Tbh the more I think about this one the more I disagree here that the tax holiday is a bad idea.
I definitely have not been happy with some of the Democrats rhetoric around 'greedflation'. I disagree with this because I do believe that there is enough competition among gas stations that prevent price gouging. I don't believe collusion is happening or even possible. Consumers also have technology now such as the GasBuddy app that helps keep the market competitive.
If you agree that the market is competitive and demand is relatively inelastic then doesn't removing a gas tax result in a partial benefit to consumers? Sure, you do also expect some demand increase and benefit to producers but as you point any remaining benefit that goes to consumers especially helps low-income families. It's a regressive tax to begin with, so why not take the opportunity to get rid of it and replace it with something more progressive down the line?
I do agree that the Federal gas tax holiday is a red herring with regards to lowering wholesale prices globally (because it removes an artificial constraint on demand), but I do believe that it helps low-income families domestically in the short-term. A far more egregious red herring I heard this week is calls to ban US crude oil exports! We need a piece from you on differences in crude qualities and the interconnectedness of the global oil market! I'd be interested to know why other solutions such as repealing the Jones Act (which I believe would help prices domestically) have not been floated as much.
Tbh the more I think about this one the more I disagree here that the tax holiday is a bad idea.
I definitely have not been happy with some of the Democrats rhetoric around 'greedflation'. I disagree with this because I do believe that there is enough competition among gas stations that prevent price gouging. I don't believe collusion is happening or even possible. Consumers also have technology now such as the GasBuddy app that helps keep the market competitive.
If you agree that the market is competitive and demand is relatively inelastic then doesn't removing a gas tax result in a partial benefit to consumers? Sure, you do also expect some demand increase and benefit to producers but as you point any remaining benefit that goes to consumers especially helps low-income families. It's a regressive tax to begin with, so why not take the opportunity to get rid of it and replace it with something more progressive down the line?
I do agree that the Federal gas tax holiday is a red herring with regards to lowering wholesale prices globally (because it removes an artificial constraint on demand), but I do believe that it helps low-income families domestically in the short-term. A far more egregious red herring I heard this week is calls to ban US crude oil exports! We need a piece from you on differences in crude qualities and the interconnectedness of the global oil market! I'd be interested to know why other solutions such as repealing the Jones Act (which I believe would help prices domestically) have not been floated as much.
Wouldn’t allowing drilling for more oil in the USA and allowing the pipeline allow for the cost of Crude oil to be lower?