There’s renewed talk of a federal gas tax holiday as gas prices remain near record high prices across the country.
Treasury Secretary Janet Yellen said on Sunday that a pause on the federal gas tax should be considered. Several lawmakers have floated the idea as the average price of gasoline hovers around $5 per gallon, and it’s even a bit more in Michigan.
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“That’s an idea that’s certainly worth considering,” Yellen said when asked if the administration is weighing it. She added that President Joe Biden wants “to do anything he possibly can to help consumers.” And Energy Secretary Jennifer Granholm said “it’s one of the tools,” but told CNN’s “State of the Union” that “part of the challenge with the gas tax, of course, is that it funds the roads.”
More: Yellen: Recession not inevitable, gas tax holiday weighed
So if there’s a pause on the federal gas tax, how much would you be saving?
Well, don’t get too excited. The federal gas tax is 18.4 cents per gallon. So that’s how much you’d be saving -- about 18 cents per gallon.
That’s not to say it wouldn’t help, of course. You’ll probably save at least a few bucks to fill your tank. But it’s not enough to solve the problem of rising gas prices.
Last week, President Biden called on oil companies to produce more as they report record profits.
“The crunch that families are facing deserves immediate action,” Biden wrote in a letter to seven oil refiners. “Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis.”
In March, Michigan Gov. Gretchen Whitmer vetoed a Republican proposal to suspend the state’s gas tax. She said the bill wouldn’t have reduced gas prices until next year at the earlier, and said funding for important infrastructure projects would be impacted. She has previously supported a plan to pause the federal gas tax.