(RoyalPatriot.com )- On Friday, Treasury Secretary Janet Yellen said a temporary suspension of the federal gas tax is among the options being considered to lower consumer costs.
With inflation at a 40-year high and wholesale inflation (the producer price index) at a staggering 10 percent, the Biden administration is struggling to find ways to provide relief to Americans suffering under the weight of Biden’s failed policies.
Yellen told reporters in Denver on Friday that the administration is looking at a “range” of options including temporarily waiving the tax on gasoline at the pump.
Six Democrat governors running for reelection in November sent a letter last week urging Congress to pass legislation to suspend the federal gas tax until next year.
Yeah, that’s not at all politically motivated.
Governors Gretchen Whitmer of Michigan, Jared Polis of Colorado, Tim Waltz of Minnesota, Tom Wolf of Pennsylvania, Michelle Lujan Grisham of New Mexico, and Tony Evers of Wisconsin sent a letter to Congressional leadership last Tuesday begging Congress to help their reelection prospects by throwing them this bone.
The governors noted that suspending the gas tax would drop the price of gas by more than 18 cents a gallon and allow Americans to that saving for “groceries, childcare, rent, and more.”
They’re expecting that extra 18 cents a gallon to do an awful lot of heavy lifting.
But Yellen said she is concerned that a temporary suspension of the gas tax would not benefit consumers but would, instead, go to the oil companies.
There may be valid reasons to oppose the idea of a temporary tax holiday on gas, but that isn’t one of them.
There is no foreseeable end in sight to the rise in gas prices. So any tiny savings from suspending the gas tax will be quickly erased by the ever-increasing price at the pump. And as long as the US isn’t increasing domestic production, when the year is out and the tax holiday ends, Americans will be facing the same problem.
The more effective and long-term solution is to boost domestic production by lifting the sanctions President Biden imposed on the US energy sector.
But so long as this administration and Congressional Democrats continue to kowtow to the “Climate cult,” that is the one solution that will never be an option.