With his poll numbers flailing, President Joe Biden on Wednesday will call for Congress to suspend the federal gas and diesel taxes over the summer to provide relief for American drivers amid record-high gas prices.
If Congress acts, the 18-cent tax per gallon on gas and 24-cent tax per gallon on diesel fuel would be lifted for a three-month period that would coincide with an expected surge in demand for gas as people travel during the summer.
The White House released a fact sheet on the proposal Wednesday morning.
“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,” a senior administration official told reporters on a call before the announcement, according to The Hill.
The White House acknowledged that a gas tax suspension is only a temporary action and that in the long term, the tax is needed for the Highway Trust Fund.
“President Biden understands that a gas tax holiday alone will not, on its own, relieve the run-up in costs that we’ve seen. But the President believes that at this unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room,” the White House said.
State and federal gas taxes make up about 16.4% of the average retail price for a gallon of gasoline, according to the U. S. Energy Information Administration.
Proponents of the gas tax holiday say it’s a quick and easy way to lower prices at the pump. But Republicans and en… (Read more)