Joe Biden on Wednesday will call on Congress to pass a gas tax holiday that would run through the end of September.
The proposal actually comes as prices are slightly decreasing: the national average price per gallon of gas is $4.955 Wednesday
The tax gradually increased over the decades after its enactment, reaching its current level of 18.4 cents per gallon in 1993
Despite the holiday likely providing some quick relief at the pump, it may contribute to further inflation by providing an indirect stimulus to consumers
A federal gas tax holiday, which would require a law passed by Congress and signed by Biden, would suspend the tax for a temporary duration.
With the average price of a gallon of gas in New York standing at $5, the tax relief amounts to a 3.2% cost reduction.
Suspension of the federal gas tax would also reduce the cost of a $5 gallon of gas by less than 5%.
Gas tax holiday would almost immediately reduce the price, which could increase demand and worsen the supply
President Joe Biden has a holiday for you — at the gas pump. Biden is set to request from Congress a three-month, emergency relaxation of the federal tax on gasoline