Janet Yellen Says Gasoline Tax Holiday Should be Considered as Anti Inflation
News Synopsis
US Treasury Secretary Janet Yellen said on Monday that the gas tax holiday should be seen as a way to fight inflation, although it is "not perfect" and may not lead to a full reduction for people.
Yellen, speaking to reporters after a meeting with Canada's Finance Minister Chrystia Freeland in Toronto, said the research shows there is likely a higher transition rate to lower state fuel taxes than higher rates. with a generally lower federal tax of 18.4 cents/gallon on gasoline and 24.4 cents on diesel. The levels have not changed since 1993.
High fuel prices are a "significant burden on American households," says Yellen. A fuel tax holiday that temporarily eliminates these taxes, "although not perfect, it still is something to consider" to combat inflation, she said.
Yellen dismissed the idea of resurrecting the Canada-US Keystone XL oil pipeline project as a way to alleviate short-term upward pressure on oil prices caused by Russia's invasion of Ukraine.
US President Joe Biden, on his first day in office, denied a permit for Keystone XL, which would ship modified asphalt from Canada's oil sands to refineries in the Midwest and the Gulf Coast of the United States, assuming it will hold a lot of carbon fossil fuel consumption in the United States.
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