President Biden calls for 3-month federal gas tax vacation

WASHINGTON – President Biden on Wednesday will call on Congress to suspend the federal gas tax for three months and ask states to suspend their own gas taxes or provide appropriate relief to consumers, according to the White House.

The federal government charges a fee of 18.4 cents per tonne. gallons of gasoline and a tax of 24.4 cents per gallon. gallon diesel. Suspending the tax for three months – until the end of September, as Biden will call for – will cost about $ 10 billion, according to the White House.

Asked if Biden believes Congress can somehow mandate oil companies to pass on these savings fully to consumers, a senior official did not say directly, but noted that there is “some evidence that state tax suspensions in particular are being adopted. . to consumers. “

The official said in a call Tuesday night with reporters, “the president absolutely urges businesses to ensure that these savings are passed on to consumers.”

The administration is also putting public pressure on oil companies to help Americans in a time of economic need.

“Companies are obviously dependent on their shareholders, but they really need to be respected and aware of customers and their neighbors and their fellow citizens, just as this administration does,” another senior administration official told reporters. “And we hope that is the spirit that CEOs of these companies will take.”

The US Secretary of Energy Jennifer Granholm is scheduled to meet with leaders of oil refining on Thursday.

On Wednesday, Biden will also urge state and local governments to provide “relief” to Americans by suspending their state gas taxes or providing other means, such as postponing planned tax and fee increases or even consumer discounts or relief, according to the White House. An official said Biden wants states to “match” what the federal government would do in the short term.

State gas taxes average about 31 cents per. gallons of gasoline, according to the U.S. Energy Information Administration.

Copyright © 2022 ABC News Internet Ventures.

Leave a Comment