Larson Questions Treasury Secretary Bessent on High Gas Prices and the Need to Suspend the Gas Tax, Calls for Action to Lower Prices Now

"People hear a lot of rhetoric, etcetera, but that doesn't pay their grocery bills, that doesn't pay their heating costs, that doesn't put fuel in their tanks, that doesn't help them get through the day-to-day grind of their lives," said Larson. "Secretary Bessent didn't come here today with a plan - he wanted a standing ovation for Trump's failed policies. He didn't get anything close - but we left today's hearing with a commitment to lower gas prices. Democrats have put forward a plan to suspend the gas tax and provide relief at the pump for families now. Now that we have support from the White House, we should get it done. When will Republican leadership call a vote?"

Read the full transcript of Rep. Larson's remarks below.

Larson: Thank you. And thank you, Secretary, for joining us here today. It's always kind of unusual when you start a hearing and are instructed of what you can say or can't say in an open and free democracy. But having said that, you mentioned in your testimony core inflation a couple of times. What's the difference between core inflation and inflation?

Bessent: It is in general, energy prices and food prices, which are much more fast moving. And I would say that energy prices will roll down when this Iran conflict ends.

Larson: So, is gasoline considered part of core inflation?

Bessent: Yes, sir.

Larson: It is. So, core inflation reflects gasoline prices?

Bessent: Core inflation reflects the underlying trend in inflation and whether that inflation has become endemic to the system, as it did during President Biden's term.

Larson: Has the war in Iran had anything to do with core inflation?

Bessent: Sir?

Larson: Does the war in Iran have anything to do with core inflation? Oh, you can't answer that either? Or are we precluded from asking that?

Bessent: Well, I'm not sure what the question is.

Larson: Let me make it as simple as I can. Does the war in Iran? Are you with me? Has the war in Iran caused rising gas prices?

Bessent: Well, again, that is the regular inflation and gas prices have gone up, which I believe will be temporary.

Larson: So, gas prices have gone up, but you believe they're temporary.

Bessent: Core inflation has dropped 0.5% since President Trump came to office.

Larson: Geez. You know, when I'm home in my district, I'm going to just tell those people, geez, you know what? You've missed this whole thing. Don't you understand core inflation? You guys are better off! I mean, these gas prices, I don't know what you people are thinking out there, for God's sake. You should be doing cartwheels in the street over the price of gas. So, what is the administration's plan to lower gas prices?

Bessent: We've taken many steps.

Larson: Are you in favor of eliminating the gas tax?

Bessent: We have moved to...

Larson: Are you in favor of eliminating the gas tax?

Bessent: We would like to work with...

Larson: Are you able to answer that or is that not answerable either?

Bessent: Well, if I'm not interrupted, I can, Congressman.

Larson: Well, I'm waiting for your answer.

Bessent: We have moved. We have asked Congress to move to eliminate the gas tax. That is done through statute.

Larson: You have moved that? So, you're in favor of eliminating the gas tax?

Bessent: We have asked for that.

Larson: So, we can join bipartisan-ly today because you're in favor of it to eliminate the gas tax.

Bessent: Again, the White House has asked for it, sir.

Larson: They have? Why isn't it before the committee for a vote?

Bessent: I don't run the agenda.

Larson: Well, it's good to hear that we're in favor of something that we can work on bipartisan-ly that will help relieve people who need it the most. Forgive me, but people in my district aren't doing cartwheels over this economy. They haven't seen the impact that you claim that they're all receiving. People hear a lot of rhetoric, etcetera, but that doesn't pay their grocery bills, that doesn't pay their heating costs, that doesn't put fuel in their tanks, that doesn't help them get through the day-to-day grind of their lives, and so, coming here and filling us with platitude and telling us how great we will should be to the Trump Administration for everything that it's done...Is this war responsible for any of this?

Bessent: Congressman, food at home is up 2.5% since President Trump took office.

Larson: Are we at war currently?

Bessent: ...which is twice that much every year under the Biden Administration.

Larson: Are we at war currently?

Bessent: The conflict has been halted.

Larson: The conflict has been halted. So, we're not at war? So, our military is not involved? We're not at war?

Bessent: Again, if you would like for me to call the Secretary of War, I can ask. I'm the Secretary of Treasury.

Larson: So as part of the administration and as part of this, we're not at war. How in God's name, if we can't answer any questions at all, and, I don't know, maybe there were special orders where we're not allowed to answer these questions, or not. We ought to make that clear. Are we at war or not? I'm asking in relation to the cost of [oil and gas going up]. That hasn't risen? Has it risen because of the war?

Bessent: It did rise because of the conflict. Yes, sir.

Larson: The conflict. So that's what we call it. Our people go into battle and lose their lives, and you call it conflict.