The federal gas tax on gasoline is currently 18.4 cents per gallon (for diesel, it is 24.4 cents.) The current price of gasoline at the pump is $ 5 per gallon in Balpark, which means that if your local station price is listed as such. Yes, say, the average is 50 5.50 per gallon and the federal gas tax is abolished. If Congress agrees to this break, the price will be reduced to 32 5.32 per gallon.
Again, the first question is whether any of the consumers who pay the highest gas prices will (1) consider the change, even the very low (2) slightly lower prices attribute to the greatness of the federal government. , Not a product. The same price fluctuations that consumers keep guessing at every time they are drawn to the pump.
The second question is whether gas retailers will actually give customers a full 18 cents of savings or keep prices just as high as their local customers would tolerate, such as what capitalism is, and pocket the difference as an added benefit. Here’s the tip: this is exactly what happened. Gas stations across the country adjust their prices on a daily basis not only to fuel prices but also to local competition. Gas prices at pumps always rise sharply in response to supply pressures, but fall very slowly because if consumers start paying exorbitantly high prices, it is only local competition between stations that sells. The ones that are causing those prices to go down again. Consumer demand for gas is relatively volatile; In the very short and long term, price changes can change consumer behavior but in the medium term, people have to go where they need to go. If you charge them an extra Rs per gallon to get there, most of the country is fine and really stuck paying for it as there are no public transport options. This is carpooling, living at home, or squeezing.
Biden’s proposal is one that he will likely have to make from a purely political point of view, and one that is going to cause quite a stir in Congress. In a tough re-election race, Democrats are eager for a gas tax break because they can boast that they have done something and because the mood of the entire consumer is getting sour enough, usually coming to power in the coming midterm elections. The whole routing of the party begins. Policy-minded Democrats are likely to oppose the move because it is not likely to actually reduce gas prices, even if it drains the federal infrastructure dollar. Republicans will have to decide whether to do what they claim to do it can Help the economy run in the medium term, which they have no intention of doing, but may be affected by the appeal of others to “get the federal government out of infrastructure dollars”, ready to demand gas. Abolish the tax altogether. After the expiry of the three-month tax break.
From a political point of view, this is all very messy and will continue to be so. From a purely policy standpoint this is a fairly bad idea – there is no way that a gas tax suspension will significantly reduce gas prices as it is a small, fixed amount that consumers are currently seeing. Prices are less than weekly fluctuations, even if the stations pass each one. Penny (which they won’t). And prices are almost certainly going to rise again as the summer travel season approaches, as it does every year; This will also reduce the real impact of the gas tax holiday on station prices.
Before anyone starts tearing their clothes on how bad this idea can be, however, the political realities here are automatically a consequence. It may be a bad policy to pass a token gas tax holiday that is more likely to go into the pockets of big oil than to provide relief to consumers, but at the moment conservative (fascist) shops and politicians boldly claim on a Republican basis. Have been That Biden is an economic adversary who has pushed up gas prices around the world through the power of absolute wickedness, and of course Probably Republican politicians in your state have sought to undermine our country’s democracy, use violence in the US capital, and support a national cover-up by passing new laws aimed at facilitating future coup attempts. Continued, but only if it is a choice between democracy and high standards. There will be no gas prices Any Choose cheaper gas than democracy?
Patriotism is being able to roll coal on your way to the funeral of the latest massacre victims. Conservative media Filled With interviews in which ordinary, everyday Americans insist gas prices are more important than whether Donald Trump, whom they will still vote for, has betrayed them.
So yes, maybe the Biden White House isn’t finally on the thin ice of policy if they’re thinking they need to make every token effort they can to get a large number down the street a little bit. . Half the country is convinced that 5 5 per gallon of gas is worse than fascism, and they have been told by Takkar Carlson and the tribe.
However, the bottom line is that we know why gas prices are so high. It’s in all the papers, really. At the height of the persistent regional epidemic crisis, the Russian invasion of Ukraine caused global chaos in the fuel markets as sanctions on Russia were lifted, buyers were required to find non-Russian vendors, or at least encouraged. Chaotic markets mean higher prices.
ButThe oil companies themselves are making record profits through it. This is not a sign of a struggling oil market, but an indication that oil companies are using existing markets to grab cash when they can.
Is this the equivalent of a price increase during a crisis? You can make the case, but most of the time, no one bothers to ask. Given the worldwide oil market, the rest of us have literally more than a barrel. Regional consortiums are conspiring to ensure that prices remain high and that oil-rich countries can milk their well-known stocks for the best possible price. US oil companies make record profits and yet insist that if they do not get every possible tax break the industry can be explored, society as we know it will collapse.
A better political ploy than a gas tax holiday could be a full-blown attack on the oil industry to suck its deepest record. Voters are already on-board with that message; Polling shows that voters strongly believe that it is “corporate greed” that is driving up prices, not political statistics, and more than four out of 10 voters believe that oil companies are “raising prices”. Biden could do more to isolate oil companies for their role in sabotaging plans to move the United States to renewable fuel sources, the number one reason for switching current price increases and slipping out from under their thumbs. As indicated.
But that, too, will soon become a “cultural war.” In places like Texas, state governments are likely to respond by declaring that oil extraction is now a religion, passing new laws that make it illegal to insult oil industry officials and provide cash to hunt anyone. Provide rewards. Oil companies are owned by our politicians as some other industries can claim.
It’s all a rich tapestry of sucking, but in a country where a good portion of the population can be convinced that a non-fascist president is deliberately raising gas prices to the detriment of the good, kind people of Resistville. Or although it is considered. Going forward, we are facing another election in which the fate of the country and the planet is likely to be second to none in the minds of many voters with new concerns that the SUV they just bought is now theirs. Are having to spend more money than they think to drive.
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