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Biden will call for suspension for 3 months of gas tax, although officials recognize it “only won’t fix in problem’

Biden will also call on states take steps withdrawal of own taxes on gas and diesel. And he will tell refiners to build their capacity forward. of their scheduled meeting this week with administration officials.

In combination, senior administration officials said that steps Biden will call for could reduce in price per gallon of gas for 1 dollar. However, this number depends on number of steps fully out of presidential control — last but not least of which convinces a skeptical Congress to approve his plan.

steps amount to Biden latest to attempt show he takes the initiative in lower fuel prices as Americans rise more disappointed financial cargo. White House officials considered imposing a gas tax holiday for months, but still off until now in part because of concerns about how it can be obtained in Congress.

Republicans are widely opposed to abolishing the gas tax. Even some Democrats, including Speaker of the House Nancy Pelosi, have been cold-blooded. on idea. As well as in in past, senior Democrats, including President Barack Obama. on in campaign drag in 2008 — introduced a tax on gasoline holiday as a “chip”.

For now facing growing anger and start of summer car season, Biden determined that even small steps bordering on symbolic worth take.

“Under the conditions in which we in today it’s not a trick, it’s a little of respite for American people as we approach the summer driving season,” said Amos Hochstein, senior adviser for energy security at the State Department, in Interview on CNN’s “New Day” on Wednesday morning.

current federal tax on gas is about 18 cents per gallon, while the federal tax on diesel costs 24 cents a gallon. Even if the savings from eliminating these taxes were passed on directly to consumers — what is not guaranteed — savings for one fill-up maybe just a few dollars.

Biden is expected back federal gas tax holiday how he ramps up criticism of oil industry amid rising prices Biden is expected back federal gas tax holiday how he ramps up criticism of oil industry amid rising prices
Even some Democrats have previously questioned on gas tax holidaynoting that the tax is an important source of financing for Road construction. Officials said Biden call for using other sources of income to make up for deficit, and he worked to mitigate some of these worries on Tuesday.

“Look, it’s going to have some impact, but it won’t have an impact. on major road construction and overhaul,” he told reporters.

Economists are skeptical

Some economists also say that the savings passed on to consumers can be minimal because retailers just raise the base price of gas to make up differences.

“Whatever you think of dignity of gas tax holiday in February, now that’s the worst idea.” — Jason Fuhrman senior economic official in Obama administration writes on Twitter. “The refinery even more is now limited, so supply is almost completely inelastic. Most of 18.4 cent cut to be pocketed by industry — with maybe a few cents gone on consumers.”

Senior administration officials acknowledged the criticism but said Biden would pressure companies to pass on savings.

“The President calls and demands that industry, companies and retailers, pass what on gas station consumer,” Hochstein said, without going into detail about what the president could do to ensure consumers see everything of saving.

“We would study this carefully, and we would call on the industry is doing just that. pass it on,” he said.

Another official talking ahead of in the announcement acknowledged that simply suspending the tax “won’t help solve whole problem.”

“This is what can be done to real step relieve some of this pain in the pump and we see it as a part of luxury of politicians who designed provide this relief, including policies that focus on food side” official said.

But even there, quick action seems difficult. Refining capacity, which was cut during the Covid-19 pandemic, will take months to recover. back online refineries are now almost 90% loaded. of their capacity.

“We’re definitely getting close to it. in constructive, efficient, pragmatic ways. I again think american people would want their leaders do it”, second senior administration official said, noting the meeting on Thursday with seven top executives and Energy Secretary Jennifer Granholm.

Biden looks for scapegoats

The President addressed up in heat on oil and gas companies in recent weeks when gas prices jumped up, with in national average rise above $5 per gallon in one dot last a week.

Biden has made Russian war in Ukraine is his main scapegoat for rising gas prices, but also called out oil and gas companies, saying they are not doing enough to down expenses and charge them of profit off war. He repeated several of these arguments on Tuesday, saying what the country needs”more oil refining capacities.

“The idea that they don’t have oil to drill and deliver up just no true,” he said.

In response to the president’s criticism, the oil industry has basically said that the Biden administration is to blame for prices being so high because of what they perceive as limitations on domestic oil and gas production.

This was stated by Chevron CEO Mike Worth. in letter on Tuesday when Biden should stop criticizing the oil and gas industry and urged for turn in approach” from the White House.

“Your administration has been largely critical of, and in times vilify our industry,” wrote Worth. in open letter to Biden. “These actions do not contribute to the satisfaction challenges we face and not that American people deserve.”

Biden responded later in day: “He’s a little sensitive,” adding, “I don’t know they hurt their feelings so quickly.”

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Tyler Hromadka
Tyler Hromadka
Tyler is working as the Author at World Weekly News. He has a love for writing and have been writing for a few years now as a free-lancer.

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