President Joe Biden claims to have thought of a temporary solution to help create some form of relief for families. Gas prices have been on a constant rise, as a result, Biden has pitched a temporary gas tax holiday.
A gas tax holiday is when gas and diesel taxes are lifted for a time period. However, this revenue that is generated from federal tax on gas is what helps finance the Highway Trust Fund. The issue with a gas tax holiday is that the Highway Trust Fund is already running short on funding. A gas tax holiday would definitely not help with this issue either.
The proposal of a gas tax holiday is said to decrease gas prices by $1. This is since the federal gas tax is 18 cents per gallon and the federal tax on diesel is 24 cents per gallon.
Both Republicans and Democrats seem to not fully be in favor of Biden’s new proposal. Republicans feel this is simply one of Biden’s gimmicks in hopes to push the blame away from him. Democrats on the other hand seem more on board, however, not fully. Senator Tom Carper, shares that he thinks this proposal of gas tax holiday is a “shortsighted and inefficient way to provide relief.” This seems to be the similar reaction from other Democrats as well.
We can all agree that times are hard, prices are only rising, but trying to agree on the correct solution is the main problem at hand.
This blog post is part of the CIMA Law Group blog. If you are located in Arizona and are seeking legal services, CIMA Law Group specializes in Immigration Law, Criminal Defense, Personal Injury, and Government Relations.
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