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Sunday, June 26, 2022

Democrats condemn Joe Biden’s call for a gas tax holiday

Democratic lawmakers are rejecting President Joe Biden’s call for tax exemptions on gas, arguing that oil companies would embezzle savings rather than pass them on to consumers.

Senator Tom Carper (D-A), Chairman of the Senate Environment and Public Works Committee, called suggestion “a short-sighted and inefficient way of helping”.

Senator Mark Warner (R-Virginia) also expressed skepticism.

“I would like to see some data and some of the states that have been trying to see if it has actually led to a total reduction in gas prices,” he told HuffPost.

Biden is calling on Congress to eliminate the 18.4 cents per gallon tax on gasoline and the 24.4 cents per gallon tax on diesel for three months. The proposal should be passed in a way that does not impact funding for road projects that rely on federal gas tax revenue, he said.

Biden is also urging more governors to suspend state gas taxes. Several Republican governors have already done so, including in Maryland, Virginia and Georgia.

The average US gas price hovered around $5 a gallon this week.

Pump issues have left Democrats wondering about their fate in the upcoming midterm elections. Vulnerable Democratic lawmakers, in particular, have been pushing for months to eliminate the federal gas tax.

“While I am encouraged that the president is now supporting a gas tax holiday, I continue to believe that we should aim to suspend the gas tax for at least the end of the year, not just for 90 days,” Senator Maggie Hassan (DN. H.) said in a statement on Wednesday.

But Senate Democrats are not the only ones skeptical of the idea. Speaker of the House Nancy Pelosi (R-Calif.) repeatedly rejected this, calling the move “very show business.”

“The scam is that oil companies don’t necessarily pass it on to the consumer… you can’t write a law that requires them to pass it on,” Pelosi said earlier this year.

Economists also argue that gas tax holidays could further exacerbate inflation. Jason Fuhrman, former chief economic adviser to President Barack Obama, said consumers are less likely to benefit from a gas tax holiday today than they were six months ago due to supply issues.

World Nation News Desk
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