The White House is under pressure from all sides as the national average price of gasoline hovers around the $5.00 per gallon mark, with no real relief in sight, according to top economists.
However, according to CNBC, President Joe Biden is nearing a final decision on declaring a federal gas tax holiday to bring consumers a little relief as the summer driving season kicks into full gear for most of the country.
As AAA reports, the national average cost of a gallon of gas is currently $4.97, with about 18.4 cents of that total being the federal tax amount. One year ago, the national average was $3.07.
Should Biden declare the holiday, using the average cost per gallon and federal tax involved, the average consumer who drives a vehicle with a 15-gallon gas tank would save about $2.76 at the pump.
While it doesn’t seem like much on the surface, the goal, according to Democratic lawmakers and the White House, is to suspend the tax for the remainder of the year so that consumers will actually experience some measurable level of relief.
Sen. Tom Cotton (R-AR) criticized the plan in a tweet, suggesting that it was simply a distraction from what he described as failed policies that led to record-setting gas prices.
The Dems’ so-called gas tax “holiday” is a gimmick worth 18 cents a gallon, or about 6% of the increase in gas since Biden took office.
It’s meant to cover up the fact that Dem policies have restricted supply & raised costs.
— Tom Cotton (@TomCottonAR) June 21, 2022
During his weekend getaway to Rehoboth Beach, Delaware, President Biden was pressed by reporters on whether or not he’s still considering the federal gas tax relief.
“Yes, I’m considering it,” he replied. “I hope I have a decision based on data I’m looking for by the end of the week.”
Earlier in the week, Treasury Secretary Janet Yellen said the federal gas tax relief plan is “an idea that’s certainly worth considering.”
Some states, like California, where the average cost per gallon is heading toward a record $7.00 per gallon, have considered sending out gas rebates to residents to help offset the high prices.
The Biden administration had also considered the possibility of sending out gas rebate cards but ditched the idea reportedly because of a lack of the microchips used in modern credit/debit cards, according to Gizmodo.