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US President Joe Biden has asked Congress to approve a three-month suspension of the federal gas tax to help combat record prices at the pump and provide relief to consumers.
A temporary relief. US President Joe Biden has urged states to temporarily suspend taxes on fuel and vowed to challenge major oil companies to come up with ideas on how to bring back idled refining capacity.
“We can lower the price of gas and give families a little bit of relief,” Biden said in a White House speech.
Biden and his advisers have been trying for months to find a solution to rising gasoline prices, as they have lowered the president’s approval ratings and hinder Democrats’ intentions to retain power in Congress in the November elections. .
Suspension of the federal gas tax of 18.4 cents per gallon and the diesel tax of 24.4 cents would require congressional approval, so Biden’s proposal makes symbolic sense.
House Speaker Nancy Pelosi fears the move will have limited effect on prices if oil companies and retailers pocket much of the savings.
Biden: ‘I’m doing my part. I want Congress and the states to do their part.’
The move would cost the Highway Trust Fund about $10 billion in foregone revenue, but that could be offset by other areas of a budget where revenues are growing and deficits shrink as the United States emerges from the pandemic.
Biden’s previous efforts to lower gasoline prices, such as the release of oil from the US strategic reserve and increased ethanol blending this summer, did little to cut prices at the pump.
“I’m doing my part. I want Congress, states and industry to do their part too,” the president said.
Critics of the measure warn that it could represent a decrease in spending on roads, bridges and other infrastructure that are the hallmarks of the Biden presidency. But the White House says the money could be transferred from other government accounts and that infrastructure remains a priority for the president.
With AP and Reuters
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