Larry Horist | Nov 18, 2022 | 52
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.