Janet Yellen Says Gasoline Tax Holiday Should be Considered as Anti Inflation

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Janet Yellen Says Gasoline Tax Holiday Should be Considered as Anti Inflation
21 Jun 2022
6 min read

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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