While on his 2008 campaign trail, Barack Obama ridiculed the idea of a gas-tax holiday as a gimmick. The White House supported the idea on Wednesday.
“I am aware that the gas tax holiday is up for debate. I am aware of how hard this is for people right now and I understand they need relief. Obama stated on the campaign trail 14 year ago that he offered a tax cut for all Americans, as well as $1,000 for working families, so they could deal with rising gas prices and rising health care costs.
He said, “But to suggest that 30c per day for three years is real relief, and that that’s an energy policy, does not mean that we are tackling the problem that needs to be solved.”
He continued, “We’re offering gimmicks while we offer the same thing John McCain is offering for free.” “That is a sign that we are not offering a truthful solution to the problems we face in America. We can do better than this at the moment.”
Jason Furman, a Harvard economist, was a top economic advisor to Obama. He explained via Twitter that the majority of a reduction in gas taxes would end up in the pockets and wallets of oil refiners rather than consumers.
Biden will likely announce his support for a three month gas tax holiday and ask Congress to suspend federal diesel and gasoline taxes.
According to a White House press release, “The cost of gasoline has risen dramatically all over the world and by nearly $2 per gallon in America since Putin began building troops at the border with Ukraine.” Only 11 percent blame Russian President Vladimir Putin, while Biden is most responsible for the rise in gas costs.
The White House continues to release:
High gas prices are a major problem for working families, which President Biden is acutely aware of. He has taken steps to increase the supply of oil, including a historic release from the Strategic Petroleum Reserve and encouraging refiners and oil companies to increase their output and capacity to ensure more supply to the market.
Notably, Biden did not make such a note and took immediate steps to reduce America’s energy independence. He cancelled the Keystone Pipeline, oil and gas leases were cancelled and he joined the Paris Climate Accord.
The release states that the federal government charges 18 cents per gallon of regular gas and 24 for diesel. To give Americans some breathing space as they confront the consequences of Putin’s war on Ukraine, the White House plans to suspend these taxes until September.
But gas prices had been rising long before Russia invaded Ukraine. On Wednesday, gas prices had risen $2.575 since the last day of President Trump’s term. After a record-breaking $5.016 week, prices were at $2.38 on January 19, 2021. They are now at $4.955 on Tuesday.
On Wednesday, the National Republican Senatorial Committee blasted Biden’s proposal.
“The gallantry of President Biden, Senate Democrats is astounding. T.W., a spokesperson for the NRSC said that pushing for a gas tax suspension in the current crisis is like proposing to make a Band-Aid to it. Arrighi stated in a statement.
It’s absurdity at a near-comedic scale and Americans aren’t buying. Arrighi said that Democrats caused this crisis through their disdain for large swathes of American energy production. “We are less secure and poorer because of Joe Biden, Senate Democrats.”