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News for August 8, 2022

Biden Calls for 3-Month Gas, Diesel Taxes Suspension

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Earlier this week, President Joe Biden called on Congress to suspend the federal diesel and gasoline taxes for three months to alleviate financial pressures.

According to a report, the president also urged states to eliminate their gas taxes or provide similar relief.

“It doesn’t reduce all the pain, but it will be a big help,” Biden said.

“I’m doing my part. I want Congress, states, and industry to do their part as well.”

The 18.4 cents-per-gallon federal gas tax and the 24.4 cents-per-gallon federal tax on diesel fuel are at issue. If the gas savings are passed along to customers, they will save approximately 3.6% at the pump when prices average about $5 a gallon nationwide.

Democratic House Speaker Nancy Pelosi offered a noncommittal response to Biden’s plan, saying she would look to see if there was support for it in Congress.

“We will see where the consensus lies on a path forward for the president’s proposal in the House and the Senate,” Pelosi said.

In his speech, Biden linked the soaring energy costs to Russia’s invasion of Ukraine.

Mark Zandi, a chief economist at Moody’s Analytics, estimated that the bulk of the 8.6% of inflation in the last year in the U.S. comes from higher commodity prices caused by Russia’s invasion and continued disruptions from the coronavirus.

“In the immediate near term, it is critical to stem the increase in oil prices,” Zandi said last week, suggesting that Saudi Arabia, the United Arab Emirates, and a nuclear deal with Iran could help to boost supplies and lower prices. Republican lawmakers have tried to shift more blame to Biden, saying he created a hostile environment for domestic oil producers, causing their output to stay below pre-pandemic levels.

Administration officials stated that the $10 billion from the gas tax holiday will be covered and that the Highway Trust Fund will be kept whole even though gas taxes make up a significant revenue to fund.

Biden has also urged energy companies to take on lower profit margins to boost the production of oil and refining capacity for gasoline.

This story originally appeared on AP News.

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Modern Campground

Modern Campground

Modern Campground is the most innovative news source in the Outdoor Hospitality industry. We provide global news coverage for RV Park and Campground owners, operators, managers, and their team members.
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Hi, you might find this article from Modern Campground interesting: Biden Calls for 3-Month Gas, Diesel Taxes Suspension! This is the link: https://moderncampground.com/usa/biden-calls-for-3-month-gas-diesel-taxes-suspension/