Biden Keeps Hope Of Federal Gas Tax Holiday Alive As Fuel Prices Continue To Skyrocket

Biden Keeps Hope Of Federal Gas Tax Holiday Alive As Fuel Prices Continue To Skyrocket

After months of climbing , Americans may possibly see a federal on the horizon. However, simply putting a Band-Aid on a dire situation is not a solution.

With all major stock markets entering bear territory and inflation raging out of control, all eyes have been on the White House to see if there will finally be some action that will tame inflation and release the burden on American families.

Early on Monday morning, rumors began to circulate that President Biden – who has so far shifted blame for out-of-control gas prices – is considering introducing a federal gas-tax holiday by the end of the week. 

Speaking from Rehoboth Beach – where the President spent the weekend – he stated “I hope to have a decision…by the end of the week.”

States such as New York, Connecticut, and Maryland have already had a state gas-tax holiday to varying degrees, easing the burden faced at the pump.

Last week it was announced that the White House had been considering sending pre-paid gas price relief cards to Americans, but faced issues when it came to planning how to obtain the cards themselves due to the looming chip shortage.

Despite these issues, Biden did not rule this option out.

Treasury Secretary Janet Yellen also mentioned the possibility of a gas tax holiday in an interview with ABC’s George Stephanopoulos yesterday.

While many Americans will agree that some relief is better than none, the overall impact of a federal gas tax holiday will be very small.

For every gallon of gasoline pumped at a gas station, 18.4 cents goes to the Federal government in the form of excise tax. That portion is larger for diesel fuel at 24.4 cents. This means that a family using the most popular truck on the market, a Ford F-150, would save on average of $4.24 per tank.

A move by the federal government to suspend this excise tax would likely pressure many states to also suspend their state-based excise taxes on gasoline however, that is not guaranteed.

If enacted, the White House will almost certainly market this as wee-timed relief for the public heading into the July 4th holiday.

However, the reality remains that in the last month, the average gas price has jumped by more than 50 cents a gallon meaning that the relief that would come from a gas tax holiday wouldn’t even keep up with the rise in price.

It is clear that the economy as a whole is in bad shape and in major need of fixing. The ‘V’-shaped pattern of recovery that has fallen apart during the Biden presidency continues to drift into the red and we need real solutions to the problems we face, not temporary fixes to ease the pain of failed Democrat spending plans. 

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

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