Skip to content

Link Copied

This Chart Shows the Tiny Hole Biden’s Gas Tax Holiday Would Put in Inflation

At the current rate of inflation, President Biden’s proposed gas tax holiday would be undone in just 12 days, according to Sen. Tim Scott’s math.

SO WHAT

The back-of-the napkin calculation by Scott, a Republican from South Carolina, makes Biden look desperate.

WHAT HE SAID

In an appearance on Fox News last Tuesday, a day before Biden urged Congress to suspend the federal gas tax for three months, Scott called the reported White House plan “a game.”


"When we're going to try to trick the market and suggest that we can reduce your prices by alleviating the tax pressure, that's great," he said. "But unfortunately, the way that gas is ticking up every single week, that reduction in price is eliminated in about 12 days."

  • Scott's math jibed with AAA data, according to which the average national price for a gallon of regular gas hit $4.96 Tuesday, up from $4.12 two months earlier.
  • At that rate of increase — 1.5 cents per day on average — it would take about 12 days for the lifting of the 18-cents-per-gallon federal gas tax to be canceled out.

Meanwhile, the federal government would lose billions of dollars in annual revenue, Scott suggested, which would presumably have to be made up elsewhere.

  • A March report by the Penn Wharton Budget Model at the University of Pennsylvania found the reduction in revenue would about $20 billion, a major blow to the budget for highways and mass transit.
  • But, according to the report, much of the savings would probably not be passed on to consumers, meaning for most Americans, "the effects are small."
  • While national gas prices have since remained below $5 on average, analysts have predicted new highs of as much as $6 over the summer.

FLASHBACK: On the campaign trail in 2018 — Barack Obama, running atop Biden on the Democratic presidential ticket — dismissed the idea of a gas tax holiday as "a gimmick."

A BETTER IDEA?

Scott, echoing many oil industry experts and insiders, said the real solution to America's energy crisis is for the Biden administration to stop hampering U.S. production, unleashing investment and drilling.

  • "What we need is to have certainty and predictability so that those energy producers feel like they can invest billions of dollars to extract the energy from the soil so that we can use it in our tanks," Scott said.

Asked about the 2024 presidential election, Scott said he would "of course" support Donald Trump's reelection if the former president were the GOP nominee.

  • "The Republicans will always present a better solution to the problems we are faced with in the marketplace today than the Democrats," he said.
  • Scott deflected a question about his own rumored presidential ambitions, saying he was focused on his reelection to the Senate this year.

THE 4PM: A HIGHLIGHT REEL OF TODAY’S NEWS. FOR CONSERVATIVES. EVERY AFTERNOON AT 4PM.