A federal gas tax holiday could also spur a number of states to relax their taxes. Biden is expected to make the announcement Wednesday afternoon.
President Joe Biden will urge Congress to suspend the federal gas tax to provide some relief to the high prices at filling stations.The federal gas tax is 18.4 cents per gallon for regular gas and 24.4 cents a gallon on diesel. The money is used to pay for road projects, often on interstates.
The White House estimates that eliminating the gas tax would cause revenue for the Highway Trust Fund to drop by $10 billion. The Biden administration said due to a $1.6 trillion drop in the deficit, the government can afford to suspend the gas tax while using other revenues to make the Highway Trust Fund whole.
A gas tax holiday could also spur a number of states to relax their taxes. On average, states charge a tax of 31 cents a gallon on regular gas and 32 cents a gallon on diesel. While several states have already suspended their gas taxes, Biden will call on the rest of the U.S. to suspend their respective gas taxes, White House officials said.
While AAA reported that gas prices dropped below $5 per gallon on Saturday, the current rate of $4.95 a gallon remains $1.89 more than a year ago.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
President Biden to Propose 3-Month Suspension of Federal Gas TaxWhen the tax is just $0.18 per gallon, how much will consumers really notice? And what's to stop oil companies from raising prices again?
Read more »
President Biden to call for 3-month suspension of gas and diesel taxesAt issue is the 18.4 cents-a-gallon federal tax on gas & the 24.4 cents-a-gallon federal tax on diesel fuel. If the gas savings were fully passed along to consumers, people would save roughly 3.6% at the pump. U.S. gas prices now average about $5 a gallon.
Read more »
President Biden calls for 3-month federal gas tax holidayJUST IN: President Biden will call on Congress to suspend the federal gas tax for three months and ask states to suspend their own gas taxes or provide commensurate relief to consumers.
Read more »
Biden calls Chevron CEO ‘mildly sensitive’ after oil exec asks president to change approach to industryPresident Biden on Tuesday said Chevon CEO Mike Wirth was being 'mildly sensitive' when asked to respond to the oil exec's plea to take a different approach.
Read more »
President Biden considers gas tax holidayWhile AAA reported that gas prices dropped below $5 per gallon on Saturday, the current rate of $4.98 a gallon remains $1.91 more than a year ago.
Read more »
Decision on U.S. gas tax holiday may come this week, President Biden saysBiden said members of his team were to meet this week with CEOs of the major oil companies to discuss rising oil prices.
Read more »