The Biden administration proposal to put federal gas taxes on hold is an ineffective talking point that shows the White House is out of ideas on inflation and gas prices, a client note from the investment bank ISI Evercore said Monday.
“This rollout of a politically oriented proposal that will not get enacted reinforces our belief that the White House sees little genuinely impactful that they are willing and able to do unilaterally on energy prices or inflation more broadly,” the independent investment banking advisory stated. “We continue to get questions from investors about how Democrats will respond to inflation before the midterms, and this announcement suggests that few new ideas are forthcoming.”
ISI Evercore also noted many Democrats have opposed a federal gas tax holiday, which includes former President Barack Obama and House Speaker Nancy Pelosi (D-CA).
“Way back in February, when Democratic Senators first started floating a gas tax holiday, it was immediately clear to us that the idea was a non-starter in Congress and should be viewed primarily as a midterm talking point,” the organization said. “We see the lengthy indecision about whether to embrace this policy as a further indication that the White House will continue to drag its feet on difficult decisions.”
ISI Evercore suggested the proposed tax holiday is a midterm election gimmick because it took four months to encourage congress to enact the measure. “This should have been a quick decision by the White House about whether this makes a good message for the midterms,” the organization said. “Taking four months to consider a policy is one thing — taking four months to decide on a talking point is another.”
On Wednesday, President Biden’s delivered a speech in which he demanded Congress enact a federal gas tax holiday. He did so as he blamed Republicans, Russia, and oil companies for the soaring price of gas.
Other than lifting the federal gas tax for consumers, the White House seems out of answers. But White House economic adviser Heather Boushey stated Tuesday that a “transition” to green energy from fossil fuels is imperative during costly gas prices. “For our national security, we have to be thinking about all the different ways we can transition to clean energy. And the president has been very committed to that,” she said when asked about the pain at the pump.
Polling shows 53 percent of voters believe Biden is trying to raise the price of gas to force citizens to use less fossil fuel, according to polling by Convention of States Action/Trafalgar Group.
The record-high prices come are fueled by Biden’s waged war on American oil. Biden’s administration has driven up private and public financing costs of oil drilling, halted drilling on public lands, and canceled the Keystone pipeline.
During Biden’s campaign, he promised he would “end fossil fuels” by terminating subsidies and drilling feasibility.
According to the Energy Information Administration (EIA), Americans will pay $450 more for gas in 2022 than they did last year on an inflation-adjusted basis.
Follow Wendell Husebø on Twitter and Gettr @WendellHusebø. He is the author of Politics of Slave Morality.
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