July 2, 2022
Trending Tags
Biden to warn Putin of economic consequences of Ukraine invasion, says official

Biden expected to call on Wednesday for suspending the federal gas tax, source says

 – US President Joe Biden is expected on Wednesday to call for briefly suspending the 18.4-cents a gallon federal tax on gasoline, a source briefed on the plan advised Reuters on Tuesday.

Mr. Biden mentioned Monday he was contemplating whether or not to call for a pause in the tax, as the United States struggles to sort out hovering gasoline costs and inflation. A gas tax vacation faces important opposition in Congress, together with amongst many Democrats. The plan was reported earlier by Punchbowl Information.

The White Home, which mentioned Mr. Biden will ship remarks on gas costs at 2 p.m. EDT Wednesday, declined to remark.

Excessive gasoline costs pose a major political downside for Biden and congressional Democrats as they wrestle to preserve their slim management of Congress in November’s midterm elections.

Michigan Governor Gretchen Whitmer, a Democrat, on Tuesday called on Biden to help suspending the gas tax saying “getting this done will offer real, immediate relief without compromising the federal government’s ability to make infrastructure investments.”

Home Transportation and Infrastructure Committee chair Peter DeFazio, a Democrat, mentioned “suspending the federal gas tax will not provide meaningful relief at the pump for American families, but it will blow a multi-billion-dollar hole in the highway trust fund.”

Republicans are broadly opposed to the gas tax suspension. In February, Senate Republican Chief Mitch McConnell ridiculed a suspension backed by some Democrats, saying “they’ve spent an entire year waging a holy war on affordable American energy.”

Mr. Biden has pulled on quite a few levers to strive to decrease costs, together with a file launch of barrels from U.S. strategic reserves, waivers on guidelines for producing summer season gasoline, and leaning on main OPEC international locations to enhance output.

Gas costs have been surging round the world due to a mixture of rebounding demand, sanctions on oil producer Russia after its invasion of Ukraine and a squeeze on refining capability. Russia calls its actions in Ukraine a “special operation”.

On June 11, the worth of U.S. gasoline averaged greater than $5 a gallon for the first time, knowledge from AAA confirmed. It was $4.97 on Tuesday.

Adjusting for inflation, the U.S. gasoline common was nonetheless under June 2008 highs of round $5.41 a gallon, in accordance to U.S. Vitality Division figures. – Reuters

Source link