In response to the $100 rebate idea, Tim says:
Now, I've already argued that the evil gas producers can't lower their prices on a whim, but the government could if they wanted to--by reducing the per gallon gas tax. Now that would be just plain silly--right?
Right, it would be silly plus stupid (i.e., "inefficient" to an economist). But, who cares in an election year (Democrats Propose ...):
Following President Bush's four-point plan outlined today, Democrats proposed legislation that would put a moratorium on the Federal gasoline tax for at least 60-days to provide consumers immediate relief at the pump. But the proposed legislation would also chop oil company tax benefits and burden refineries with unwarranted reporting requirements, making it unable to win enough support in Congress to have even a remote chance of passing.
And here is an article from the Chicago Tribune on the political reaction to gas prices this week.
