* Daniel Nasaw in Washington
* guardian.co.uk,
* Monday May 5 2008
4.30pm BST / 11.30am ET
Hillary Clinton's campaign said this morning that aggressive investigation and supervision of oil companies would ensure consumers reap the benefit of her proposed gasoline tax holiday this summer.
In a conference call with reporters, Clinton officials sought to address criticism among economists and her rival Barack Obama that an 18.4-cent gasoline tax break this summer would do little to help Americans cope with rising fuel prices.
The gasoline tax holiday has emerged as a policy distinction between the two candidates, and Clinton in recent days has promoted it in an effort to win over working-class voters hard hit by rising fuel prices. Obama dismisses the idea as an unworkable political pandering.
Aides to the New York senator today dismissed concerns the tax break could in fact increase fuel demand, dampening its effect on consumers' wallets, saying the suspension would make necessary driving more affordable without encouraging "joy-riding".
"The reality on the ground is different from the economic theory," said Geoff Garin, a top Clinton strategist and pollster. "Most of the driving people are doing is a matter of necessity," such as commuting and taking children to school. "The idea that all of a sudden we are going to drive up demand misses the reality of people's lives."
Clinton aides also unveiled a new attack on Obama, pointing to conflicting statements the Illinois senator made on federal oversight of a corruption-tinged labour union.
The Wall Street Journal reported this morning that Obama promised leaders of the powerful Teamsters Union that he would ease oversight of the group. Since 1992 an independent review board of the US justice department has investigated corruption within the 1.4m-member syndicate.
Teamsters officials say the influence of organised crime has declined and maintain the board is an unnecessary burden. Earlier this year, Obama won the union's endorsement after privately telling its leadership he supported ending the board, the Wall Street Journal reported.
But on ABC's Good Morning America program this morning, the Illinois senator backed away from that stance.
"I wouldn't make any blanket commitments," he said. "What I've said is, is that we should take a look at what's been happening over at the Teamsters and at all unions to make sure that, in fact, you know, organized labour is able to represent its membership and engage in collective bargaining."
When pressed, he said, "I would examine what is going on in terms of the federal oversight that's been taking place, but it's been in place for many years, the union has done a terrific job cleaning house, and the question is whether they're going to be able to get treated just like every other union, whether that time has come."
The Clinton campaign leaped on the change in tone this morning, with spokesman Phil Singer calling on Obama to clarify "what his actual position is".
The comments came on the last day of campaigning before voters head to the polls in crucial primary elections in North Carolina and Indiana.
Clinton must win Indiana by a comfortable margin and keep North Carolina close in order to avoid pressure to withdraw from the race. Her aides this morning sought to manage expectations, noting foremost that Clinton has gained ground in polling in both states over the past month, and adding that Obama has outspent her in Indiana.
An aggregate of recent polling by website RealClearPolitics.com has Clinton leading in Indiana by 4.6 percentage points, while Obama leads in North Carolina by 6.5 points.
Obama on CBS's Early Show this morning continued to press Clinton on the gasoline tax holiday, accusing her of "pretending to do something with a suspension of the gas tax that at best would provide 30 cents of relief for $28 of total savings; more likely would simply fatten the oil companies who are already making record profits because they wouldn't pass on the savings to consumers.
"And what I've said is we need is a real, meaningful tax stimulus, put more money into people's pockets and pass permanent tax relief at the same time as we're investing in alternative fuels and renewable energy."
Republican candidate John McCain also supports suspending the gasoline tax for the summer, and Obama has referred to the proposal as "McCain-Clinton gas tax gimmick".
Criticism of the holiday seems to have taken hold: in a CBS News/New York Times poll released yesterday, 49 percent of voters said they thought lifting the gas tax for the summer was a bad idea. Only 45 percent thought it was a good idea.
The tax holiday would cost federal government coffers roughly $9bn, ear-marked for infrastructure needs.
Clinton, unlike McCain, proposed a tax on oil companies to make up the lost revenue.
"Ours is fiscally responsible," said Clinton spokesman Howard Wolfson. "We don't believe, as Senator Obama believes, that consumers ought to pay the gas tax this summer."
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