Gas Tax Holiday

It would require action on the part of Congress to suspend the federal gas tax in order to bring about an 18.4-cent decrease in the cost per gallon.

In light of the fact that high gas prices are having a significant impact on holiday travelers and shoppers in the United States, Vice President Joe Biden stated on Monday that he is considering supporting a one-time exemption from the federal gas tax.
Biden told reporters in Rehoboth Beach, Delaware, where the first couple is spending the Juneteenth holiday weekend, that he is “Yes, I’m considering it, I hope to have a decision based on the data I’m looking for by the end of the week.”

The cost of a gallon of gas could be reduced by 18.4 cents if the federal gas tax was suspended, but this would need action from Congress, which is not likely given how little traction the notion has gained.

The state taxes on gasoline, which range from less than a penny in Alaska to a national high of 53.9 cents per gallon in California, would not be impacted in any way by this proposal.

Highways receive around 85 percent of the funding from federal gas taxes, while mass transit receives the remaining 15 percent. These funds are used to support the nation’s transportation infrastructure. If the tax on gasoline were temporarily suspended, it would make driving less expensive for motorists and might even make things cheaper to buy as a result of the reduction in the cost of transportation. However, this also means that there will be less money available to spend on highways.

According to AAA, the national average price of a gallon of gas is currently $4.98. This marks the first time in the previous week that prices have fallen below $5 per gallon. Despite the fact that gas prices are determined on a global scale – as a result of supply and demand, in addition to commodity futures markets – the administration of President Joe Biden is under a lot of pressure to take action to reduce the cost of living for Americans, who are having to pay not only higher prices for gas but also higher prices for other goods.

Even if President Biden has given the order to release oil from the Strategic Petroleum Reserve, this is only a short-term solution to a problem that will continue to exist for a longer period of time.

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Biden has placed some of the responsibility for the rise in prices on Russia’s invasion of Ukraine and the epidemic; however, he also blames oil business executives for contributing to the problem. According to the president, the price of a gallon of gas is far more than it was back when the price of a barrel of oil was comparable to what it is right now. In addition, he has stated on multiple occasions that oil firms are currently sitting on more than 9,000 unused oil drilling permits that were issued by the federal government.

The President of the United States stated that representatives of his administration will meet this week with executives from oil companies to discuss the problem; however, the President himself will not be present at the talks.

A tax holiday on gasoline was referred to by Energy Secretary Jennifer Granholm on Sunday as “one of the instruments” available to the government for lowering costs.

Granholm stated  that “It’s certainly one of the things the president is evaluating.” “I know this is what’s been happening in many states as well. Honestly, the whole array of tools is still being pressed. He’s used the biggest tool that he has, but he’s obviously very concerned about this continued upward pressure on prices”

Biden also mentioned that he was examining the possibility of providing Americans with petrol rebate cards.

According to what the president had to say, “That’s part of what we’re considering, that’s part of the whole operation”

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