A suspension of the federal gas tax would have negligible impacts for consumers and blow a massive hole in the transportation and infrastructure budget according to Rep. Earl Blumenauer.
An Oregon Democrat who has served in the House since 1996 is going against the wishes of several swing-state Democrats who want to provide any relief at the pump for consumers when the price of gas is low.
According to an analysis done by the Transportation Investment Advocacy Center, only 18 percent of state gas tax increases or decreases were passed on to motorists.
There is a need to provide American consumers relief from spiking costs, but there is no guarantee a gas tax suspension would reduce prices at the pump or stem the broader inflation affecting the global economy.
The bipartisan infrastructure bill was signed into law last year and remains one of the administration's most cherished political achievements.
The congressman wondered if Americans would see a reduction in costs.
He said that suspending the federal gas tax would not lower prices for consumers, would not have the desired political effect, and should be rejected by the administration.
According to a budget estimate from the Wharton School of Business at the University of Pennsylvania, a 10-month gas tax holiday would cause the federal government to lose 20 billion dollars.
It would blow a massive hole in the federal transportation and infrastructure budget even if the gas tax were suspended. The Highway Trust Fund has had troubling deficits for a long time, but now is not the time to give up on user fees.
If Biden backs the idea of a gas tax holiday, he could call on Congress to approve the bill.
Several states have enacted gas tax holidays.
The Treasury Secretary told ABC News that a gas tax holiday was worth considering.
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