Washington Watch: Biden urges Congress to provide gas tax holiday, but analysts predict lawmakers won’t do it

by | Jun 23, 2022 | Stock Market

While President Joe Biden called on Wednesday for Congress to suspend federal gasoline and diesel taxes for three months, analysts criticized his proposal and predicted that it won’t draw sufficient support from U.S. lawmakers. Suspension “would require congressional action, which is exceedingly unlikely,” said Tobin Marcus, a policy and politics strategist at Evercore ISI, in a note on Wednesday.

The rollout of a “politically oriented proposal that will not get enacted reinforces our belief that the White House sees little genuinely impactful that they are willing and able to do unilaterally on energy prices or inflation more broadly,” added Marcus, who worked as a Biden economic adviser when the veteran politician was vice president. “We continue to get questions from investors about how Democrats will respond to inflation before the midterms, and this announcement suggests that few new ideas are forthcoming.” Related: As Biden fights inflation, economists warn his weapons for this battle look ‘extremely limited’ Biden, for his part, said in a speech on Wednesday that “a gas tax holiday alone is not going to fix the problem, but it will provide families some immediate relief.” “I call on the companies to pass along every penny of this 18-cent reduction to the consumer …

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