Biden’s gas tax proposal faces uphill battle


President Joe Biden recently called on Congress to suspend the 18.4 cents-per-gallon federal gas tax through the end of September, though ultimate enactment of the proposal appears unlikely due to numerous political and policy concerns. Most notably, the proposal faces an uphill battle in Congress, with Republicans largely panning the plan, and many Democrats—including House Speaker Nancy Pelosi—declining to endorse the proposal.

Biden has also demanded that oil and gas companies pass on the benefits of the tax holiday to consumers, though lawmakers and economists have noted difficulties in the potential enforcement of such a mandate. Pelosi previously noted, “The pro [of the gas tax holiday] is very showbiz. ‘OK, let’s just do something, there it is.’ But it is not necessarily landing in the pocket of the consumer.”

Due to the razor-thin margins Democrats hold in both chambers, any gas tax holiday would likely need to be the product of negotiations among lawmakers in both parties and chambers. Barring a significant change in congressional sentiment, the outlook for ultimate enactment of the gas tax holiday remains bleak.



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