A Gas Tax Holiday Is Good Politics But Bad Economics: Editorial

Even as the US and Iran wrestle over an agreement to reopen the Strait of Hormuz, surging gas prices have turned the government’s attention to a perennially popular fiscal scam: Ease the pressure on household budgets with a gas tax holiday. In reality, such a plan to curry favor with voters would make them, all things considered, worse off. Responsible policymakers should have nothing to do with it.

Back in 2022, President Joe Biden also called for a temporary suspension of the gasoline tax when Russia’s attack on Ukraine sent energy costs soaring. Now, with the price of gas back above $4 ...