Obama Ad Misrepresents Krugman Quote To Attack Hillary

5/4/2008 1:39:14 PM

Sen. Obama has a new ad which claims that "experts" believe Hillary's plan for a gas tax holiday would "boost oil industry profits." Their citation is an April 28 column by Paul Krugman, which discusses Sen. McCain's plan, not Hillary's plan:

The impression that Mr. McCain’s tax talk is all about pandering is reinforced by his proposal for a summer gas tax holiday — a measure that would, in fact, do little to help consumers, although it would boost oil industry profits.

Hillary's plan differs from Sen. McCain's in that it is financed with a windfall profits tax on oil companies. Krugman, who does not support Hillary's plan, acknowledges that her plan will not increase profits for the oil industry.

Krugman adds: "Just to be clear: I don’t regard this as a major issue. It’s a one-time thing, not a matter of principle…Health care reform, on the other hand, could happen, and is very much a long-term issue — so poisoning the well by in effect running against universality, as Obama has, is a much more serious breach."