Bid to call for 3-month suspension of gas tax as prices skyrocket

Federal tax on gas and diesel helps fund the Highway Trust Fund. (Representative)


US President Joe Biden will ask Congress on Wednesday to suspend the federal gas tax for three months, as rising prices cause widespread anger among Americans just months before major midterm elections.

The White House wants to stop the tax of 18 cents per gallon (3.78 liters) until September and will appeal to U.S. states, which also tax the pump, to do the same to “provide immediate relief to U.S. consumers who have been through. Putin’s price increase, “said a senior administration official.

The official noted that prices have risen by almost $ 2 per liter since Russian President Vladimir Putin began building forces on the Ukrainian border earlier this year.

Federal taxes on gas and diesel help fund the Highway Trust Fund, which maintains roads and supports public transportation, but Biden will appeal to Congress to ensure the fund does not suffer from lost revenue.

“With our deficit already declining by a historic $ 1.6 trillion this year, the president believes we can afford to suspend the gas tax to help consumers while using other revenues to make up the Highway Trust Fund for the $ 10 billion costs, “the official said.

With increasing public anger over the rising cost of gas, several states, including New York and Connecticut, have already suspended fuel taxes, while others have postponed planned tax increases.

Biden has taken steps to ease the pain at the pump after Putin’s invasion of Ukraine on February 24 led to rising fuel prices not only in the United States but worldwide, exacerbating inflation that is already on the rise.

These measures include the release of one million barrels of oil per day from the Strategic Petroleum Reserve, negotiations on the release of an additional 60 million barrels from international partners and the expansion of access to biofuels.

But with average gas prices across the country close to $ 5 a liter, the Biden administration is eager to reduce the pain consumers feel about rising prices ahead of the November midterm elections, which could lead to Democrats losing control of Congress.

(Except for the headline, this story has not been edited by techlives staff and is being published from a syndicated stream.)

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