At issue is the 18.4 cents-a-gallon federal tax on gas and the 24.4 cents-a-gallon federal tax on diesel fuel. If the gas savings were fully passed along to consumers, people would save… but not much.
One critic did the math on social media —
90-day federal gas tax holiday will provide working families breathing room.
18 cents per gallon
260 miles per week
26 mpg to make math easy
The average driver should save about $2/week through this major policy to lower gas prices.
— Ryan Maue (@RyanMaue) June 22, 2022
IF Biden were to implement a gas tax holiday (cutting the federal gas tax to zero), here's what motorists might save per week with average consumption…
Pickup truck: $5.52
— Patrick De Haan (@GasBuddyGuy) June 20, 2022
Biden’s push faces uphill odds in Congress, which must act to suspend the tax, and where many lawmakers, including some in the Democratic Party, have expressed reservations.
Most economists view the idea of a gas tax holiday with skepticism.
Democratic House Speaker Nancy Pelosi offered a noncommittal response to Biden’s proposal, saying she would look to see if there was support for it in Congress.