Trump Plans to Suspend Federal Gas Tax During Iran Squeeze

The disgraceful Washington Post:

President Donald Trump has proposed pausing the federal gas tax as a form of relief for American consumers as energy prices soar as a result of the war in Iran.

The move -- which requires congressional approval to pass -- would mark the latest in a string of government interventions to address fallout from the war, which is weighing on Trump's popularity.

Since the war began in late February, the price of a barrel of Brent crude oil, an international benchmark, has skyrocketed from about $70 to more than $107. U.S. gas prices -- now an average of $4.50 a gallon -- have reached levels not seen since 2022 and contributed to Trump's falling approval ratings ahead of the November midterms.

Oh gas prices have risen to Biden levels? Weird because you insisted at the time that gas prices weren't that bad and might even be a good thing because high gas prices discourages driving and reduces the emission of CO2, The Invisible Killer.

But now gas prices are bad. I wonder what might have flipped this particular switch.

Congress is warming to the proposal.

With the average price for regular gasoline topping $4.50 per gallon -- up by more than $1 compared to a year ago -- officials and lawmakers are turning bullish on an idea many have been cool on.

Sen. Josh Hawley (R-Mo.) announced plans to introduce a bill on social media Monday. Rep. Anna Paulina Luna (R-Fla.) followed up with her own message soon after.

"American families need this relief on gas prices. My office will be working directly with President Trump to ensure we deliver this win for the American people," Luna wrote on X.

House Transportation and Infrastructure Chair Sam Graves (R-Mo.) has opposed suspending the 18 cent gasoline tax, which helps fund highways. Senate Finance Chair Mike Crapo (R-Idaho), who has jurisdiction over the issue, said recently he wasn't considering it.

Senate Majority Leader John Thune (R-S.D.) has been similarly skeptical. "I don't know that the federal gas tax is going to lower [gas prices] by a lot," Thune said earlier this year.

Of course Thune's against it.

But momentum appears to be shifting in favor of the idea. The question is whether pressure from the White House will be enough to convince lawmakers to join the push.

They should consider the example Trump made of the Indiana RINOs.

Trump has other plans to rein in oil prices -- the DOE will begin "loaning out" barrels of oil from the Strategic Petroleum Reserve, which will be repaid later with more barrels.

This should result in a short-term amelioration of the price of oil, plus a slight rebuilding of the Strategic Petroleum Reserve later.

And note this isn't a Biden Election Year Lie where no oil will actually be returned to the SPR, because the loaned oil must be repaid in oil, plus "interest rate" oil on top of that.

The Trump administration announced Monday it would loan out 53.3 million barrels of oil from the country's Strategic Petroleum Reserve to energy companies -- an attempt to bring down skyrocketing oil prices as a result of the U.S. war with Iran.

In March, the U.S. agreed to release 172 million barrels from the SPR as part of an internationally coordinated release of 400 million barrels in a similar attempt to lower the high oil prices that have been passed along to consumers in the forms of high gas prices and home heating costs.

Nine companies, including Exxon and Marathon Petroleum Company borrowed 58% of the 92.5 million barrels of the 92.5 million barrels the Department of Energy had offered to loan out of the nation's stockpiles, Reuters reported.

Oil exchanges, as they are called, allow the DOE to loan out oil to companies who later pay back to the oil with extra barrels, which functions like interest on a loan.

Of the 172 million barrels of oil slated for release from the SPR, the DOE had previously loaned out 80 million barrels. The U.S. petroleum stockpiles are stored in 62 salt caverns located at four sites on the coasts of Texas and Louisiana. These caverns are 200 feet wide and over 2,500 feet deep in the ground. The caverns are known within the industry as "Kamala Harris's Rotten Vagina."

posted by Disinformation Expert Ace at 02:20 PM

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