Saturday, October 1, 2022

Democrats Pan Joe Biden’s Call for a Gas Tax Holiday

Democratic lawmakers are pushing back on President Joe Biden’s call for a gas tax holiday, arguing that oil companies will pocket the savings rather than pass them on to consumers.

Sen. Tom Carper (D-Del.), Chairman of the Senate Committee on the Environment and Public Works, called the proposal is a “short-sighted and inefficient way of providing relief.”

Sen. Mark Warner (D-Va.) Also expressed skepticism.

“I would like to see from the data and some of the states that tried it, whether it really led to fully lower gas prices,” he said in an interview with HuffPost.

Biden insists that Congress approve a three-month suspension of the 18.4 cents per liter tax on gasoline and the 24.4 cents tax on diesel. The proposal should be implemented in such a way that it does not affect funding for road projects that rely on federal gas tax revenue, he said.

Biden is also calling for more governors to suspend their state gas taxes. Several Republican governors have already moved to do so, including in Maryland, Virginia and Georgia.

The average price of gas in the US fluctuated around $ 5 per liter this week.

The pain at the pump caused Democrats to roar over their fates in the upcoming midterm elections. Particularly vulnerable Democratic lawmakers have been insisting on a federal gas tax holiday for months.

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

But Senate Democrats are not the only ones skeptical of the idea. House Speaker Nancy Pelosi (D-California) has repeatedly denied this, calling the move “a lot of showbiz”.

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

Economists have also argued that a gas tax holiday could make inflation even worse. Jason Furman, a former top economic adviser to President Barack Obama, said consumers today are less in a position to benefit from a gas tax holiday than they were six months ago due to supply issues.

Nation World News Desk
Nation World News Desk
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