Who gains from pausing the gas tax? Probably not drivers — or Biden

floridafan said:
The auto companies cut back their purchase of chips during Covid, so most of the chip production went to other electronics, such as cell phones. All of a sudden demand for autos skyrocketed, but there were not enough chips produced.

Now explain how that is the fault of Democrats.
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They let chip production go to other countries in the first place.
 
Earl said:
Who gains from pausing the gas tax? Probably not drivers — or Biden

Even if Congress was in a mood to cooperate with Biden’s plan, most studies show that only a small portion of the savings from halting the tax would make its way to consumers.
Joe Biden speaks at the White House.

President Joe Biden also asked states to either halt their own fuel taxes or find other ways to help consumers. | Drew Angerer/Getty Images

By Tanya Snyder

06/22/2022 06:00 PM EDT

President Joe Biden’s call for a gasoline tax holiday took immediate flack Wednesday from Republicans, key congressional Democrats and even some industries that favor lower fuel costs.

But what would it actually do?

The hard realities: Even if Congress was in a mood to cooperate with Biden’s plan, most studies show that only a small portion of the savings from halting the tax would make its way to consumers. Meanwhile, the tax pause would take money away from Biden’s signature infrastructure law — and it probably wouldn’t offer his party much help with voters in November. It does, however, give Biden some cover to appear as if he’s at least trying to tackle an issue that’s hitting Americans in the pocketbook.

Here are some details you need to know about Biden’s proposal, which is unlikely to become reality:
What exactly has Biden proposed?

The White House wants Congress to suspend the 18.4 cents per gallon federal gasoline tax and 24.4 cents per gallon federal diesel tax for the next three months, “to provide direct relief to American consumers who have been hit with Putin’s Price Hike.” Biden also asked states to either halt their own fuel taxes or find other ways to help consumers. For example, California has considered $400 direct payments to vehicle owners. Chicago has been sending drivers $150 gas cards and $50 transit vouchers.
Biden proposes suspending the federal gas tax for three months
What are the chances of a gas tax holiday happening?

Slim.

Congress creates the laws that raise — and spend — money. But the lawmakers that Biden would need to enact his proposed pause in gasoline tax collections are lukewarm at best. A handful of Democrats are on record as supporting the idea, but many of them dislike Biden’s proposal — because it doesn’t go far enough.

Critics of a tax holiday include House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, who have said a pause would bring only meager savings for consumers but could enrich oil companies that are already earning record profits. Instead, they prefer legislation that would penalize price gouging by oil companies (who deny gouging).
Would the tax holiday save me money?

Probably not as much as you think.

If the 18.4 cents-per-gallon tax were paused as Biden has asked, consumers would save about $3 on the $75 it costs to fill up a standard sedan or crossover, assuming 15 gallons purchased at $4.98 a gallon.

And motorists may not even see that much. One reason Democratic leaders have opposed a gas tax holiday is skepticism that oil companies would pass along the savings at the pump, as opposed to just pocketing the extra money.

State-level gas tax holidays have yielded a mixed picture.

White House
Biden announces a likely doomed gas tax holiday

By Sarah Ferris and Adam Cancryn

The University of Pennsylvania’s Wharton School examined the impacts in the states that have paused their gas taxes in the last few months and found that in Maryland, 72 percent of tax savings were passed onto consumers, compared with 58 percent to 65 percent in Georgia and 71 percent to 87 percent in Connecticut. Still, the Wharton researchers found that “these price reductions were often not sustained during the entire holiday.”

And the dollar amount Wharton put on the savings from a potential gas tax holiday at the federal level was meager. In March, they found that suspending the federal gas tax through December would save the average person between $16 and $47 on gas while lowering federal tax revenue by about $20 billion.

Drivers would easily forget the small savings in the gas tax amid daily fluctuations in fuel prices, which can “drop or surge by 10 to 20 cents a gallon in a single [trading] session,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service. It could even backfire: “The problem with an 18 cents a gallon gas tax holiday is that it juices up demand when the supply-and-demand balance is already tilted toward tight supply.”

Kloza suggested that limiting U.S. fuel exports — thus keeping more of the gasoline supply at home — could be a more effective way of reining in domestic prices.
How would the tax vacation affect federal infrastructure spending?

In short, the government would have less money for projects such as highways, transit, bridges and related programs involving the environment and racial equity — including Biden’s prized $1 trillion-plus infrastructure law.

The federal government deposits taxes on gasoline and diesel fuel into the Highway Trust Fund, which it uses to pay for infrastructure projects across the country. According to the Congressional Budget Office, tax revenues into the fund in the current fiscal year should amount to about $44 billion, assuming the status quo.

https://www.politico.com/news/2022/...as-tax-probably-not-drivers-or-biden-00041536
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All good arguments. The savings don't mean a whole lot in the face of rising fuel prices (assuming the savings would actually appear at the pump).
 
PostmodernProphet said:
isn't it ironic that inflation was caused by the government spending what it didn't have, over $1T of that spending was for infrastructure, gas taxes are dedicated to infrastructure and now we need to cut the gas tax because of inflation.......
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....and the lost revenue will be covered by printing even MORE money...inflation.
 
PostmodernProphet said:
the deficits under Trump were caused by Covid.......
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No. They were caused by the House. Only the House can spend money or authorize bonds.
PostmodernProphet said:
you can't say the same about Obama who added more to the federal debt than any of any US president in US history, in fact more than all the other presidents in US history combined.......
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The House again...at Obama's urging.
PostmodernProphet said:
even Biden is on track to have double the deficits of Trump......
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The House again...at Biden's urging.
PostmodernProphet said:
in fact, if Manchin hadn't blocked Biden's BBB proposal he would have outspent Trump's record in his first year alone......
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Yup. Good thing it was blocked.
...but again, too little, too late. The Oligarchy is already broke.
 
floridafan said:
Trump added as much to our deficits in 4 years, as Obama did in 8.
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Nope. Only the House can authorize spending or issue bonds.
The deficit is NOT the debt, dumbass.
floridafan said:
Secondly, had trump not lied about the danger of Covid from day 1, and was honest with the American people, we would have not been in that situation.
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You are describing DEMOCRATS. Sorry dude, you can't blame YOUR problem on Trump.
floridafan said:
Thirdly, How much of Trumps deficits came from the bogus tax cuts, you remember the ones in which he promised American companies would use the money to hire additional workers?
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There is no such thing as a 'bogus tax cut'. GFM, if you are listening, here is another buzzword for you!
American companies DID hire additional workers!
 
Damocles said:
Brandon's handlers think that he'll get one or two points in polling from looking like he's trying to do something while uselessly flailing. They know that there are a certain percentage of idiots that think that flailing your arms around and looking active makes some people think you are "doing something" to help.
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The heart and soul of every government agency or department.
 
floridafan said:
Nope, the facts showed that the money corporations saved by the tax cuts went to stock buybacks, bonuses, with little if anything going to the workers. Exactly what happened the last time republicans cut taxes
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HAHAHAHAHAHAHAHAHAHAHA! Hallucinations are not facts, dude. Learn what 'fact' means. It does NOT mean 'proof' or 'Universal Truth'!
 
Into the Night said:
There is no such thing as a 'bogus tax cut'. GFM, if you are listening, here is another buzzword for you!
American companies DID hire additional workers!
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This one slid right by me (and I even responded to that particular comment too!). I'm off my game today.

It is now added to the list.
 
PostmodernProphet said:
there are no such "facts".......
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You aren't the brightest crayon in the box:

"Given that from 2017 to 2018 stock buybacks by S&P 500 companies increased by $287 billion (from $519 billion to $806 billion), the reality is that, through the corporate tax cuts, the federal government essentially funded $92 billion in buybacks by issuing debt and printing money to replace the lost corporate tax" ..
 
PostmodernProphet said:
national debt, cunt......it's what deficits are added to......
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I think you need to learn the difference between public debt and national debt, Einstein.
You posted figures for public debt and thought it was national debt, while all along my numbers were for budget debt.

You are definitely a few fries short of a happy meal!
 
Into the Night said:
Nope. Only the House can authorize spending or issue bonds.
The deficit is NOT the debt, dumbass.

You are describing DEMOCRATS. Sorry dude, you can't blame YOUR problem on Trump.

There is no such thing as a 'bogus tax cut'. GFM, if you are listening, here is another buzzword for you!
American companies DID hire additional workers!
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We have covered this numerous time sweetheart, you are fucking wrong again, as you were the other times
 
floridafan said:
You aren't the brightest crayon in the box:

"Given that from 2017 to 2018 stock buybacks by S&P 500 companies increased by $287 billion (from $519 billion to $806 billion), the reality is that, through the corporate tax cuts, the federal government essentially funded $92 billion in buybacks by issuing debt and printing money to replace the lost corporate tax" ..
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Yup. Democrats just kept printing money and issuing debt. They wouldn't actually cut the budget or anything.....!
 
floridafan said:
I think you need to learn the difference between public debt and national debt, Einstein.
You posted figures for public debt and thought it was national debt, while all along my numbers were for budget debt.

You are definitely a few fries short of a happy meal!
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HAHAHAHAHAHAHAHAHAHA! There is no such thing as 'budget debt'! GFM? Got another one for ya!
 
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