Biden's "Silly Proposal" To Suspend Gas Tax For 3 Months Faces Ridicule

US President Joe Biden has suggested the temporary suspension of the federal gas tax to combat fuel inflation. But why is it facing criticism?

Context: Fuel prices in the US, ie, petrol, diesel, and gas have skyrocketed since Biden took office.

• This coupled with food inflation and shortages is massively troubling the American people.

• Biden suggested to the US Congress (the American version of Parliament) to suspend the federal gas tax.

The current tax collection system: The taxes collected on gas fund highways and public transportation through the Highway Trust Fund.

• 18-cent tax per gallon on gasoline

• 24-cent tax per gallon of diesel

What Biden thinks: Biden claimed the tax could be suspended without harming the highway trust fund.

• He also called on the states to suspend their share of the gas tax.

• He continued to blame Russian President Vladimir Putin and the Russian invasion of Ukraine for fuel inflation.

• Biden also called on the energy companies to pass on the benefits to the consumers.

What Biden has tried so far: He had previously considered a tax holiday in February but did not pursue it.

• In April, he announced the release of 1 million barrels of oil per day from the nation's strategic petroleum reserve for the next six months.

• Biden also called on the American oil companies to increase their refining capacity and work with his administration on the inflation issue.

How the US Congress reacted: The suggestion to suspend gas tax did not go down well with either of the parties and the idea faced ridicule and criticism.

• Biden's own Democrat party members expressed cynicism and doubts over the effectiveness of this idea.

• Democratic Representative Peter DeFazio of Oregon, the chairman of the House Transportation and Infrastructure Committee, said that it's a "shortsighted proposal that relies on the cooperation of oil companies to pass on minuscule savings to consumers."

• House Speaker Nancy Pelosi - also a Democrat - has been previously skeptical of the proposal, saying there was "no guarantee" that companies would pass on the savings to consumers.

• Meanwhile, the Republican party called it an ill-thought and silly proposal which neither financially viable nor sound

• Senate minority leader Mitch McConnell termed the proposal an "ineffective stunt" and a "silly proposal."

What to expect going forward: President Biden is also seeking cooperation from fossil fuel-based companies. In his latest communication, Biden urged Chevron CEO Michael Wirth to increase refining capacity and still not give up on transitioning to renewable energy."