USA: Biden wants to suspend the federal gasoline tax – 06/22/2022 at 12:28


USA: BIDEN WANTS TO SUSPEND FEDERAL GAS TAX

by Jarrett Renshaw

WASHINGTON (Reuters) – U.S. President Joe Biden will ask Congress on Wednesday to suspend the federal tax on auto fuels for three months to curb soaring prices at the pump, a source said. a source within the administration.

The White House will also ask states to suspend their own taxes, which are often higher than the federal tax, the senior official added.

Joe Biden will also ask the oil companies invited to a meeting with his Energy Secretary this weekend to come up with proposals to increase available refining capacity.

The federal tax is 18.4 cents (17.5 euro cents) per gallon of gasoline and 24.4 cents per gallon of diesel (one gallon equals 3.78 liters).

Its suspension requires the green light from Congress, but elected officials on both sides have already expressed their reluctance to vote for it. The Speaker of the House of Representatives, Nancy Pelosi, notably judged that it would have only a limited impact on prices and that it would mainly benefit oil companies and distributors.

“A suspension of the federal gasoline tax will not solve the problem we face but it will allow families to breathe a little while we continue to work to bring prices down sustainably,” said another senior official. the Biden administration.

The suspension of the federal tax would represent a shortfall of about $10 billion, he said.

The average price of a gallon of gasoline recently exceeded five dollars for the first time, a symbolic threshold emblematic of the impact of inflation on American households less than five years from the midterm elections, which are announced. delicate for the Biden camp.

(Report Jarrett Renshaw, French version Marc Angrand)

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