Joe Biden could temporarily scrap fuel taxes

As the gallon topped $5 for the first time just recently, Joe Biden, pressed by his electorate and overwhelmed Americans, could announce the abolition of federal fuel taxes.

The American media are already calling this “tax holidays”. Understand by this that it could well be that the already very light taxation on fuels in the United States will be reduced to nothing if Joe Biden confirms the measure by the end of the week. The “taxes on vacation”, therefore, but not definitively. However, it is time to act in the face of people who are beginning to despair of paying more than five dollars for their gallon (historical record, reached during the month of June). This is equivalent to €1.25 per liter of unleaded fuel. Obviously, these rates would please any European who pays more than two euros for his fuel, but in the United States, vehicles are often much more greedy, and the distances traveled by motorists much greater. Clearly, Americans are even more violently affected by fluctuations at the pump.

The end of taxes for petrol and diesel?

Joe Biden has obviously recovered well from his unfortunate fall on a bicycle since he is already working on the subject of burning fuel. The US president confirmed that he “hopes” to have a decision “based on expected data” by the end of the week. Objective, the elimination of the 18.3 cents of dollars of taxes on gasoline and 24.3 cents on diesel. VSUnlike France, fuel taxes are very low in the United States, so that the State can afford to temporarily waive its taxes when the French State has always refused this important windfall. But just like in Germany, how long will this exceptional discount allow fuels to drop to more reasonable levels, if the price of crude continues to rise?

Published on 06/22/2022 Updated 06/22/2022

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