- Biden called on Congress to pass a 3-month federal
gas tax holiday. Barack Obama , then a presidential candidate, torched the same idea in 2008 when John McCain and Hillary Clinton pushed it.
President Joe Biden called on Congress on Wednesday to pass a three-month gas tax holiday as Americans face record-high energy prices.
While some economists have long questioned the effectiveness of such a policy, there's another notable skeptic that hits much closer to home for Biden: former President Barack Obama.
When the exact same idea was floated in 2008, Obama torched it as a "gimmick" and argued that politicians who pushed such a policy were really just interested in scoring political points and keeping their jobs.
"Well, let me tell you, this isn't an idea designed to get you through the summer, it's designed to get them through an election," Obama said, dismissing an idea floated by both Sens. John McCain, his eventual Republican opponent, and Hillary Clinton, his primary opponent and future Secretary of State.
At a different rally, Obama, who was poised to become the Democratic Party's presidential nominee, chided McCain.
"Half a tank of gas," Obama said at a North Carolina rally. "That's his big solution."
Sen.
In February, Senate Majority Leader Chuck Schumer hinted at the
"We're having a caucus discussion on it, but we haven't yet taken a caucus position," Schumer said, adding that a gas tax suspension was "one of many things" senators are considering as they try to lower costs for families.
Not every Senate Democrat was on board with the plan then. Sen. Joe Manchin of West Virginia threw cold water on it and argued temporarily cutting the tax could further swell the federal deficit.
It also didn't encounter much support on the other side of the aisle. Republicans lambasted the proposal and said it amounted to little more than an election-year stunt.
Sen. John Thune of South Dakota, the second-ranked Senate Republican, told reporters at the time: "I think it's just a clearly transparent political move to try and give political cover to a handful of Democrats that are up in states this year where gas prices are going to be a big issue."
Americans were already facing high energy costs, a pinch that has abated since a holiday was first floated. According to the latest Consumer Price Index report, energy costs are 35% higher than just a year ago.
In 2008, McCain and Clinton proposed suspending the gas tax for three months. If enacted, the proposal by Kelly and Sen. Maggie Hassan, a New Hampshire Democrat who also faces a tough reelection campaign, would last just over 10 months. Representatives for Obama, Kelly, and Hassan did not immediately respond to a request for comment. The Biden White House did not reply to Insider's inquiry either.
Obama himself was dogged by attacks that he flip-flopped on the issue during the 2008 campaign. As an Illinois state senator, he joked in 2000 that he wanted signs saying, "Senator Obama reduced your gasoline prices" to be placed on pumps in his district. CBS reported that he voted at least three times in support of suspending the state's gas tax but opposed efforts to gut it permanently.
Congress has not raised the tax since 1993, despite the Highway Trust Fund repeatedly running low on funds. Kelly and Hassan's proposal calls for general federal money to cover the costs of the holiday. The Committee for a Responsible Federal Budget estimates that such a holiday would cost $20 billion.
Some economists are also skeptical about the benefits. "I could easily see it being popular to propose a gas tax holiday. But if you actually got one then prices would barely go down," Jason Furman, a former Obama economist, wrote on Twitter.