I’m not a fan of the McCain “gas tax holiday” idea, but…
One of the criticisms is that the oil companies will simply eat the savings rather than pass it on to the consumers.
My question: if this is the case, why is it that differing gasoline taxes result in differing prices between states? Why don’t oil companies in Missouri charge the same for gasoline as the do in California, and take in the rest as profit?
And how would whatever reason posited for the above not apply to a gas tax holiday?
I suspect there’s a good answer, but I don’t know it.
