      Good catch MMFA.

      Report Abuse
      • Author by Sueelldd (July 01, 2008 4:57 pm ET)
           
        Very true Tommy, it was nice when Obama stood up to Hillary also when she tried this joke of a proposal.
        Report Abuse
      • Author by DEMS_SOL (July 01, 2008 5:23 pm ET)
           

        "Now, John McCain decided that he would solve this problem after being in Congress for 25 years by suspending the gas tax for three months.

        Now there is some blatent misinformation right there.  Neither McCain or Hillary claimed the tax holiday would solve the problem - but beyond that Tommy, I don't disagree that the tax holiday is a bit of a gimick, but look at all the liberals whine when someone proposes taking away a little as $30 per motorist for only three months.

        Report Abuse
        • Author by foghornleghorn (July 01, 2008 5:25 pm ET)
             
          May your SUV hit a pothole and ruin its suspension due to a pothole not being fixed because your streets are not properly maintained due to a lack of adequate revenue.
          Report Abuse
        • Author by skeptical (July 01, 2008 5:28 pm ET)
             

          Dems.

          By Whine, do you mean point out the fallacy of the proposal as you just did?

          Report Abuse
          • Author by DEMS_SOL (July 01, 2008 5:41 pm ET)
               
            No - I'm pointing out that libs never consider how the taxpayer is going to come up with a little extra money whenever they want to raise our taxes, but try to take as little as $30 per motorist form their coffers and they try to scare us into believing the world will come to an end. 
            Report Abuse
            • Author by skeptical (July 01, 2008 5:42 pm ET)
                 

              Dems,

              But you said it was a gimmick, aren't you whining then?

              Report Abuse
              • Author by skeptical (July 01, 2008 5:43 pm ET)
                   

                Also Dems,

                Can you point out where a lib said something even close to what you wrote?

                Report Abuse
                • Author by DEMS_SOL (July 01, 2008 6:00 pm ET)
                     

                  My history of growing up in New York is showing.  Perhaps you can tell me why Obama does not think giving the motorist as little as $30 is not a good idea?

                  Report Abuse
                  • Author by DEMS_SOL (July 01, 2008 6:02 pm ET)
                       
                    My history of growing up in New York is showing.  Perhaps you can tell me why Obama does not think giving the motorist as little as $30 is a good idea?
                    Report Abuse
                    • Author by Kyle_Broflovski (July 01, 2008 6:20 pm ET)
                         

                      It would be a good idea, if that were what he is proposing.  He is merely proposing a suspension in the tax, not a decrease in gas price.  The demand would still be there, the price would remain high, and the tax money would be diverted to the oil companies.  Meanwhile, our roads would deteriorate, highway projects would be suspended, and people would be driving more on crappier roads, causing your insurance rates to rise as well.

                      Maybe you need to take an econ 101 course, or learn something about the social costs of driving on public roads, but it sounds like you've swallowed McCain's (and Hillary's) gimmick hook, line, and sinker.

                      Report Abuse
              • Author by Kyle_Broflovski (July 01, 2008 5:45 pm ET)
                   
                It's not whining when DemSol does it, he's a proud American giving some constructive criticism, not an evil, America-hating liberal who wants to bleed hard working blue-collar Americans dry with taxes.
                Report Abuse
              • Author by DEMS_SOL (July 01, 2008 5:53 pm ET)
                   

                I believe it is a gimick in that it sounds big but overall delivers little to the average individual.  This is a long term problem and sometimes gimmicks are a good idea - it will make people realize their government is doing what little it can to make an immediate impact.  There are many people who's work depends on driving long distances daily - this would be a big benefit to them.

                Whining is say it shouldn't be done because government cant afford it because the highway system will go to hell in a handbasket.

                Report Abuse
                • Author by dbeden4153 (July 01, 2008 6:13 pm ET)
                     

                  Alright, how about the gas tax holiday would increase demand for gas, boosting prices and effectively negating any savings to the consumer.

                  So you wouldn't have a break in prices, AND our nation's roads and highways would fall into disrepair.

                  AND those jobs in the road construction industry would not be created, which would be a net plus in job creation and tax revenue.

                  Report Abuse
                  • Author by DEMS_SOL (July 02, 2008 9:18 am ET)
                       
                    You too have reinforced my point about liberals and taxes.
                    Report Abuse
                    • Author by Kyle_Broflovski (July 02, 2008 11:43 am ET)
                         
                      Just as you have confirmed what we all know about trolls and Republican talking points.
                      Report Abuse
            • Author by skeptical (July 01, 2008 5:49 pm ET)
                 

              Finally Dems,

              This article is not about raising taxes, it's about the gas tax "gimmick".  Please try to stick witht he subject at hand.

              Report Abuse
          • Author by Kyle_Broflovski (July 01, 2008 5:41 pm ET)
               

            ...also - when you say 'liberal' do you mean 'anyone with a brain'?

            Report Abuse
            • Author by DEMS_SOL (July 01, 2008 5:56 pm ET)
                 
              I tend to favor Winston Churchill's definition of the liberals as those without brains.
              Report Abuse
              • Author by friedbergboy1422 (July 01, 2008 6:16 pm ET)
                   

                Except that quote has never been substantiated and the Churchill Center doesn't believe it came from their man either:

                "Conservative by the time you're 35"
                "If you're not a liberal when you're 25, you have no heart.  If you're not a conservative by the time you're 35, you have no brain." There is no record of anyone hearing Churchill say this. Paul Addison of Edinburgh University makes this comment: "Surely Churchill can't have used the words attributed to him. He'd been a Conservative at 15 and a Liberal at 35!  And would he have talked so disrespectfully of Clemmie, who is generally thought to have been a lifelong Liberal?"

                 

                http://www.winstonchurchill.org/i4a/pages/index.cfm?pageid=112

                Report Abuse
    • Author by JLyons (July 01, 2008 5:03 pm ET)
         
      Barnacle should know better than this, but I never bought his act before
      Report Abuse
    • Author by dbeden4153 (July 01, 2008 5:03 pm ET)
         

      This is just like David Brock's recent sham of an article entitled "Obama's money class."

      Go ahead, read it, and then find out why David Brooks is full of s**t.

      Report Abuse
    • Author by cArn (July 01, 2008 5:19 pm ET)
         

      DB, thanks for the links. I especially loved what Jesse had to say about Brook's "revelation":

      "It’s not even that Brooks completely cherrypicked his data, it’s that he cherrypicked the wrong f****** data to make a point that can’t possibly stand...From now on, my retirement plan isn’t saving or investing.  It’s figuring out how to be insipid enough to land on the New York Times’ Op-Ed page without wandering out into traffic first."

      Report Abuse
    • Author by cArn (July 01, 2008 5:35 pm ET)
         

      but look at all the liberals whine when someone proposes taking away a little as $30 per motorist for only three months.

      What an utterly dismissive remark. There are very legitimate arguments for why the gas tax should not be repealed--which I assume you agree with because you called it a gimmick--but you choose to label the liberals who also oppose it as whiners.

      "What the tax suspension would cost the Federal Highway Trust Fund, however, is nearly $9 billion in revenues. That could be offset through transfers from the General Fund, but that would drive up the deficit by an additional $9 billion. Many question whether jeopardizing future funding for vital road and transit maintenance is worth the meager savings motorists may receive if the oil companies decide to pass on the savings through lower prices at the pump."

       

      Report Abuse
      • Author by snoopy (July 01, 2008 6:17 pm ET)
           

        He has no clue. Those taxes go toward fixing roads and bridges among other things. You'd think having a few fall down would clue someone in that we need that resource?

        What I find unfair is in addition to gas taxes I have to pay $500 per year per vehicle in road usage taxes for every semi rig I have on the road. I also have to pay $1500 per year per vehicle for apportioned tags. These right wingnuts want to defend $30 a year for individuals but haven't yet uttered a sound about what us small business owners are suffering with because of high gas prices. Diesel is supposed to be cheaper to produce but costs more than regular? Where's the cons on that issue?

        Report Abuse
    • Author by unhipcat (July 01, 2008 5:56 pm ET)
         

      McCain Proposes Largest Gas Tax Hike in U.S. History
      If Sen. John McCain has his way, American consumers will be subjected to the largest gas tax increase in U.S. history, an unnamed non-official said today. If McCain's plan is accepted, U.S. consumers will face an 18.4 cent per gallon increase in federal gas tax immediately after Labor Day.
      "Wow, today's federal gas tax is 18.4 cents per gallon," said a clueless SUV driver, "and McCain wants to increase whatever the tax will be on Labor Day by 18.4 cents per gallon? That's like a 100 per cent increase or something. That's crazy." The confused driver then tried unsuccessfully to explain how this perception is completely different from the view that allowing President Bush's tax cuts for the wealthy to expire is a huge tax increase for the middle class.

      Report Abuse
    • Author by shaggles (July 01, 2008 7:10 pm ET)
         

      Apparently arithmatic is not Barnicle's strong suit.  Or could he be (gasp) lying???? 

      Report Abuse
    • Author by joseph_b26 (July 01, 2008 7:56 pm ET)
         

      Isn't This Interesting

       

      During the primaries, one of my biggest concerns about Chris Matthews' support for Barack Obama was it would change. I made the claim over and over again that as soon as Hillary Clinton was knocked off her front runner status, Matthews would turn on Obama to support John McCain.  

      At the time I made the claim noted above, I was also concerned the influence associated with Matthews' involvement amounted to  unfair manipulation in the Democratic primary process. Check it out, I was not the only one making this claim. There were many Hillary Clinton supporters making this prediction. 

      The primaries are over, and Matthews, along with the MSNBC political commentators, are slowly making full circle with their influence.For the most part, John McCain enjoys a free pass from the media. Every news story involving McCain is slanted in his favor. The pollsters have contributed with this right-wing attempt to seat another Bush type president in office. Gallup has created this conservative group of pollsters who now control the averages. You will often see polls from Gallup pared with CNN or USAtoday. So, you see a Gallup poll, then a Gallup/CNN poll, then a CNN polll, then a CNN/USAtoday poll, and so on. They all report McCain's numbers closer to Obama. When a pollster outside of this conservative influence releases a poll, Obama leads is much higher.

      I encourage those who see this dynamic in action to define its manipulating deceptive nature. They need to do this over and over again. At some level, a didactic attack may counter the endless exposure the media enjoys.  Whatever happens, we must not forget what went down. A reality is a reality.

      The one thing the conservative media, Chris Matthews included, did not gage correctly: Barack Obama is much more then they thought he would be. Although they made their objective, they made no ground. In fact, they may have manipulated themselves into a sound butt whipping. Obama is no joke.

       

      Joseph 

      Report Abuse
    • Author by oscar the grouch (July 01, 2008 9:31 pm ET)
         
      At yet the other day, I heard that Obama said we need another round of stimulus, something on the order of $1000 (instead of the $600 that not all of us have received yet). To heck with $30 of gas tax refund, I want the $1000 to go with the soon to receive, I hope, $600.
      Report Abuse
      • Author by Col. Harlan Sanders (July 02, 2008 1:20 am ET)
           

        At yet the other day, I heard that Obama said we need another round of stimulus

        Geez Oscar, you guys get mad when he orders Orange juice instead of coffee, then you slam him for suggesting another round of java .Step out of your derision dinette once in a while. 

        Report Abuse

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