What a Federal Gas Tax Holiday Could Mean for Prices at the Pump

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What a Federal Gas Tax Holiday Could Mean for Prices at the Pump
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As Biden Weighs a Federal Gas Tax Holiday, Here's What That Could Mean for Prices at the Pump

"I hope I have a decision based on data I'm looking for by the end of the week," Biden said.

A report from the Penn Wharton Budget Model at the University of Pennsylvania released in March found thatThe savings per person might be only around $50 if it were implemented in March through the end of the year, Kent Smetters, a professor at the University of Pennsylvania's Wharton School told CNBC at the time.

The problem is that most of the savings from those changes — whether they happen at the federal or state level — will not be passed on to the consumer, Smetters said. Federal taxes make up a small portion of what consumers spend on gas, according to AAA spokesperson Andrew Gross.

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