Republicans blast Biden's gas tax holiday as 'fake fix'



With his poll numbers flailing, President Joe Biden on Wednesday will call for Congress to suspend the federal gas and diesel taxes over the summer to provide relief for American drivers amid record-high gas prices.

If Congress acts, the 18-cent tax per gallon on gas and 24-cent tax per gallon on diesel fuel would be lifted for a three-month period that would coincide with an expected surge in demand for gas as people travel during the summer.

The White House released a fact sheet on the proposal Wednesday morning.

“A federal gas tax suspension alone won’t fix the problem we face, but it will provide families a little breathing room as we continue working to bring down prices for the long haul,” a senior administration official told reporters on a call before the announcement, according to The Hill.

The White House acknowledged that a gas tax suspension is only a temporary action and that in the long term, the tax is needed for the Highway Trust Fund.

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

State and federal gas taxes make up about 16.4% of the average retail price for a gallon of gasoline, according to the U.S. Energy Information Administration.

Proponents of the gas tax holiday say it's a quick and easy way to lower prices at the pump. But Republicans and energy experts criticized the president's proposal, calling it a "fake fix" and suggesting it will lead to higher prices overall.

"Joe Biden has caused gas prices to hit historic highs by killing American energy and implementing 39 new regulations and executive orders," Sen. Marsha Blackburn (R-Tenn.) tweeted. "Suspending the gas tax will not fix Biden's energy crisis. It's a fake fix."

\u201cJoe Biden has caused gas prices to hit historic highs by killing American energy and implementing 39 new regulations and executive orders.\n\nSuspending the gas tax will not fix Biden\u2019s energy crisis. It is a fake fix.\u201d
— Sen. Marsha Blackburn (@Sen. Marsha Blackburn) 1655900082


"Biden's gas tax 'holiday' won't increase supply. Instead, it will increase demand while saving just ~6% of Biden's gas price hike," Sen. Tom Cotton (R-Ark.) said. "It's a bad idea that won't help, but it's par for the course from this incompetent White House."

The Republican National Committee resurfaced 2008 video of then-candidate Barack Obama slamming a "gas tax holiday" as a "gimmick" that wasn't real energy policy.

\u201cIn 2008, Barack Obama bashed a \u201cgas tax holiday\u201d as a \u201cgimmick.\u201d \n\n\u201cFor us to suggest 30 cents a day for three months is real relief, that that\u2019s a real energy policy, means that we are not tackling the problem that has to be tackled.\u201d\u201d
— RNC Research (@RNC Research) 1655906191

Daniel Turner, the executive director and founder of the nonprofit energy group Power the Future, called Biden's plan a "transparent election year gimmick."

“Amid its litany of failures, the Biden Administration has succeeded at creating record inflation, and they have done so by strangling American energy production to appease the eco-extremists. Rather than a temporary gas tax suspension, Joe Biden should permanently suspend pursuit of the green policies that have upended our way of life and sent our economy spiraling," Turner said.

President Biden will pitch his plan to the American people in a speech Wednesday afternoon. He will also call on Congress to find $10 billion in other revenues to make up the cost of the tax holiday and fund the Highway Trust Fund.

Biden’s Kooky Gas Tax Holiday Is Another Leftist SCAM | Ep 523

Biden’s Kooky Gas Tax Holiday Is Another Leftist SCAM | Ep 523

DeSantis announces $1 billion in Florida gas tax relief to combat inflation



Florida Gov. Ron DeSantis on Monday announced that the Republican-controlled state legislature will act to suspend the state's gas tax to provide $1 billion in relief to drivers feeling pain at the pump as inflation continues to push prices up.

Speaking at a Buc-ee's gas station and convenience store in Daytona Beach, DeSantis called out "inflationary policies out of Washington" for driving up consumer prices ahead of the holidays.

"The price of a Thanksgiving dinner is up over 20% just over last year," DeSantis said. "I think what's most dramatic, because it affects most people in their daily lives, is gas prices going up."

According to the American Automobile Association, the average price for a gallon of regular unleaded gasoline in Florida jumped 10 cents to $3.36 in the last week alone. While still below the national average of $3.41, WPLG-TV reports it marks the highest price Floridians have paid for gas since September 2014. The governor noted that the price of gas today is $1.31 more expensive than it was a year ago.

"We think this is a huge problem for working families in Florida. Really it hits everybody, but it particularly hits blue-collar people, people on fixed income," DeSantis said.

He explained that the state government could provide immediate relief for Florida families by suspending the gas tax until prices come back down.

"The average family over a five or six month period, you know, could save up to $200," the governor told reporters. "There's a whole bunch of things that go into the price of gas. There's different taxes, federal, state, local level, we're taking over 25 cents from Florida and we will basically zero that out for as long as we can and do over a billion dollars. That's going to make a huge, huge deal."

DeSantis said he's spoken with business leaders in the state to ensure that if the tax holiday passes, prices at the pump will come down.

"We talked [to] Racetrack, we talked to Daily's, Gate, a bunch of them throughout the state of Florida, and they all said yes, absolutely [we will lower prices]. And I think the reason is it makes financial sense for them because they make a lot of money when people come into their store and buy things," DeSantis said.

He added that state budget surpluses have put Florida in "great financial shape" and told reporters that suspending the gas tax will not hamper state infrastructure spending.

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The AAA said Monday that gas prices should decline through the holiday season after crude oil prices fell 6% last week.

"High gas prices are not something drivers will be thankful for this Thanksgiving," AAA spokesman Mark Jenkins said. "The good news is gas prices should gradually decline through the holiday. Crude oil and gasoline futures dropped last week, and that should restore some downward pressure on prices at the pump."

President Joe Biden blamed "anti-consumer behavior" from oil and gas companies for rising prices last week, instructing the Federal Trade Commission to investigate whether fuel companies were illegally colluding to raise prices.

Economists say that the higher prices seen at gas stations nationwide are caused by more Americans demanding gas for travel as pandemic restrictions lift, supply chain issues, and OPEC and other oil-exporting countries limiting the supply of oil internationally while the Biden administration restricts oil production in the United States.