Biden’s Proposed Federal Gas Tax Holiday Could Make Inflation Worse

Biden calls for federal gas tax holiday
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It’s just a few months before the midterm elections. It will be here before we know it, in fact. Biden and the Democrats are trying various ideas to try to make themselves look better, even though the United States has spent months at the worst inflation level in forty years.

One idea that Biden wants to try is a “federal gas tax holiday.” He’s been talking about it lately, and now he’s decided to go for it, and wants the “holiday” to last for three months, reports Fox Business.

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It’s actually up to Congress to implement a federal gas tax holiday, like Biden suggests. It would lower the price of gas, currently just under $5.00 per gallon on average in the United States, by 18.4 cents per gallon. So, doing the math, on the “holiday” we would pay approximately $4.80 per gallon.

The Committee for a Responsible Federal Budget, a non-partisan group that advocates for reducing the federal budget, however, does not support the idea of a federal gas tax holiday. In fact, in February, the Committee said a federal gas tax holiday would cost $20 billion. “While the gas tax holiday may reduce prices at the pump, it will further increase demand for gasoline and other goods and services at a time when the economy has little capacity to absorb it. The result could be even higher rates of inflation in 2023,” the Committee said.

Former President Barack Obama dismissed the idea of a federal gas tax holiday as a “gimmick” in 2008.

Movement to boycott gas is gaining momentum on social media

Biden is calling it a “holiday” to get Americans to jump on the bandwagon. I mean, who doesn’t like a holiday? But it’s just another ploy to try to get voters on his side. And it really doesn’t amount to much of a savings at the pump. Is it worth it? Will his ploy work?

Stacey Warner

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