Lacking solutions that would actually reduce the price of oil, Biden is calling on Congress to pass a three-month gas tax holiday, through September. "Today I'm calling on Congress to suspend the Federal gas tax for the next 90 days, through the busy summer season, busy travel season." Biden has also encouraged states to implement similar relief.
If passed by Congress, this relief would amount to savings of 18 cents a gallon, which can easily be wiped out by even a minor increase in the price of oil, as this 18 cents represents less than 4% of the average cost of a gallon of gas. According to one analysis:
The Congressional Research Service has estimated that, if no federal gas tax had been in place in 2020, a typical U.S. family would have saved $163 over the year — or $13.58 per month.
That average is based on federal highway statistics, which show the average family owns just under two vehicles and the typical vehicle travels about 10,000 to 12,000 miles a year. Over the course of the entire three-month tax waiver that Mr. Biden is proposing, that translates into a savings of $40 per family.
Results from an analysis by the University of Pennsylvania's Wharton School were even more pessimistic. According to the findings, a 10-month gas tax suspension would save a grand total of $16 to $47 per person for the entire period.
That average is based on federal highway statistics, which show the average family owns just under two vehicles and the typical vehicle travels about 10,000 to 12,000 miles a year. Over the course of the entire three-month tax waiver that Mr. Biden is proposing, that translates into a savings of $40 per family.
Results from an analysis by the University of Pennsylvania's Wharton School were even more pessimistic. According to the findings, a 10-month gas tax suspension would save a grand total of $16 to $47 per person for the entire period.
Meanwhile, inflation is costing American families an extra $460 a month.
Perhaps showing some awareness that this isn't likely to accomplish much, Biden tested an alternate strategy during the speech that involved just begging gas station owners to please lower prices. "So let’s be honest — my message is simple to the companies running gas stations and setting those prices at the pump: This is a time of war, global peril, Ukraine. These are not normal times. Bring down the price you are charging at the pump to reflect the cost you are paying for the product. Do it now. Do it today. Your customers, the American people — they need relief now."
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros
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