Biden calls on congress to suspend gas tax

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Image by IADE-Michoko from Pixabay

President Joe Biden called on congress to suspend the federal gas tax Wednesday, but an economist at Indiana University says drivers may hardly notice a difference.

Biden says he wants to suspend the gas of 18 cents per gallon of regular gasoline and 24 cents per gallon of diesel for three months. “It’s really not a great policy,” Kyle Anderson, an associate professor of business economics at the Indiana University Kelley School of Business, told WISH-TV. “It likely won’t lead to much reduction in the price of gasoline.”

With refineries already working at full capacity along with a high demand for gas, prices probably won’t change. Anderson told WISH-TV that suspending a tax won’t increase production or reduce demand which are two contributing factors in lowering gas prices.

However, Anderson says drivers might notice a difference if the state’s gas tax was suspended.

“We might see prices go down by say, 20 or 30 cents per gallon, which is significant, would help somewhat, but the trade off with that is the state would lose a lot of tax revenue that would probably have to make up in some other area,” Anderson said.

4 COMMENTS

  1. So 18 Federal cents a gallon “likely won’t lead to much reduction in the price of gasoline.”

    Followed by 20 state cents a gallon “would help somewhat”.

    I sense an ulterior motive here…

  2. Wow, like Charles says just political grandstanding The federal gas tax amounts to 18.4 cents per gallon

    Wow like lets forget President says he is here to destroy fossil fuels? So oil companies reduced new production wells as they were afraid of his threats????

    • That’s why the oil companies are having “record profits”, by the way. Currently, their R&D and investment spending is zero. That strategy makes perfect sense when the government declares war on your industry.

  3. Symbolism over substance. With gas hovering around $%/gallon or more the federal gas tax won;t save very much on a tankful. Not enough to visit Starbucks in fact. Dopey King Xo the Idiot of Brandonville is only trying to convince the other idiots in this country that he’s doing something for them. If he really wants to do something he can get out of the way on oil leases and pipelines. I do not want to hear about the wonderment of electric vehicles are going to save us. It takes 3-6 days to charge one at home. If you take all the battery power available in the US to power the country, it would last a mere 11 seconds. It will be another decade before it gets to 11-minutes. We are already being warned about brownouts or heaven forbid blackouts this summer. If the electric vehicle fleets reaches 8%, the electric grid will collapse because it cannot handle the load of charging all those vehicles. Already Germany is firing up their coal plants to make electricity. When we see a 747 fly to Europe of to the far east then we can talk about electric vehicles. All the pie in the sky talk about electric vehicles ignores the laws of thermodynamics and physics we all live under whether we like oit or not.

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