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Biden to call for a suspension of all federal gas/diesel taxes for three months

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$.0184/g federal makes a dent, but it’s only a dent.  Idaho is a combined $0.504 after raising the state excise to $0.32 from $0.25 a few years ago.  That’s $20/tank on a fill up of just under 20g.  More for a pickup w/larger tank.  So, not inconsequential, but states will need to join in some way to have a real impact.

 

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On 6/22/2022 at 6:28 AM, grandjean87 said:

$.0184/g federal makes a dent, but it’s only a dent.  Idaho is a combined $0.504 after raising the state excise to $0.32 from $0.25 a few years ago.  That’s $20/tank on a fill up of just under 20g.  More for a pickup w/larger tank.  So, not inconsequential, but states will need to join in some way to have a real impact.

 

Attacking a supply problem with a demand solution. It will make the problem worse, while taking away money needed for roads. This is a dumb idea. 

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On 6/22/2022 at 6:48 AM, grandjean87 said:

Raise the gas tax!

A fed gas tax holiday will spur demand just enough that prices will rise to eliminate the savings to the consumer. So the revenue is shifted to the energy producers and suppliers  and away from money from roads. It's a Hail Mary from an administration who has no clue what to do. 

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On 6/22/2022 at 8:57 AM, bornontheblue said:

A fed gas tax holiday will spur demand just enough that prices will rise to eliminate the savings to the consumer. So the revenue is shifted to the energy producers and suppliers  and away from money from roads. It's a Hail Mary from an administration who has no clue what to do. 

Don’t bother, he’s lived his life on the government dime.  

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On 6/22/2022 at 8:45 AM, bornontheblue said:

Attacking a supply problem with a demand solution. It will make the problem worse, while taking away money needed for roads. This is a dumb idea. 

It was dumb in 2008 too, the last time it was proposed. thankfully it was shot down then. 

We did do cash for clunkers then which may have helped the demand side. IDK how much more room we have there for improvement nowadays. Cash to plugin hybrid/electric maybe? IDK. 

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On 6/22/2022 at 6:45 AM, bornontheblue said:

Attacking a supply problem with a demand solution. It will make the problem worse, while taking away money needed for roads. This is a dumb idea. 

Actually, not that simple.  Gasoline is still in a price range where it’s highly inelastic (PEoD).  Many people have to buy gas.  If yer gunna have a tax cut…

Btw: What’s the main supply problem(s)?

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On 6/22/2022 at 6:58 AM, tailingpermit said:

Don’t bother, he’s lived his life on the government dime.  

It’s great.  Go in late and get off early.  Teach a little CRT. Lots of vacation time.  Helluva pension.  Not retired California cop level, but still damn good.  Thanks for your tax contributions. 

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On 6/22/2022 at 9:01 AM, grandjean87 said:

Actually, not that simple.  Gasoline is still in a price range where it’s highly inelastic (PEoD).  Many people have to buy gas.  If yer gunna have a tax cut…

Btw: What’s the main supply problem(s)?

Drilling companies management are tired of supplying themselves into oblivion in every boom so they're a lot more hesitant to open the floodgates of drilling, and refining isn't going to increase capacity because everyone can see the writing on the wall with regards to refined gasoline demand in the mid term.

So we're pretty much just gonna have to suck it up until ~20% of the market is plug in hybrid or electric which greatly reduces demand. That's my read of it. 

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On 6/22/2022 at 7:07 AM, happycamper said:

Drilling companies management are tired of supplying themselves into oblivion in every boom so they're a lot more hesitant to open the floodgates of drilling, and refining isn't going to increase capacity because everyone can see the writing on the wall with regards to refined gasoline demand in the mid term.

So we're pretty much just gonna have to suck it up until ~20% of the market is plug in hybrid or electric which greatly reduces demand. That's my read of it. 

Yeh on the minors. Majors and some mids made secular changes first half of the prior decade.  There might be another multi-year run for crude, but refining is a challenge.  The chemical biz side will continue to be a tailwind, but the main downstream production isn’t likely to expand domestically (soon).

I’m agnostic on any gas tax holiday.  It’s not the type of fine-tuning policy objective that seems to work efficiently.  But, it would be helpful to many families.  

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On 6/22/2022 at 9:06 AM, grandjean87 said:

It’s great.  Go in late and get off early.  Teach a little CRT. Lots of vacation time.  Helluva pension.  Not retired California cop level, but still damn good.  Thanks for your tax contributions. 

What are you, 63 - never achieved your dreams?

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