Biden has officially asked Congress to announce a gas tax break in a desperate attempt to get political backing from the masses, ahead of the midterm elections.
While this break will reduce prices momentarily, it will eventually surge demand, resulting in yet another historic price hike.
Biden Fires Another Bullet in the Air
As he tried to give Americans a “little bit of relief,” Biden stated suspending the gasoline tax of 18 cents per gallon could bring the soaring prices down.
The president also urged states to halt different state taxes on gas to bring a significant change in gas prices that are breaking all previous records these days.
However, critics believe this is only a symbolic move of the president, who is running out of options otherwise.
Liberal news outlet Politico also noted an average consumer is unlikely to get any significant benefit from the proposed relief. According to the outlet, a consumer spending $50 on gas will only receive $1.80 in relief.
How can saving 18 cents per gallon by suspending the "gas tax" for 90 days provide Americans economic relief?
— TheLeoTerrell (@TheLeoTerrell) June 22, 2022
Though, it will result in severe, long-term consequences for the government; it can also fall short of the money needed to build and maintain critical infrastructures, including roads and bridges across the nation.
Biden Wants to Shift Blame of Price Hikes on Congress
Experts think Biden is finding a new punching bag in Congress to blame for the gas price hike after the failure of his “Putin price hike” narrative.
This is due to the fact his proposed plan is likely to stall in Congress, amid the hyper-partisan political environment and the presence of moderate senators in Democratic ranks.
It is apparent from the comments of the second-ranking Republican senator, as well. Sen. John Thune noted Biden’s gas tax proposal is just “another gimmick” and it will “die on arrival” in Congress.
In 2008, Barack Obama bashed a “gas tax holiday” as a “gimmick.”
“For us to suggest 30 cents a day for three months is real relief, that that’s a real energy policy, means that we are not tackling the problem that has to be tackled.” pic.twitter.com/vUziTflOnb
— RNC Research (@RNCResearch) June 22, 2022
Nick Arama, a conservative author at RedState, also established the tax break would increase the demand for gas, which will ultimately bring prices up once again.
This means the prices will stay almost the same and the administration will end up losing the tax money as well.
Nick also busted Biden’s rhetoric of asking oil companies to increase production at the same time when his own administration is busy demonizing the industry.
Just last week, American Fuel & Petrochemical Manufacturers and American Petroleum Institute sent a letter to the president, notifying him the oil companies are already operating at their maximum capacities.
However, the letter identified that government restrictions are discouraging investment in the oil sector, while incentivizing the green energy sectors, which is the primary reason for the existing shortage.
Michael Wirth, the CEO of the energy giant Chevron, also wrote a separate letter to the president, urging him to stop vilifying the oil industry if he wants to bring the country out of chaos.