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President Joe Biden will ask Congress on Wednesday to suspend for three months federal taxes on gasoline and diesel, in an attempt to lower the high price of fuel, which earlier this month reached an all-time record.
In a press release, the White House informed that the President will ask Congress (controlled by the Democrats) today to temporarily suspend the 18 cents per gallon tax on gasoline (3.78 liters) and the 24 cents per gallon tax on diesel.
In both cases, these are federal government taxes, so state charges would still apply (California, for example, is famous for having one of the highest fuel taxes in the United States).
The White House also urged states to do the same and either suspend their own taxes or help consumers in some way or another.
The tax suspension, which must be approved by Congress to be effective, would be in effect for the months of July, August, and September, all of which are busy months for highway traffic as they coincide with summer vacations for children and most adults.
Despite Biden’s support, it is not clear that the measure will gain sufficient support in Congress.
The President will also ask Congress to ensure that the suspension of the taxes will have no effect on funding for highway construction, operation and repair, and public transportation, even though these are normally funded with money from these taxes.
The price of a gallon of gasoline in the United States reached 5 dollars on June 11, a record that occurred when the country is experiencing the highest inflation in 40 years.
According to the AAA federation of automobile associations, the average price of a gallon of fuel at the country’s gas stations that day was 5.004 dollars, something that had never happened before.
AAA analysts, moreover, said they expect gasoline prices to continue to rise during the summer months.
A year ago, in June 2021, the average price of a gallon of gasoline stood at $3.07, practically two dollars below the current price.
In 20 of the country’s 50 states, prices are above $5 per gallon, especially on the west coast of the country.
