President Joe Biden’s most recent illogical plan to lower petrol costs is being derided by everybody.
According to Jason Furman, a senior economist for the Obama administration, Biden’s call for a three-month gas tax vacation won’t have much of an impact on consumers.
According to Furman, industry would keep most of the 18-cent tax cut, which would expire in September, and perhaps pass on a few cents to consumers.
Furman argued that the flaw in Biden’s proposal is that he cannot ensure that consumers would benefit from the tax decrease.
A tax vacation would likely have the effect of encouraging people to purchase more gas than can be produced since the supply is limited and not adapting to inflation, which would raise costs.
Even Democrats are not enthusiastic about Biden’s proposal, which still needs to be approved by Congress. They are wary of the questionable, at best transient advantages and the potential effects of the tax reduction on government financing for roads and bridges.
Barack Obama has referred to the gas tax holiday as a ruse used by politicians to claim action.
Republicans claim that by ignoring his war on fossil fuels, which he declared on his first day in office, Biden is not dealing with the real problem. Biden’s gas tax vacation was described as an ineffectual ruse by Senate Minority Leader Mitch McConnell (R-KY) to hide the Democrats’ campaign against cheap American energy.
The gas holiday is Biden’s most recent effort to rein in what he claims is Putin’s price increase via inefficient workarounds, such as increasing the amount of ethanol in gasoline and releasing oil from American strategic reserves.
While he dubiously tries to persuade people that the economy is booming, Biden is simultaneously feebly attributing inflation to Russia’s invasion of Ukraine and greedy oil firms.