Biden Wants a Three-Month Pause on the Gas Tax Which Won’t Do Much
Pelosi refused to endorse the move.
President Joe Biden wants to pause the federal gas tax for three months. Supposedly we will save $1 on a gallon of gas.
Considering non-ethanol gas in Oklahoma is at $4.99 I’ll only pay $3.99! Yay? (Honestly, I shouldn’t complain after being in the northeast for over a week.)
Putin’s price hike, you guys. The White House mentions that in the first line of the press release. It’s precious that he thinks we still believe that lie.
But Biden wants Congress to suspend the tax:
Right now, the federal government charges an 18 cent tax per gallon of gasoline and a 24 cent tax per gallon of diesel. Those taxes fund critical highways and public transportation, through the Highway Trust Fund. But in this unique moment, with gas prices near $5 a gallon on average across the country, President Biden is calling on Congress to suspend the gas tax for three months – until the end of September – to give Americans a little extra breathing room as they deal with the effects of Putin’s war in Ukraine.
The President is also calling on Congress to make sure that a gas tax holiday has no negative effect on the Highway Trust Fund. With our deficit already down by a historic $1.6 trillion this year, the President believes that we can afford to suspend the gas tax to help consumers while using other revenues to make the Highway Trust Fund whole for the roughly $10 billion cost. This is consistent with legislation proposed in the Senate and the House to advance a responsible gas tax holiday.
How about we get rid of the tax and appeal the 16th Amendment while we’re at it? Taxes suck.
Anyway! I’ll get to the Highway Trust Fund later. The national average is around $5.016 per gallon. It could hit $6 by the end of summer. We’re paying $300-$400 a month on gas. Maybe even more!
Biden has tried to blame everyone and everything on the high gas prices. I guess this is the last resort because Democrats have a history of laughing off the suspension of the gas tax:
Democrats have long mocked the idea of a gas tax holiday. In 2008, running against John McCain, Barack Obama dismissed it as a political “gimmick.” Speaker Nancy Pelosi sniffed at the idea this spring, and on Wednesday she refused to endorse it. She has claimed oil companies wouldn’t pass the relief to consumers, and Treasury Secretary Janet Yellen has echoed that view.
Pelosi said on Wednesday: “We will see where the consensus lies on a path forward for the President’s proposal in the House and the Senate, building on the strong bills to lower prices at the pump already passed by House Democrats including the Consumer Fuel Price Gouging Prevention Act and the Lower Food and Fuel Costs Act.”
Rep. Richard Neal (D-MA) wants to make sure the oil companies would pass the relief to the consumer and not pocket it: “The challenge on the gas tax is: Is the savings really going to flow to the consumer? Or is it going to be pocketed by the oil companies? Those are legitimate questions.”
Fox News Auto did all the math for us. How much would you actually save if the tax goes away for three months? Not much.
Ford F-150: $35.50
Toyota RAV4: $23.00
Toyota Camry: $21.60
Toyota Highlander: $28.75
Honda Civic: $19.10
Chevy Tahoe: $40.59
But Biden and the federal government won’t cut any red tape. He concentrates on solar panels rather than giving the oil companies more freedom. It has nothing to do with Putin:
In recent months, a shortage of refining capacity has been driving up gasoline prices. Mr. Biden ordered U.S. refiners last week to come up with short-term solutions to increase capacity—or else. But Mr. Biden won’t take regulatory steps to ease the refinery shortage such as reducing renewable fuel mandates. He also won’t issue a waiver to the Jones Act for transporting fuels. He refuses to take any action that would challenge the climate lobby.
One result is that LyondellBasell can’t find a buyer for its aging Gulf Coast refinery, notwithstanding the industry’s current hefty profits. The refinery plans to shut down by the end of next year, which could push up gasoline prices even more. Mr. Biden could help lure a buyer by suspending all policies aimed at punishing fossil fuels, but he won’t.
Also, this not the time “for profiteering,” you evil oil companies! Give me a break. They cannot make a product without profits.
It will also bite us plebes in the butt because if Congress doesn’t take money from the Highway Trust Fund they “would have to deficit spend or find revenue somewhere else.” That means…taxes elsewhere.
We’re screwed.
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That’s like being unable to make your credit card payments, so the bank raises your credit limit.
18 cents.
Even if you don’t tweet,,, this is worth looking at..
https://twitter.com/mattdizwhitlock/status/1539779573981773829?s=20&t=scYP54EnF0mPvaMtqjA5wA
It’ll do one thing: increase inflation.
Yes, these new politicians are operating under modern monetary theory, which says you can spend as much as you want without causing inflation as long as you tax the full balance back and don’t spend the tax revenue (which has never happened in US history).
The only more surefire way to increase inflation than spending the tax money is to never collect the tax money in the first place.
At best this guy is a corrupt fool. Now we have him at his worst.
Obama’s third term….
Now after years of proudly announcing that they want to end gas forever and intentionally skyrocket prices, they’ve succeeded, and NOBODY is buying that Ukraine is responsible.
Gas prices are something that EVERYBODY has to deal with on a regular basis.
The Democrats problem is that gas went so high, so fast, that even the normies understand that they are responsible for the insane gas hike. Their usual lies and bullshit simply aren’t working because people can SEE it every time they fill up their cars.
Even if it did work to lower prices, it would increase demand which isn’t the problem. It’s supply and that is where Potatus Brandon has declared war. Oil prices would plummet if all he did was call of the war on oil production. Prices are set in the futures market where the certainty of less and less supply in the future due to suicidal government policy is driving prices through the roof.
Government by fiat just doesn’t work…. unless destroying the economy IS what the government is commanding.
What a joke this retarded pedophile is. F*ck him and everyone that voted for his corrupt. groomer azz.
A quick Economy 101 lesson for those who don’t get it. Price is set by supply and demand at the equilibrium point where supply and demand are in balance. If you lowered the cost of producing oil, that wouldn’t lower the price in itself. It would lower the break-even level inviting competition by less efficient producers thus lowering price via competition because more supply enters the market.
So service stations to lower their prices without a corresponding lowering of their costs only creates shortages which will create long waiting lines at the pump and eventually government rationing. In Venezuela, gasoline used to be almost free to citizens due to the profits from exporting oil. Government steps in and takes all of the profits crushing the industry and now social equity is the order of the day. Gasoline is very expensive… if it is available at all.
Marxism, fascism, Fourth Reich,…. none of them work. It is economic suicide. Sounds like a great idea! Let’s go there Brandon!
Let me add a “production” lesson too. ( a lot of people on my projects here here ask me about actual production- seems there is a bit of misunderstanding on the conversion of oil to gas)
this is a gross simplification but correct for a general understanding of up and downstream production for people outside the industry.
Starting with a barrel of crude ( crude is pumped from the ground and basically just particulate filtered and not including shale and tar viscosities)….
Imagine a pie chart ( the column) and in that chart is an allotment for X amount for gasoline, Y amount for kerosene, Z for diesel, a for polymers (plastics), b for lubricating oils/greases and so on. (Many things come from the oil- not just gas and ALL are in demand)
This is how refineries and lines are basically set up as to what they produce in terms of volume and type. (then they make raw, semi finished and some finished product- others get sold in bulk)
Part 2 is the “volume” of crude to make the “volume” of finished product ( no such thing as a 1:1 so a barrel of oil is NOT a barrel of gas or a .lb of plastic or a tube of grease or whatever) They would be a second pie chart with the % of crude as it applies to the finished volume of the first)
This is where politicians and the media demonize the industry ( and the industry historically shuts up because its a fruitless effort to argue it) but its based on a false premise.
This is what the O/G means when they say they have not invested in “infrastructure” ( they are talking about fuels and solvents)- they ARE investing in the other areas. That’s a business decision as driving and fuel demands reduced during the scamdemic ( not personal driving as much as commercial carriers but both combined)
In theory ( and reality) they could switch over lines (a conversion cost but reasonably quick) and refine more “gas” (MOGAS) than the US could use and the price would drop to probably under $1 a gallon. Here’s that equal and opposite reaction now. Your car oil just went to $30 a quart, heating oils to $40 a gallon and the cost of everything plastic goes through the roof because that manufacturing capacity had to be reduced to meet the solvent ( fuel) demand.
Its a 2 part equation.
We need the infrastructure ( more capacity in terms of the physical lines) to meet demand on all product families and not create another crisis while pretending to solve one.
We need the additional crude to make all commodities in required volumes.
Don’t believe the media and political lies. These are “created” crisis’ by politicians- not by the oil industry. Everyone in the industry knows this.
Taurus,
Great explanation. Can you also explain the prices for product within the ‘crack’ for a barrel of oil and how the market works periods such as:
1. Year 2019; pre covid and more favorable investment climate for oil gas
2. Year 2021; Biden hostile reg environment before Ukraine
3. Year 2022: Hostile regs and investment climate plus Ukraine
Basically to demonstrate how decisions are made about what products result from refining in those three sorts of environments.
Sure but only at a high level because this is not even close to a linear conversion with hundreds of “nuances” but in general…
FCC (Fluid Catalyst Cracking) columns are generally set to a specific product and run that way. ( cracking is basically distilling to a level of purity and/or concentration). Then the “residue” is further processes like a stair step process.
The market ( and “futures”) is what the anticipated need is for a given column product over whatever the market period is and “x” amount of oil is allotted for that at cost Y for run volume of Z. ( gotta tool the line up to run whatever it is FIRST then make sure the residuals can be processes on their own so its a multi stage operation)
The eventual decision is made based on projected cost of materials over projected usage divided by capacity for the period ( not significantly different than any other business model)
Costs for the cat set up and run are amortized over the end product mostly and then carried to subsequent products.
The “variable” then becomes if the refinery producing a finished product, a base compound or raw materials for other products ( paints, wax, plastics and so forth).
Not a pure linear static model.
Pre Covid was simply allowing the refinery to act according to the market ( best case) They could get crude and run as they saw fit.
Then Covid hit ( ALL fuels reduced in demand due to everything we experienced)- ( that’s about 70% of the entire column based model so 70% of your profit took a 50% nosedive)
Then add all the costs, penalties and regulatory compliance.
Still making money but the cash flow isn’t there to maintain and upgrade so lines get throttled or down ( that’s the lack of investment- the process proper is very destructive in terms of wear so require a lot of PM and replacement as well as changeovers/expansions which are on hold)
The only reason the Ukraine effects US production is the strangle on using our own oil resources requiring us to go OCONUS for crude. ( that goes back 50 years and is a strategic call)
That’s why opening the Strategic reserves is a waste of time and a gas “holiday” means nothing. None of tat addresses the root causes.
So, rather than reinvesting in the production, O&G take the profits and post them to non product investments (EBIT) such as other industries and whatnot to make up the shortfall.
Basically the O&G industry gets hogtied and ball/chained and the politicians holding the rope bitch because they cant win the race.
That’s a very basic simplification of the overall model but good for a general overview.
Thanks. I appreciate your willingness to deliver that explanation. I could have thrown out a much lesser quality layman’s explanation that wouldn’t have been nearly as complete or useful as your more informed analysis.
It allows the US to bid 18 cents more gas away from other countries, where the price will go up.
Only because we have to buy it FROM other countries. As a commodity that is vital to the security of the nation, it could be restricted from sale outside the country if necessary AND we were self sufficient like when DJT was in office.
Well, in truth, “buying” from other countries is vital to our national security ( we run them out of gas and keep our oil has always been the doctrine since WWII)
we also ARE self sufficient (in terms of resources and capacity)- its all politics that are artificially restricting us from using it.
A manufactured crisis for political ends.
I agree, up to a point. But as far as us being self sufficient? It is not artificial if it the restrictions are real. It’s like saying, “I won’t starve, look at all the seeds I have!” The longer our production stays off-line, the longer it will take to ramp up again, much less meet the growing need of our new immigrants.
That’s a non sequitur circular argument though.
We ARE self sufficient. ( in every meaningful measure relative to the subject)
Artificial self induced restrictions are just that- artificial and self induced.
Adding or restoring “production” with the constraints in place is a zero sum end because they too will fall victim to the same.
Want to restore self sufficiency?- fix the politicians.
The Left will do all it can to avoid doing what’s right. #LetsGoBrandon #fjb
Drill, baby, drill. Let’s go,