Biden calls for three-month federal gas tax holiday
Abstract
Lifting the federal 18-cent tax per gallon of gas and 24-cent tax per gallon of diesel for three months would "Give Americans a little extra breathing room as they deal with the effects of Putin's war in Ukraine," the White House said in a fact sheet. The White House is also encouraging states to take further action to reduce gas prices, citing several states' gas tax holidays as examples. The Owner-Operator Independent Drivers Association said in March that state gas tax holidays wouldn't do "Anything for the trucking industry." One reason: The International Fuel Tax Agreement, a tax paid to states for use of their roads, could negate any savings drivers collect from buying cheaper diesel in states suspending their gas taxes. Another? Gas taxes fund the Highway Trust Fund that pays for roads, bridges and other projects that provide safe and reliable trucking routes. Gas tax holiday proposals, while generally popular with voters, have backfired politically before. In remarks at the White House Wednesday afternoon, the president urged gas stations to pass along any savings they receive from a gas tax suspension and encouraged oil refiners to bring more capacity online to boost supply. "The price of gas wouldn't have spiked the way it has. I believe that would have been wrong." Biden acknowledged that the gas tax holiday, alone, "Is not going to fix the problem." "But it will provide families some immediate relief," he said.
