The midterm elections are still 10 months away but Democrats in Congress have been panicking about their prospects.
They aren’t good. The voters are exhausted by COVID restrictions, worried about inflation, and uncertain that the president is up to the task of governing.
Related: Inflation Costs American Households $276 More Per Month
When politicians get into trouble, the first thing they think about is how to throw money at the voters to distract them from their problems. Accordingly, Democrats in Congress are looking to ease the high cost of gas at the pump by suspending the 18-cent-a-gallon federal gas tax.
Of course, the $40 billion or so that the gas tax brings in would be lost, adding to the federal deficit. Some in Congress have mentioned taking money from other line items to maintain the Highway Trust Fund. But at this point, who cares? What’s $40 billion when Democrats (and Republicans) have been adding trillions of dollars to the federal budget deficit?
Along with the potential pause, Democrats aim to task the Treasury Department with ensuring that oil and gas giants pass the savings back to consumers. And party lawmakers have proposed shifting other federal money into the federal highway fund, which is normally financed through the per-gallon federal fees. The trust fund, which brought in more than $39.5 billion in 2019, suffers from an annual shortfall, partly because the gas tax has remained unchanged since 1993 — all while some consumers have shifted to electric vehicles that are not subject to the same fees.
For now, Democratic Senate leaders privately have explored the idea, according to two people familiar with the matter who spoke on the condition of anonymity to describe the conversations. Kelly also planned to pitch his fellow lawmakers at a regularly scheduled caucus lunch Tuesday, a third person said.
There is also a move underway to suspend the gas tax in several states.
The federal effort coincides with similar pushes among Democratic and Republican governors and state legislators who have explored their own gas tax holidays this year targeting local levies at the pump. Celinda Lake, a Democratic pollster who worked for Biden, said the idea is “very popular” when tested at the state level among voters.
“It could be a great example of the White House being in touch on how rising prices feel to people,” Lake said. “It’s a great way of showing the president is using all the tools in his tool chest to take on inflation, and it’s a great populist issue because people are always mad at gas prices and gas taxes.”
The White House doesn’t have a clue what it means to walk into the grocery store every week and be forced to endure higher costs on almost everything. They are about as “in touch” with how “rising prices feel” as they are with how parents feel about the public schools and teachers’ unions.
Gasoline at the pump is one dollar higher this year than it was in 2021. And there’s no sign that prices will be falling anytime soon.
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