The Hill: "Experts See Risk with Little Upside in Biden's Gas Tax Break"
Fellow Beia Spiller is quoted in this piece that analyzes the Biden administration's call for a gas tax holiday.
A suspension could also have environmental implications, according to Beia Spiller, transportation program director and fellow at Resources for the Future.
“There’s a lot of evidence out there that shows that when gasoline prices increase, people choose to buy a more fuel-efficient vehicle than they had,” Spiller told The Hill in an interview. Even if a suspension was short-lived and had little effect on what consumers actually pay, she said, “you will have a short-run, change in demand relative to [if there was] no gasoline tax holiday… so if you didn’t have the gasoline tax holiday, we would see better changes and changes in driving patterns.”
Common Resources — May 20, 2022
To Tax or Not to Tax? The Answer May Surprise You
Although cutting taxes on gasoline may look like an easy solution with clear positive outcomes, the reality is different. Cutting taxes ultimately fails to deliver on broad social benefits and leads to other negative effects.