Drivers paying greater than ever earlier than on the pump might presumably see fuel costs dip a bit, as President Biden on Monday mentioned he’s exploring a federal fuel tax vacation.
“Yes, I’m considering it,” Biden advised reporters a few potential fuel tax vacation. “I hope to have a decision based on the data, I’m looking for by the end the week.”
The federal fuel tax is eighteen cents a gallon, so a fuel tax vacation might save the common driver about $3 every replenish. The common value for normal is now $5 per gallon in Massachusetts, ensuing within the common motorist paying greater than $70 to replenish their tanks.
“It’s not going to be a huge relief for most people,” mentioned Michael Klein, professor of worldwide economics on the Fletcher School at Tufts University.
Klein additionally famous that fuel tax income is earmarked for highways and bridges.
“We have huge infrastructure needs in the country, and that (a gas tax holiday) would be damaging to meeting those needs,” Klein mentioned.
Biden’s feedback in regards to the fuel tax on Monday come after Treasury Secretary Janet Yellen on Sunday mentioned a fuel tax vacation is “certainly worth considering.”
“President Biden wants to do anything he possibly can to help consumers,” Yellen mentioned on ABC’s “This Week.” “Gas prices have risen a great deal, and it’s clearly burdening households, so he stands ready to work with Congress.”
It stays to be seen how a federal fuel tax vacation would have an effect on demand, famous Mark Schieldrop of AAA Northeast.
“Overall, I still think the forces of supply and demand, and what’s going on with the economy will have the biggest impact on the long-term trend of gas prices,” he added.
Massachusetts State House leaders have continued to reject Republican proposals to quickly droop the state fuel tax.
On Monday, a spokesperson for House Speaker Ronald Mariano’s workplace referred the Herald to latest feedback he made relating to the decrease chamber’s consideration of some type of focused tax aid — however couldn’t say if the speaker would rethink suspending the fuel tax now that the federal authorities might do the identical.
Mariano has been pretty constant in his reply to questions on a fuel tax vacation, claiming that maneuver has solely saved drivers in Connecticut 7 cents a gallon.
“I’m not going to cut the gas tax so that more money goes to big oil companies,” Mariano mentioned Friday. “That’s not going to help you at the pump. There’s no guarantee that any tax cut on gas is reflected in a downward price at the pump.”
Source: www.bostonherald.com”