President Joe Biden on Wednesday called on Congress to suspend diesel taxes and federal gasoline for the next three months. The new move he took was meant to ease the financial pressures at the pump. This also reveals the political toxicity of the high price charged for gas in an election year.
3-Month Suspension Of Gas And Diesel Taxes
The president will call on states to suspend the gas taxes or offer similar relief. At the current issue, the federal gas tax is 18.4 cents a gallon, and on diesel fuel, it is 24.4 cents a gallon. If the savings on the gas taxes were fully passed, then the consumers and the common people could roughly save 3.6% right at the pump when the cost reaches an average of around $5 a gallon nationwide.
Many lawmakers and economists from various parties look into this new idea of a gas tax holiday with doubt. Whatever the two parties think and come up with, the administration is looking for the perfect way to save people from higher tax prices at the pump.
The honorable president Mr. Biden said to his team members to arrange a meeting this week with the prominent oil company CEOs to have a deep discussion to low down the rising prices. And the meeting took place on Wednesday. In the meeting, the president pointed out that the oil companies are making out excessive profits from the people. At the same time, people are trying hard to face the skyrocketing price at the pump.
Biden asked the company CEOs why couldn’t they refine more oil instead of raising the price. The president has already released oil from the strategic reserve U.S. and raised the ethanol blending last summer. After all these moves, the authority has now considered a gas tax holiday.
Energy Secretary Jennifer Granholm gave an interview on State of the Union (CNN) in which she said that the part of the gas tax challenge would, of course, fund the roads.
Janet Yellen, the Treasury Secretary on Monday, pointed out that the consumers are getting hurt by the higher gas price, so she supports the gas tax holiday.
At a joint press conference on Monday, Ms. Yellen shared his thoughts that the rise in price is badly affecting American households, and he thinks it is not perfect.
The all-new gas tax holiday would surely need to face an uphill climb for the Congressional approval. Though Democrats hold a minor strength, Nancy Pelosi, the Democratic House Speaker, and Mitch McConnell, Senate Minority Leader, have already expressed their district earlier for such an action.
The oil refiners show their low ability to come up with additional diesel and gas, which is limited, showing the cost should remain high unless the demand starts to abate.
The American Fuel & Petrochemical Manufacturers and American Petroleum Institute together sent a joined letter to the President on Wednesday highlighting the fact that refineries are currently operating at their maximum, and half of the capacity taken offline was because of the facilities turning to renewable fuel production.