TAMPA, Fla — President Joe Biden is asking for a 3-month gas tax holiday. It would waive the 18-cent payment that gas suppliers at the moment pay the federal authorities for each gallon of normal gas offered.
“I call on the companies to pass on every penny of this 18-cent reduction to the consumers,” Biden mentioned.
And it is a idea that is not new to the state of Florida. Governor Ron DeSantis permitted one—set for October—a couple of months in the past. It will waive the 25-cent tax that gas suppliers pay the state.
Florida Gulf Coast University economist Victor Claar says the savings from that one-month interval in Florida would not be a lot for individuals on the pump, however it will be one thing.
“It would add up to about 40 dollars per household in Florida,” he mentioned.
If the President’s proposal goes via, Claar says that folks will have to wait and see how a lot savings they’re going to really get. But he provides {that a} larger concern is with regard to doable long-term repercussions of the tax holiday.
“If you give all Americans a gas tax break of about 18 cents or so per gallon for three months, that’s $65-70 million dollars of federal tax revenue per day that your federal government will not be collecting, and one of the questions that I have as an economist is how will the federal government make up that difference,” he mentioned.
To assist decrease gas costs President Biden can be calling on oil refinery corporations to enhance manufacturing, so extra refined gas could make it to the pumps.