If you were told to describe Biden and his policies and a few words, while there are certainly some four-letter words that you’d want to say, “ineffective” and “goofy” are probably ones that would pop up somewhere on your list.
Well, those are exactly the words that Larry Summers, an economist who worked for the Obama Administration, used to describe the “gas tax holiday” that’s being floated in D.C. as a way to alleviate the gas price problem that’s gradually turning into a crisis.
As background, the price of crude oil for the US breached $90 a barrel and holding at that punishing level. Between Biden’s warmongering with Russia, which isn’t exactly a stimulant for international trade and energy production, and his anti-energy policies, some analysts are claiming that the price is not only likely going to stay there, but could breach the $100 mark and perhaps even hit $120.
What that means for the average American consumer is $4 a gallon gas prices, if not higher. While Californians and others stuck in blue cesspools might be used to those punishing prices, average Americans aren’t.
So, Democrats in Congress and officials inside the Biden White House are reportedly mulling a temporary “federal gas tax holiday” to alleviate some of the price pressure and hide the price increase until the price of crude decreases.
The federal gas tax is only about eighteen cents a gallon, however, so there’s a limited amount of pain they could hide as the price per gallon skyrockets. For example, the current average price is, according to ZeroHedge, somewhere in the neighborhood of $3.48. If the price per gallon hits $4, temporarily canceling the 18 cent gas tax wouldn’t even cover half of that increase.
Still, as Democrats are worried that the cost increase could hurt their reelection chances, purple state Democrats are reportedly planning on pushing their fellow Democrats to ignore the shrill screams of climate change crazies and pass the tax cut, at least for now. According to ZeroHedge:
The looming risks prompted Sens. Mark Kelly of Arizona and Maggie Hassan of New Hampshire, two Democratic lawmakers facing tough reelection fights, to unveil a bill last week that would suspend the tax until next January. Their backers include Sens. Debbie Stabenow (D-Mich.), Catherine Cortez Masto (D-Nev.), Raphael G. Warnock (D-Ga.) and Jacky Rosen (D-Nev.), who similarly face tough midterm contests entering November, when the party’s majority in the House and Senate could be at risk.
Still, it’s not the best of plans, at least according to Larry Summers, the Harvard economist that correctly predicted the inflation surge back when all the apparatchiks were saying it was just transitory. He reportedly views the plan as goofy, again according to ZeroHedge:
But Larry Summers, a former treasury secretary and top White House economist under prior Democratic administrations, called the idea of a gas tax holiday “short-sighted, ineffective, goofy, and gimmicky.” A high-profile critic of the Biden administration on the issue of inflation, Summers said the policy’s impact is at best unclear because it may boost demand in other parts of the economy.
Perhaps, rather than cut a relatively small tax, Biden should just sheathe the saber, makeup with Putin, and encourage American energy production. That sounds far more effective.
This story syndicated with permission from Will – Trending Politics
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