Biden Pushes Congress for Three-Month Gas Tax Holiday – The New York Times

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“I think it’s a temporary fix,” Ms. Capito said. “But yes, people were saying, ‘Do something.’”

Senator Rick Scott of Florida, the chairman of the Senate Republicans’ campaign arm, questioned where the federal government would find revenue normally generated from the gas tax that supports building roads, bridges and other infrastructure projects in his state.

“What expenses are we going to cut out?” he said, adding that the proposal to suspend the tax showed that “Democrats know they’re in deep trouble.”

Mr. Biden sought to assuage those concerns on Tuesday.

“Look, it will have some impact, but it’s not going to have an impact on major road construction and major repairs,” he told reporters, adding that the administration had plenty of capacity to maintain roads.

The suspension of the taxes would cost roughly $10 billion. Senior administration officials said Mr. Biden would ask Congress to dip into other pots of money to backfill the loss.

But as global oil demand and a fractured market have sent prices soaring, experts have questioned how much a gas tax holiday would benefit consumers.

“Whatever you thought of the merits of a gas tax holiday in February, it is a worse idea now,” Jason Furman, the chairman of the Council of Economic Advisers under President Barack Obama, posted on Twitter, arguing that the oil industry was likely to pocket most of the savings.

Source Article from https://www.nytimes.com/2022/06/22/us/politics/biden-gas-tax-holiday.html

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