President Joe Biden is calling for a three-month gas tax holiday to bring down the price of a gas station. Interestingly, former President Obama opposed gas tax holidays when energy prices were much lower. In fact, he called the temporary suspension of the tax a “gimmick”. The US government currently charges 18 cents per gallon for gasoline and 24 cents per gallon for diesel.
In his 2020 memoirs “Promised land”, Obama has stated that opposition to the suspension was one of the reasons he defeated Hillary Clinton in the 2008 US presidential election. “I was sure that consumers would not see much benefit. In fact, gas station owners were just as likely to keep gas prices high and increase their own profits as they were to pass along three cents per gallon savings to motorists,” Obama said in his memoir after noting that Clinton and GOP candidate McCain both supported the idea.
Many politicians on both sides have said they cannot guarantee that the tax holiday will reduce consumer spending. In the face of the current energy crisis, pitiful tax breaks won’t help those struggling for gasoline. Instead, America needs to increase production, re-implement pipeline agreements, and start fracking until a viable alternative emerges.