As the prices rise, so does the weight of the federal gas tax holiday in the White House

According to a report, the Biden administration is considering a federal gas tax holiday because the average price per gallon has risen to more than $ 5 – and the White House economic team could take up the matter this weekend. I

The administration is trying to come up with a solution to alleviate the pain of Americans at the pump with inflation at a 40-year high, and Democrats fear that the economic downturn could ruin their chances in the midterm elections this fall. Will

“It’s definitely an option on the table,” said a Democrat near the White House Told Hill on Monday.

The suspension of the federal gas tax – currently 18.3 cents per gallon of regular fuel and 24.3 cents per gallon of diesel fuel – will require congressional action.

Former UBS CEO Robert Wolf, an economic adviser to former President Barack Obama, told The Hill that he supports a federal gas tax holiday but only for the duration of Russia’s war in Ukraine, which According to the US, global oil supply has been affected and increased. Prices. I

“I know some people may think it’s a bit tricky because it will retreat at some point, but most of the recent increase in gas since the beginning of the year has been due to the Russian invasion,” Wolf said. “I think linking it fully to the war and setting a deadline makes it more strategic and clever.”

Several states, including New York, have imposed gas tax holidays, but Wolff said he thinks President Biden could put pressure on states that have not yet joined the board.

The suspension of the federal gas tax – currently 18.3 cents per gallon of regular fuel and 24.3 cents per gallon of diesel – will require congressional action.
Daniel William McKnight

Last week, the Organization of Petroleum Exporting Countries agreed to increase production, and the White House announced on Tuesday that Biden would visit Saudi Arabia next month – a controversial move since the assassination of Saudi Crown Prince Mohammed bin Salman. Jamal Khashoggi, a journalist based in the United States in 2018, for allegedly being involved in

White House Press Secretary Crane Jean-Pierre was asked during a media gossip on Air Force One on Tuesday whether the Saudi visit amounted to “heel my attempt” to reduce gas prices.

The suspension of the federal tax from March to December will reduce the average cost of petrol by between $ 16 and $ 47 during that time.
The suspension of the federal tax from March to December will reduce the average cost of petrol by between $ 16 and $ 47 during that time.
Stephanie Reynolds / AFP via Getty Images
President Biden is considering a federal gas tax holiday because the average price per gallon has risen to more than 5.
President Biden is considering a federal gas tax holiday because the average price per gallon has risen to more than 5.
Jim Romain / UPI / Shutterstock

“Although energy security is a major issue, it is hardly the only issue. As you all know, Saudi Arabia is the head of OPEC +, and it is the largest exporter. He told reporters As the president traveled to Philadelphia to speak with union leaders.

Jean-Pierre added: “Of course, we discuss energy with the Saudi-Saudi government, and we welcome its – its leadership in reaching a consensus among the group – as planned last week. Increase supply by 50%. “

In a White House press briefing Monday, Jane Pierre denied the gas price holiday: “We have nothing new for you to announce about gas prices or gas taxes.”

As of today, New York is suspending its gas taxes for the rest of the year in an effort to reduce the financial burden on drivers.
As of today, New York is suspending its gas taxes for the rest of the year in an effort to reduce the financial burden on drivers.
Spencer Plot / Getty Images

“It’s clear the White House is doing everything possible right now,” Josh Fred, head of the Climate and Energy program at the Central Democratic think tank Thirdway, told The Hill. “It is understandable that the gas tax holiday is on the table as part of their strategy.”

But some say the gas tax holiday won’t really help motorcycles. I

The suspension of the federal tax from March to December will reduce the average cost of petrol by سے 16-47 during that time. Penn Wharton budget model Released earlier this year. I

The report also said that suspending the tax, which funds infrastructure projects, would reduce federal tax revenue by about ً 20 billion.

Mark Zindi, chief economist at Moody’s Analytics, told The Hill that studies show that the bulk of the tax cuts could be achieved through energy companies and did not target relief to help low- and middle-income Americans. Can go I

“You also run the risk of reducing funding for infrastructure, which is critical to the long-term growth of the economy,” he said.