House Democrats are complaining as they approach the Fourth of July holiday, doubting if President Biden’s planned gas-tax moratorium would benefit consumers and angry that it has brought to light internal party conflicts as the November election campaign enters its last stretch.
Democratic leaders are looking for methods to immediately relieve customers’ annoyance as gas prices nationwide approach and in some cases surpass $5 per gallon.
Last week, as July 4th approached, Biden used his platform to advocate for one such tactic, pleading with Congress to temporarily suspend the federal gas tax for the duration of the popular summer travel season.
On Capitol Hill, the concept met with a lukewarm reception from even some of Biden’s closest Democratic allies, including Speaker Nancy Pelosi of California.
Democrats who oppose the president are concerned that oil firms will just keep the savings for themselves rather than passing them along to customers.
Politically, the opponents are also unhappy that Biden would promote a concept that he was aware was unpopular among Democratic leaders in Congress, causing a divide at a time when the party was attempting to present a united front ahead of the elections in November.
“I believe he was attempting to convey to the American people that he was paying attention.
One House Democratic leader, who wished to remain unnamed to criticise a White House supporter, said, “But he clearly wasn’t listening to the congressional leadership. It didn’t improve the situation.
The internal conflicts show the discontent within the Democratic Caucus as the cost of a variety of consumer goods has risen steadily since the beginning of last year, defying Democratic efforts to keep prices in check, pushing Vice President Biden’s approval rating well below average, and making it more difficult for the Democrats to maintain control of the lower chamber in the midterm elections.
According to the Energy Information Administration, the price of gas has increased dramatically over the past few years, jumping from a national average of $2.33 per gallon in January 2021 to $4.93 last month.
Last week, Biden urged Congress to suspend the federal gas tax, which is currently 18.4 cents a gallon, and for the states to do the same with their local levies in light of the trend.
He stated, “I completely understand that a gas tax holiday alone is not going to cure the situation, but it will provide households with some immediate respite — just a little breathing room — as we continue working to bring down costs over the long term.
Some moderate Democrats who are up for reelection in November have come out in favour of the plan, especially in the Senate where many vulnerable senators are supporting legislation to suspend the gas tax until January.
However, the general attitude seems to pit Democrats directly against their White House leader.
Biden’s goals, according to Rep. Madeleine Dean (D-Pa.), are commendable, but like many Democrats, she doubts that consumers would see anything but meagre gains.
“I’m worried that the well-intentioned gas tax holiday won’t have much of an effect on specific individuals.
Dean added, “My worry is that we won’t experience it. “I believe that the gas companies would likely skim half of the 18.4 cents. People would therefore notice only cents on the gallon.
I want us to come up with a solution that truly has a bigger impact, she said. “As a result, we are considering other options.”
Legislation to impose a one-time windfall tax on the major oil firms, which have recorded record profits this year despite rising consumer costs, is one of the available options.
Returning those surplus revenues to the American people directly is one way to make a difference, Dean added.
There have been no updates regarding the leadership’s potential intentions to take into account either proposal, a senior Democratic aide said on Friday. However, if party leaders’ responses are anything to go by, the gas tax holiday isn’t going anywhere anytime soon.
Pelosi, who earlier in the year had flatly opposed the tax break, issued a meek response to Biden’s idea, promising only to “examine where the agreement is on a road forward.”
One of the most vocal opponents of the tax break is Rep. Peter DeFazio (D-Ore.), chairman of the House Transportation Committee. He has warned that it would only result in “minuscule” consumer savings while depleting the Highway Trust Fund, which supports important infrastructure like roads, bridges, and other buildings.
Additionally, DeFazio’s concerns about funding have been “sympathetically” shared by House Majority Leader Steny Hoyer (D-Md.).
“The difficulty with the gas tax is whether the consumer will actually benefit from the savings. Or will the oil companies keep it all for themselves?
Representative Richard Neal (D-Mass. ), head of the committee that draughts tax legislation, reiterated this. “Those are reasonable inquiries.”
The Federal Reserve’s decision to keep interest rates at historic lows through 2021 is one of many factors driving the painful trend, according to administration officials who have defended their anti-inflation strategy throughout the debate.
Other factors include Russia’s invasion of Ukraine, supply-chain problems brought on by the ongoing coronavirus pandemic, and supply-chain problems caused by the Federal Reserve’s decision.
To lower gas prices, Biden has already released millions of gallons of oil from the nation’s emergency stockpile, known as the Strategic Petroleum Reserve.
The president is also preparing to travel to Saudi Arabia this month, which is much anticipated, but he has stated that he won’t use the trip to pressure Saudi officials to increase output.
In light of this, officials claim that the proposed tax break is only a small part of a wider plan to bring down fuel prices.
In an interview with CNN’s Dana Bash last week, Vice President Harris declared, “It’s one of our biggest objectives as an administration.”
Few people have been persuaded to support the idea of a gas tax holiday by such feelings. However, even several of the Democrats who opposed the initiative believed it was worthwhile to resist.
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Dean added, “The government is sending a message that they understand the agony at the pump and they understand the anguish in the grocery shops. “We’re making every effort to do whatever we can.”
