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Biden plans phony “gas holiday” for the election

Biden plans phony “gas holiday” for the election

Biden has another political stunt to fool the American voters into thinking he is working to bring down the price of gas – and the inflationary pressures it puts on almost everything else we purchase.

He has already made major announcements about releasing oil from the federal reserves.  Economists would tell you that the amount released would be consumed in a few days – and not do much to impact the price of gas at the pump.  But you know that already.

Now he is proposing to suspend the collection of the federal gas tax for a short period.  The “period” is very telling.  The “holiday” would last until after the November midterm elections.  According to the White House, that would reduce the price of gas at the pump by 18 cents per gallon.

Even if that were true – and it is not – that would be a saving of approximately $20 per month for the average driver – or $240 per year. Whoopee!  That hardly puts a dent in the increases that drivers have experienced in the past year.  And that is if you believe the 18 cents White House claim.

Biden says his so-called “tax holiday” would put more money in the hands of the people.  Hmmmm.  Isn’t our current inflation problem too much money chasing too few goods?  Isn’t the Federal Reserve raising interest rates in order to cool down spending?  

Under the Biden plan, drivers would not see price reductions at the pump for a number of reasons.  First, the 18-cent estimate is the most optimistic theoretical projection. That would vary from state to state based on industry cost factors and local tax structures.  Individual gas stations may not pass through the entire tax reduction. Gouging is a small issue, but gas station operators would be prudent to hedge against the current rate of price increases.

In addition, any theoretical price reduction will be invisible since prices are likely to continue to rise.  It is a little – maybe a lot – like Biden bragging about increases in wages that are being wiped out by inflation.  Despite wage increases, a person’s all-important purchasing power is declining

There are other downsides to Biden’s election-year scheme.  Federal gas money is used to support the federal highway system.  Biden is either taking away money from his infrastructure projects – and costing people their jobs –or the money will have to be secured from — ouch — borrowing.  

What Biden is NOT doing is the very thing that could have an impact on gas prices and the run-away inflation – pumping more American oil.  In the campaign, he promised to shut down the fossil fuel industry.  Yes, he said that.  Sadly, it appears to be the only campaign promise he is keeping.

The Green New Deal that Biden embraces is predicated on driving up gas prices to pressure people into purchasing an electric vehicle.  When Biden laments the high price of gas, those are crocodile tears running down his cheeks. 

He’s openly stated strategy has been – and is – to increase gas prices by shutting off the domestic supply … period.  That is why his “gas holiday” does NOTHING to address the shortage of gas.  He is opting to go to unfriendly nations to get some relief from the inflationary pressures but does not want to open the oil spigot in America because it undermines the left’s policy to kill off fossil fuels completely.

Finally, any federal “gas holiday” requires congressional actions.  And Biden knows that it is very unlikely that Congress will agree to such a bad idea – although there is no guarantee when it comes to Congress doing the right thing.  

If there is that “gas holiday,” do not start planning a trip to Disneyland.  You will burn up any savings you receive just driving there.

So, there ‘tis.

About The Author

Larry Horist

So,there‘tis… The opinions, perspectives and analyses of Larry HoristLarry Horist is a businessman, conservative writer and political strategist with an extensive background in economics and public policy. Clients of his consulting firm have included such conservative icons as Steve Forbes and Milton Friedman. He has served as a consultant to the Nixon White House and travelled the country as a spokesman for President Reagan’s economic reforms. He has testified as an expert witness before numerous legislative bodies, including the U. S. Congress. Horist has lectured and taught courses at numerous colleges and universities, including Harvard, Northwestern, DePaul universities, Hope College and his alma mater, Knox College. He has been a guest on hundreds of public affairs talk shows, and hosted his own program, “Chicago In Sight,” on WIND radio. Horist was a one-time candidate for mayor of Chicago and served as Executive Director of the City Club of Chicago, where he led a successful two-year campaign to save the historic Chicago Theatre from the wrecking ball. An award-winning debater, his insightful and sometimes controversial commentaries appear frequently on the editorial pages of newspapers across the nation. He is praised by readers for his style, substance and sense of humor. According to one reader, Horist is the “new Charles Krauthammer.” He is actively semi-retired in Boca Raton, Florida where he devotes his time to writing. So, there ‘tis is Horist’s signature sign off.

4 Comments

  1. Tom

    I agree again Larry!!! Wow, we got a thing going on!!!! I think its all phony. And then in winter we will be told no road repairs because we did not have gas taxes. The who thing is a really stupid idea. And I wonder how much it will cost the independent gas stations to reprogram so they do not collect the gas tax, and then reprogram again in November. Absolutely dumb. But you have a good point, it will only last to get his team through the elections in November! I will take my $20 gas savings and buy some beer so I can cry in it!

    • larry Horist

      Tom, Nice to find a point of agreement. But I later found there was a possible error in my commentary. A later report put the possible savings at $24 per QUARTER — or $72 per year. Of course, that is if it makes it through the system and to the pump.

  2. Rat Wrangler

    The best thing our President and/or Congress could do to help the People would be to put caps on the profits the oil companies make during hard times. Many, if not all, the oil companies reported record profits for the first quarter of 2022, to the tune of billions of dollars in net income. If those profits were to be capped, gas prices could come down substantially. Once Congress realizes that such caps work, maybe they would then apply the same rules to our pharmaceutical and automotive industries.

    • larry Horist

      Rat Wrangler. I will be doing a commentary on the issue of the cost of petroleum. But suffice it to say that even if you reduced the American oil company profits to zero, prices would not “come down substantially” because the profits are not a significant driver of inflation and gas prices. Just as Biden’s pouring in America’s oil reserves has not made a difference. It is dollars chasing limited supply on a massive worldwide scale. The best thing America can do is to produce more oil on a massive scale. That would be more beneficial than begging for oil from adversarial nations in trade of dangerous concessions. And to the extent Putin’s dirty little way added to the oil costs, we could have ended that early on with a military response by putting boots on the ground — and massive amounts of military hardware — BEFORE Putin invaded. So, in a way, Putin’s affect on gas prices was Biden’s giving the Russian madman the green light to invade.