“President Biden on Wednesday will call on Congress to suspend the federal gas and diesel taxes for the next three months, the latest effort by the White House to provide relief to Americans struggling with record-high gasoline prices,” The Hill reports.
Wall Street Journal: “A suspension of the 18.4 cents a gallon federal gasoline tax would require congressional approval, so a move by Mr. Biden to throw his support behind the effort would be largely symbolic. Lawmakers of both parties have expressed resistance to suspending the tax, a move that would likely need bipartisan support to become law.“
New York Times: “Even if all of the benefits were passed on to consumers, the owner of a Ford-150 that gets 20 miles to the gallon driving a thousand miles per month would save about $9 if the federal gas tax were suspended — the cost, these days, of a decent ham sandwich.”
Jason Furman: “Whatever you thought of the merits of a gas tax holiday in February it is a worse idea now. Refineries are even more constrained now so supply is nearly fully inelastic. Most of the 18.4 cent reduction would be pocketed by industry–with maybe a few cents passed on to consumers.”
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