If Republicans win midterm election, watch for gas tax exemption, child tax credit and crime measures, expert says

If Republicans regain control of Congress in November’s midterm elections, what might a divided Washington end up offering?

GOP and Democrat politicians may “feel like they have to do something” about inflation, so “you might see a decision to suspend or reduce the federal gas tax,” Yuval Levin said. , a conservative-leaning expert from the American Enterprise Institute.

The White House has previously said that an RB00 gasoline,
the tax exemption is an option under consideration as the Biden administration seeks to relieve Americans of high prices, although analysts have warned that monkeying with this tax would take away funds that were supposed to be needed for major infrastructure PAVE,

The annual inflation rate hit 8.6% in May, beating forecasts and marking a new 40-year high. High gas and food prices as well as rising rents helped push up the latest reading of the Consumer Price Index, or CPI.

“There may be room for compromise on family policy,” Levin also said, with his remarks coming Monday at a Bipartisan Policy Center event titled “Sneak Peek at a Potential Republican Congress.”

GOP Sen. Mitt Romney’s child benefit proposal “has gained support from Democrats as well as Republicans, and I think this might be an area where you could consider child tax credit reform or transformation. in the sense that he proposed”.

In December, the Biden White House expressed openness to working with Romney on child tax credit payments, as the Utah lawmaker called for a bipartisan approach on the issue. Romney proposed a program similar to the monthly CTC payments that ended last year due to opposition from Democratic Sen. Joe Manchin of West Virginia, who also criticized other parts of the government’s Build Back Better plan. President Joe Biden.

Levin noted that the bipartisan agreement on new gun safety measures that was reached over the weekend involves empowering local and state authorities, and this type of approach could gain traction after the midterm elections.

“On crime, we can see action, because crime is an area where it is again possible to operate by empowering local authorities and giving them options, and there may be some room for compromise there,” said Levin, whose title at AEI is director of social, cultural, and constitutional studies and holder of the Beth and Ravenel Curry Chair in Public Policy.

“And in fact, President Biden has real experience on that front as a lawmaker himself in promoting ideas that won a lot of Republican support in the 1990s.”

Admittedly, Levin said it’s “difficult” to predict what a divided Washington might achieve — and he sees a high likelihood of little action next year as both parties begin to focus on the 2024 presidential election.

“You’re also going to see a lot of posturing and a lot of messaging bills where the Republicans are just trying to put the Democrats in a tight spot going into 2024. It’s hard to avoid thinking that a lot of that is what a Republican Congress would end up doing. do,” he said.

Republicans are widely expected to regain control of the U.S. House of Representatives in the midterm elections, and the GOP also has a good chance of retaking the Senate 50-50.

See: Republicans can win not just the House but also the Senate in the midterm elections – here are the 2022 Senate races to watch

And read: Biden talks about his efforts to rein in high prices, as analysts see a ‘tough’ midterm election for him unless inflation comes down

SPX US Stocks,

ended sharply lower on Monday as financial markets continued to tumble after a surprise spike in inflation days ahead of a Federal Reserve interest rate decision.

This report was first published on June 13, 2022.

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Post expires at 2:00pm on Friday June 24th, 2022