Jun 22, 2022 | Celebrity

Joe Biden to Announce Support for Three-Month Gas Tax Holiday

Joe Biden to Announce Support for Three-Month Gas Tax Holiday

President Joe Biden will use a planned speech Wednesday to call for Congress to suspend federal gas and diesel taxes for three months.

The White House shared details of the president’s decision with reporters in a release, calling it a “unique moment” in history.

“President Biden understands that a gas tax holiday alone will not, on its own, relieve the run-up in costs that we’ve seen,” the White House announced in a release.

“But the President believes that at this unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room.”

The federal government charges 18 cents per gallon in taxes for gasoline and 24 cents per gallon for diesel.

"I Did That" Biden sticker at gas station. (Screenshot/My Mizzi/Twitter)

“I Did That” Biden sticker at gas station. (Screenshot/My Mizzi/Twitter)

The White House continues to blame Russia’s war in Ukraine as “Putin’s price hike” for the record-high cost of gasoline, even though prices rose consistently during Biden’s administration.

A recent Rasmussen poll revealed only 11 percent of Americans believe Russian President Vladimir Putin is responsible for the high cost of gasoline.

Biden’s announcement for support of a gas tax holiday pitches the ultimate decision to Congress where some Democrats believe suspending the gas tax is not a reliable solution to high gas prices.

It is unclear whether House Speaker Nancy Pelosi or Senate Majority Leader Chuck Schumer will move quickly to pass legislation on the issue before leaving for the Independence Day holiday.

The president will also call for states to suspend their gas tax, according to the White House.

Economists are skeptical too.

Jason Furman, a senior economic official in former President Barack Obama’s administration, expressed his doubts about the idea after Biden said he was considering it.

“Whatever you thought of the merits of a gas tax holiday in February it is a worse idea now,” he wrote, noting that the reduction would be “pocketed by industry” and only affect gas prices slightly for the consumer.

“This is standard price incidence theory in economics–the government cannot decide who gets the benefits of a tax cut, it gets split between the two parties based on the responsiveness of supply and demand,” he wrote.


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