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With Independence Day less than two weeks away, US consumers have been financially battered by the highest consumer prices in four decades. The Biden administration needs to improve optics in the eyes of households as their policies fail to tame rampant inflation. That’s why President Biden will call on Congress on Wednesday afternoon to suspend federal gas and diesel taxes for the next three months.
Bloomberg said the suspension of the federal fuel tax would lift the 18-cent tax per gallon on gasoline and 24-cent tax per gallon on diesel through the summer driving months. The national average for regular gas is around $5 a gallon, and diesel nears $6. “A federal gas tax suspension alone won’t fix the problem we face, but it will provide families a little breathing room as we continue working to bring down prices for the long haul,” The Hill quoted a senior administration official who spoke with reporters Tuesday. Breaking down proposed tax savings, 18-cent savings per gallon of regular gas for 12 gallons (average fuel tank size for a US car) will save the consumer a whopping $2.16 every time they fill up. The scheme reminded us of last year when inflation was beginning to rise ahead of July 4, and the Biden administration bragged the average price of a cookout was a whole 16-cent cheaper than the prior year.
Biden’s proposal also calls on states to suspend their gas taxes or provide rebates to consumers. “[Biden] believes that states, oil companies and retailers have a responsibility in this unique moment – to do their part to ameliorate Putin’s price hike,” the official said. “He’s calling on states to suspend their gas taxes or else find other ways to deliver the same relief, such as consumer rebates or relief payments.” The move comes […]
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