Why cutting the federal gas tax might not help drivers much

the U.S. has faced in 40 years. Lowering retail gas prices by the full 18.4 cents would reduce the Consumer Price Index — a government inflation gauge that tracks the cost of a basket of goods and services — 0.18 percentage points, according to Goldman Sachs. The CPI in MayMeanwhile, these figures assume the full tax cut would get passed on to consumers. But it is fuel refiners and importers — not consumers — that have to pay the federal gas tax.

"There's no easy way to enforce it," Zheli He, an economist at the University of Pennsylvania, told CBS MoneyWatch."The prices are set at the gas-station level. So if you go two blocks, the prices might be different."to keep down prices this year, and other states have introduced legislation to do so. State fuel taxes are typically much larger than the federal tax, adding between 9 cents and 65 cents a gallon to the cost of gas.

"The U.S. is a big consumer of oil, and to the extent that [a gas tax holiday] increases demand for gasoline, that would drive up the price of oil quite a bit," he said.

Yes people will notice an 18 cent difference.

90 days is 3 months. If the average American fills up every week, that's 12 weeks. At 10 gallons to fill up, that's 120 gallons. 10 gallons times 18 cents is $1.80 per week saved or $21.60 over 3 months. Yeah, in today's Bidenomics, $21 saved is 1 fast food meal. Gee thanks. 🤣

Taxing oil companies 30% on gross sales and cutting all subsidies as well as all tax deductions would.

Big oil the one fucking all who drive🙄 they the main problem.

All bullshit

Only 1 of the 16 sectors of the stock market is up... Energy, up 33% Thanks to those filling up their cars with ridiculously suspensive gasoline.

One estimate put the oil companies possibility pocketing up to 80% of proposed savings. There isn’t a mechanism to prevent them from doing so. It’s going to take a drastic lowering of demand or higher production (which the companies don’t seem keen on doing) to lower prices.

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