It’s even possible that Louisiana and its residents might in the short-term benefit from a three-month gas tax holiday as proposed by Democrat Pres. Joe Biden and supported by the state’s only congressman from that party, but they surely lose big in the long run.
Biden has asked Congress to knock off the 18.4 cent per gallon federal excise tax temporarily as a means to quell surging gas prices. Nationally, they have about doubled since last spring, and in Louisiana as of this writing average about $4.50 a gallon for regular-grade fuel.
This could make for some good political optics, emanating the appearance of lowered prices at the pump, even as in reality it will do little to alter prices except immediately and briefly . Likely, a substitution effect will occur where demand increases because of the lower price, while supply will not have changed, so prices will rise to compensate. As well, “savings” only incompletely would be passed along the supply chain and the move negates Biden Administration policy fixated on preventing the myth of catastrophic anthropogenic global warming from fruition by increasing the amount of carbon burned into to atmosphere.