Thread: Yes, we can.
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Old 05-04-2008, 10:23 AM   #5
Alex
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Yes, it was a very good interview though I think he muffed the Iran/Israel question a bit.

On the tax holiday question I think he needs to modify that answer a bit and give it great prominence. So far I had mostly seen him trying to explain the economics of why a tax holiday isn't really of any short term value and has short term negatives. Instead he should essentially say, "experience is an issue that keeps coming up and experience has taught me the answer to this question. Back when gasoline was a shocking $2 a gallon we had this same idea in Illinois. And the economists said it wouldn't work and we politicians gathered together and decided that it would and passed a holiday on the Illinois gas taxes. And you know what? The economists were right, the price of gas just rose to cover the tax holiday BECAUSE THAT IS WHAT MARKETS DO and we simply transferred that money from the state highway coffers to the retail gas station owners. That is why I don't support a federal tax holiday. It is an idea born out of good intent but it won't work, it hasn't worked in the past, and the damages can be huge."

(Though, obviously, it would have to be shorter.)
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