Vulnerable Democratic Senators up for re-election know they have a massive inflation problem of their own creation. Their solution? A stunt bill to suspend the gas tax through the election year – a transparent attempt to sidestep responsibility for their votes on massive spending bills that contributed to this problem in the first place.
One problem? No one is buying it. Here’s what they are saying about the bill:
Economists
Mark Zandi, chief economist for Moody’s Analytics, said on the gas tax suspension, “None of these ideas so far will help to a meaningful degree, and could do some harm because they could juice up demand at a time supply is constrained by the pandemic and worsen inflation…” (Mike Dorning, “Democrats’ Muscle-Flexing on Inflation Meets Reality and There’s No Easy Fix,” Bloomberg, 2/17/22)
Michael Feroli, chief economist for JP Morgan Chase, said the proposal “probably wouldn’t affect our inflation outlook.” (Mike Dorning, “Democrats’ Muscle-Flexing on Inflation Meets Reality and There’s No Easy Fix,” Bloomberg, 2/17/22)
Former Obama Treasury official Gilbert Metcalf said, “the bulk of the tax cut will not be going to consumers…” (Mike Dorning, “Democrats’ Muscle-Flexing on Inflation Meets Reality and There’s No Easy Fix,” Bloomberg, 2/17/22)
Larry Summers called the idea of a gas tax holiday “short-sighted, ineffective, goofy, and gimmicky.” (Tony Room and Jeff Stein, “White House, congressional Democrats eye federal gas tax holiday as prices remain high, election looms,” The Washington Post, 2/15/22)
Industry Experts
Bill Sullivan of the American Trucking Association said the proposal “seems driven by short-term political interest and poorly targeted to relieve the drivers of fuels and other inflation.” (Jessica Wehrman, “Bill to suspend gas tax is panned by transport groups,” Roll Call, 2/17/22)
Beth Osborne of Transportation for America criticized the proposal as “not a serious attempt.” (Jessica Wehrman, “Bill to suspend gas tax is panned by transport groups,” Roll Call, 2/17/22)
Ed Mortimer of the US Chamber of Commerce called the proposed gas tax holiday a “temporary stunt” because is offers “no promise of actually helping lower prices for consumers or improving the economy.” (Tanya Snyder, “Why a federal gas tax holiday doesn’t add up,” Politico, 2/17/22)
The American Road and Transportation Builders Association called the proposal “shortsighted and misguided.” (Tanya Snyder, “Why a federal gas tax holiday doesn’t add up,” Politico, 2/17/22)
National Stone, Sand & Gravel Association President and CEO Michael Johnson called it a “gimmick.” (Jessica Wehrman, “Bill to suspend gas tax is panned by transport groups,” Roll Call, 2/17/22)
Susan Howard of the American Association of State Highway and Transportation Officials said it “isn’t a solution that will have much, if any, impact on consumers.” (Jessica Wehrman, “Bill to suspend gas tax is panned by transport groups,” Roll Call, 2/17/22)
Other Democrats
Senator Joe Manchin said that the proposal “just doesn’t make sense.” (Jordain Carney, “Dem plan to suspend the gas tax faces bipartisan pushback,” The Hill, 2/15/22)
Senator Mark Warner said he would “be very averse to taking away infrastructure funding even in the short term.” (Jordain Carney, “Dem plan to suspend the gas tax faces bipartisan pushback,” The Hill, 2/15/22)
Senator Ben Cardin “expressed reservations” about the proposal, saying he would focus “on policies that would lower the cost of living…” (Mike Dorning, “Democrats’ Muscle-Flexing on Inflation Meets Reality and There’s No Easy Fix,” Bloomberg, 2/17/22)
“House Transportation Chair Peter DeFazio blasted the idea, saying the tax holiday would do little but ‘blow a $26 billion hole in the Highway Trust Fund.’ DeFazio said the pause would also fail to address the root of motorists’ misery: oil companies ‘raking in record profits’ and OPEC ‘manipulat[ing] supply to drive up prices.’ The bill includes a provision that would require the Treasury Department to ensure that the tax savings are passed on to consumers. But DeFazio dismissed that as toothless, saying ‘it is likely the oil companies will add the forgone federal tax to their coffers in whole or part.’” (Tanya Snyder, “Why a federal gas tax holiday doesn’t add up,” Politico, 2/17/22)
More DeFazio: “Suspending the 18.4 cents per gallon federal gas tax is not going to give consumers significant relief—if any at all.” (Jessica Wehrman, “Bill to suspend gas tax is panned by transport groups,” Roll Call, 2/17/22)