Biden says decision on gas tax exemption could come as soon as this week
“I hope to have a decision based on the data,” Biden said. He stopped to speak to reporters as he and his family strolled on the beach near his vacation home in Delaware.
Under a gasoline tax holiday, all taxes on the price of gasoline would be temporarily removed, providing buyers with some relief. It comes at a cost — gas taxes fund roads, as Energy Secretary Jennifer Granholm said on CNN’s “State of the Union” on Sunday.
Suspending the gas price tax would require congressional action, putting the fate of the party in the hands of an evenly divided Senate. Republicans have called the gas tax holidays political stunts, instead advocating for new regulations that would open the door to more drilling.
Even some Democrats, including House Speaker Nancy Pelosi (California), are skeptical and worried that the oil giants will pass the savings on to consumers.
Some states are taking matters into their own hands. New York, Florida, Georgia and Connecticut implemented gasoline tax holidays, while Illinois delayed a planned increase in its tax rate.
On Monday, Biden also told reporters that members of his team would meet with executives from major oil companies this week to demand an explanation of “how they justify making $35 billion in the first quarter.” He said he doesn’t plan to sit down with CEOs himself.
While the president has consistently blamed Russia’s invasion of Ukraine for price hikes at the pumps, he has also blamed the country’s major oil companies for not doing enough to bring prices down. In letters sent last week, Biden condemned oil companies for slashing “historically high profit margins” at their refineries.
“In wartime, far above normal refinery profit margins passed directly to American families are not acceptable,” Biden wrote. “Your companies must work with my administration to come up with concrete short-term solutions that respond to the crisis.”
He also threatened to invoke emergency powers if companies did not cut prices.
Companies seemed unmoved, as one answer of ExxonMobil, which insisted it had invested billions to increase its refining capacity.
The administration has introduced several strategies to help reduce costs at the pump, including releasing oil from the U.S. reserve.
Biden’s statements on Monday echoed what Treasury Secretary Janet L. Yellen said during an interview Sunday on ABC News’ “This Week.”
“It’s definitely an idea worth considering,” Yellen said of a tax holiday.
Biden, she said, wants to “do whatever he can to help consumers” and “stands ready to work with Congress” during a tax holiday.
Granholm on Sunday also agreed that a tax holiday was a possibility, but reminded viewers that the gas tax suspension could affect the nation’s infrastructure.
“Part of the challenge with the gas tax, of course, is that it funds the roads, and we just did a big infrastructure bill to help fund the roads,” she said. declared. “If we take away the gas tax, it takes away the funding that was just passed by Congress to be able to do that.”
On Monday, the president also appeared to suggest that his administration was considering sending gas discount cards to Americans, which would temporarily help cover the cost of gas for millions of people.
“That’s part of what we’re looking at,” Biden told reporters when asked about the cards. “It’s part of the whole operation.”
Last week, the Washington Post reported that White House officials were re-examining the idea of gas discount cards after initially proposing it. months ago. But aides discovered that the shortage of chips in the United States would make it difficult to produce enough cashback cards, said two people familiar with the matter.
White House officials are also concerned that there is no way to prevent consumers from using these cards for purchases other than gasoline, according to another person familiar with the discussions. Even if the administration passes the proposal, it will likely require congressional approval and face long odds among lawmakers who fear spending more money.
Tony Romm, Jeff Stein and Tyler Pager contributed to this report.