Economics of gas tax repeal

[TMan92]

I know the crazy talk of this article might confuse some folks on this board.

Congress Unlikely to Heed Biden’s Call for Three-Month Suspension of Gas Tax — The Wall Street Journal

President says tax holiday would provide Americans some immediate relief, but many lawmakers are wary of idea

apple.news

 

[tearsforfears]

I know the crazy talk of this article might confuse some folks on this board.

Congress Unlikely to Heed Biden’s Call for Three-Month Suspension of Gas Tax — The Wall Street Journal

President says tax holiday would provide Americans some immediate relief, but many lawmakers are wary of idea

apple.news

At least this isn’t an Aaron Rupar tweet. You’re already doing better. Speaking of confusing some folks.

 

[BoilerJS]

I know the crazy talk of this article might confuse some folks on this board.

Congress Unlikely to Heed Biden’s Call for Three-Month Suspension of Gas Tax — The Wall Street Journal

President says tax holiday would provide Americans some immediate relief, but many lawmakers are wary of idea

apple.news

Normally I would be against a gas tax suspension because the tax is for the maintenance of roads and bridges however, in this case there are billions of unspent COVID relief money that can be used for those purposes.
IMO the suspension is no more than a political ploy to say to the American people, look I am trying to help.
And the article is correct it won't have an effect on gas prices.

 

[bonefish1]

The dummy Dems are screaming "Look at what Biden is doing to help the American people!" "He's saving you $0.18 per gallon!!!"

While people with any ability to think are saying "This is going to save the average American driver about $18 over the 3 months. Thanks Brandon"

It's called pandering.

 

[TheGunner]

I am obviously not a Biden fan, but I do applaud his efforts to “try” to ease the pain at the pump. Yes, it may not “significantly” reduce the price at pump, but anything helps middle America and I believe it could also reduce the chances of us ending up in a recession due to high oil market prices.

As others have noted, there should be pandemic money at the federal and state level to offset the losses in tax revenue to allow for a temporary federal and state repeal.

I also believe this could help soften the blow from the Federal bank (powell) raising interest rates, at least until the oil markets come down/stabilize.

Seems like the right thing to do in the short term, it will be interesting to see where Congress sits. I also applaud Biden for doing something counter to his far left base (and their GND/climate change agenda). This isn’t something that I have seen much of in the last 17-18 months.

 

[Chris P Bacon]

The dummy Dems are screaming "Look at what Biden is doing to help the American people!" "He's saving you $0.18 per gallon!!!"

While people with any ability to think are saying "This is going to save the average American driver about $18 over the 3 months. Thanks Brandon"

It's called pandering.

And actually is likely to drive up prices because demand goes higher and as usual, it completely ignores the core issue: Lack of supply... which is the issue Biden DIRECTLY had a hand in causing.

We were energy independent essentially when the potato took office and then he killed the pipeline and made it harder to drill with all the regulations.

I mean when even Obama said it was a bad idea, it's a bad idea.

 

[Crayfish57]

I am obviously not a Biden fan, but I do applaud his efforts to “try” to ease the pain at the pump. Yes, it may not “significantly” reduce the price at pump, but anything helps middle America and I believe it could also reduce the chances of us ending up in a recession due to high oil market prices.

As others have noted, there should be pandemic money at the federal and state level to offset the losses in tax revenue to allow for a temporary federal and state repeal.

I also believe this could help soften the blow from the Federal bank (powell) raising interest rates, at least until the oil markets come down/stabilize.

Seems like the right thing to do in the short term, it will be interesting to see where Congress sits. I also applaud Biden for doing something counter to his far left base (and their GND/climate change agenda). This isn’t something that I have seen much of in the last 17-18 months.

he needs to focus on the problem vs a band aid that will merely rip the scab off in 3 months as it will only increase demand if anything. If this were because of a hurricane and refineries under repair and supply chain fixed then great. I think Indiana increasing the tax 5 cents July first is really dumb however

 

[Boiler Buck]

Need to use the money & emergency powers to not only reopen, but EXPAND the prior production of the many refineries that have CLOSED since Biden took over. Read an article there were 5 of these, minimum. Larry Kudlow said there were 11 of these closed.


That is 1 long term solution.....that might actually help us next year.

 

[bonefish1]

I am obviously not a Biden fan, but I do applaud his efforts to “try” to ease the pain at the pump. Yes, it may not “significantly” reduce the price at pump, but anything helps middle America and I believe it could also reduce the chances of us ending up in a recession due to high oil market prices.

As others have noted, there should be pandemic money at the federal and state level to offset the losses in tax revenue to allow for a temporary federal and state repeal.

I also believe this could help soften the blow from the Federal bank (powell) raising interest rates, at least until the oil markets come down/stabilize.

Seems like the right thing to do in the short term, it will be interesting to see where Congress sits. I also applaud Biden for doing something counter to his far left base (and their GND/climate change agenda). This isn’t something that I have seen much of in the last 17-18 months.

It's literally not going to help anyone. Rich, poor, or in the middle.
The avg car in America has a 17-25 gal fuel tank. The avg American fills their tank every two weeks.
Calculated out, (avg 21 gal fuel/every 2 weeks) means the avg American saves $3.78 every two weeks, or over the 3 months, will save approx $23 total ($3.78 x 6 fill ups).
This comes out to $.27 per day savings for the Avg American over the 3 month fed tax gas holiday.

Are you F'ing kidding me? $.27 a day saved......Thanks Brandon Potato.

 

[BoilerJS]

I am obviously not a Biden fan, but I do applaud his efforts to “try” to ease the pain at the pump. Yes, it may not “significantly” reduce the price at pump, but anything helps middle America and I believe it could also reduce the chances of us ending up in a recession due to high oil market prices.

As others have noted, there should be pandemic money at the federal and state level to offset the losses in tax revenue to allow for a temporary federal and state repeal.

I also believe this could help soften the blow from the Federal bank (powell) raising interest rates, at least until the oil markets come down/stabilize.

Seems like the right thing to do in the short term, it will be interesting to see where Congress sits. I also applaud Biden for doing something counter to his far left base (and their GND/climate change agenda). This isn’t something that I have seen much of in the last 17-18 months.

You have outlined a lot of expectations resulting from gas to decrease from $5.18 to $5.00 per gallon.
I doubt it makes a lick of difference to anything you have listed above.

 

[TheGunner]

My point was repeal federal gas taxes, ask governors to repeal state taxes, and work with Big Oil to figure out what is a capacity/refining solution.

My understanding was that some fossil fuel tax breaks were removed/proposed to be removed, which could be used as a negotiating point for Big Oil to find a refining solution (what incentives are necessary to add refining capacity?).

The Democrat concept of make everything electrical isn’t a short term (3-5 year) solution and will overload the electrical grid. If Biden wants infrastructure investment, this is where infrastructure spending is needed, and likely would impact/lower inflationary cost over the next 3-5 years.

i don’t see far left support for this type of initiative, but this is the type of fix that Biden could work with Republicans to find a middle ground, assuming Biden could bring 25% of the Democrats along. But Biden would be labeled a sellout by far left Democrats.

Biden budget would repeal fossil fuel tax breaks in move expert says could discourage investment, cost jobs | Fox Business

President Biden's budget proposes rolling back tax preferences for the fossil fuel industry.

www.foxbusiness.com

Big Oil’s Influence Shrinks as Tax Perks Face Axe in Biden Plan

Cutting the fossil-fuel industry’s tax perks might not dramatically affect hydrocarbon output or the environment, but it will mark the end of an era for Big Oil.

www.wsj.com