Home » World News » Democrats' gas tax suspension could worsen inflation, cost $20B, analysis shows
Democrats' gas tax suspension could worsen inflation, cost $20B, analysis shows
Natural gas prices could escalate amid Russia-Ukraine tension
FOX Business’ Lydia Hu explores the impact of rising gas prices as EQT CEO Toby Rice argues the solution is more infrastructure.
A proposal from some Senate Democrats to temporarily pause the federal gas tax in order to help combat the pain of surging prices at the pump could actually exacerbate inflation, according to a new analysis.
The Gas Prices Relief Act, introduced last week by a group of vulnerable Democrats, including Sens. Mark Kelly of Arizona and Maggie Hassan of New Hampshire, would eliminate the federal gas tax of 18.4 cents per gallon until the end of the year. It's intended to help consumers cope with high gas prices and is part of a broader plan to combat rising prices nationwide.
BIDEN ADMINISTRATION STOKING HIGHER ENERGY PRICES WITH OIL, GAS CRACKDOWN: ANALYSIS
A gallon of gas, on average, cost $3.51 nationwide on Wednesday, according to AAA – up from $2.51 a year ago. In California, gas prices are well over $4 per gallon. Prices are expected to climb higher as the country enters peak travel season and as heightened tensions between Russia and Ukraine threaten to further rattle the market.