Joe Biden wants to boost his numbers and make it look like he is doing something about gas prices and inflation. According to a Civiqs poll, he’s at 32 percent approval, his lowest ever. It looks like the Democrats will be in serious trouble come November.
According to a senior administration official, Biden now plans to ask Congress for a suspension of federal gas taxes for three more months. Federal gas taxes are now at 18 cents per gallon and 24 cents for diesel per gallon.
Although gas prices might fall a bit if Congress agrees to the idea, prices are increasing so fast that even an 18-cent “drop” might be absorbed. However, this doesn’t solve the ongoing problem of producing more energy. Biden doesn’t want to address the root issue. He’s repeatedly stated that he views this crisis as an opportunity for them to eliminate fossil fuels and achieve their radical green energy goals.
Barack Obama described suspending the gas tax as a “gimmick” in 2008 to save half of a tank of gasoline so that lawmakers could claim they had done something. Obama stated in April 2008 that “the easiest thing for a politician is to tell you exactly what it is you want to hear.” It is Biden’s attempt at helping himself and the Democrats in the midterms. To get votes, it’s only temporary. What happens if it goes back down and the problem isn’t solved? This is not what he’s referring to.
The tax holiday could make matters worse.
Concerns are also raised about the impact of a gas tax holiday on already high inflation. The Committee for a Responsible Federal Budget is a non-partisan group advocating for reducing the federal budget. It has previously been argued that suspending tax for a period of 10 months could increase gasoline demand and other goods when the economy already faces high consumer demand and pandemic-induced disruptions to supply chains.
The blog stated that while the gas tax holiday might reduce prices at the pump it will also increase demand for gasoline and other goods at a time when the economy is not able to absorb it. “The result could lead to even higher inflation rates in 2023,” the blog post stated.
Instead of increasing supply, he would actually increase demand, which would eventually make the situation worse. Biden might be hoping the Republicans will question his move, and it doesn’t go through. Then he can attack them.
Biden blames the oil companies and threatens them with legal action. The truth is that gas prices have risen since Biden took office, partly because he attacked energy companies. After demonizing and trying to get them in, he now wants them to produce even more. They can’t make a dent in their efforts to produce more.
About a week ago, the American Petroleum Institute and American Fuel & Petrochemical Manufacturers wrote a joint letter explaining to Biden that their refineries operate close to their maximum capacity but that almost half of their capacity was removed due to facilities converting to renewable energy. All the restrictions imposed by government agencies also limit capacity. The green energy policies he has promoted are directly responsible for Biden’s inability to refine more.
Michael Wirth, the Chevron CEO, also criticized Biden’s approach to instability and stated that if problems are to be fixed, they must stop. “Your Administration has largely tried to criticize and sometimes vilify our industry.” These actions are not helpful in meeting the challenges we face, and they are not what the American people should be rewarded.
Biden’s reply to that letter? “I didn’t know they’d get their feelings hurt that quickly,” was Biden’s response to the letter. He sees every challenge as a personal insult. He’s not listening to what they have to say, but it’s right for him and for American national security. A stable energy policy is essential. Biden’s approach was anything but.