Not much in the tank? President Biden this week called on Congress to pass a 3-month suspension of the federal gasoline tax. With lawmakers and economists alike balking at the gas tax gimmick, it isn't likely to pass. But it's still worth considering whether the proposed gas tax holiday is sound tax policy.
Don't overinflate the tires. Rising gas prices are certainly one piece of the inflation puzzle - but suspending the federal gas tax is a uniquely ill-suited policy for addressing rising prices. If policymakers are looking to change the tax code to help fight inflation, they should pump the brakes on a gas tax holiday and instead consider structural reforms at the federal and state levels.
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