The Economics and Politics Behind the Proposed Gas Tax Credit

With average national gas prices hovering around $5, the Biden administration is feeling the pressure to take more actions that will lower prices and take some heat off of Democrats running in the midterms. President Biden is currently deciding whether to implement a federal gas tax holiday, which could decrease gas prices by roughly 18 cents, but could also be a bigger help to gas and oil companies than to consumers. We take a look at the economics and politics of gas prices. We speak with Joel Payne, former aide to Hillary Clinton's 2016 campaign and CBS News political contributor, and Denvil Duncan, Associate Professor of Economics at Paul H. O’Neill School of Public and Environmental Affairs at Indiana University.