Joe Biden will ask Congress on Wednesday to pause the federal gas tax until September 2022 as fuel prices soar across the country. Biden is requesting Congress to institute a three-month federal gas tax holiday, however, he wants to not strip money from the Highway Trust Fund that funds mass transit and highways.
Fox Business reports:
The federal government currently charges 18 cents in taxes per gallon of gasoline and 24 cents per gallon of diesel, the official said.
Biden will also call on states, oil companies and retailers to pause gas taxes. The Penn Wharton Budget Model published estimates Wednesday revealing that gas tax holidays in Georgia, Maryland and Connecticut saved consumers money at the pump. Most of the savings in these areas went to consumers instead of service stations and others in the energy sector.
The cost of gas began to soar last fall and continued to rise following Russia’s invasion of Ukraine in late February, although the administration is framing the increase in gas prices as the “Putin price hike.”
“[Biden] believes that states, oil companies and retailers have a responsibility in this unique moment – to do their part to ameliorate Putin’s price hike,” [a Biden administration] official said. “He’s calling on states to suspend their gas taxes or else find other ways to deliver the same relief, such as consumer rebates or relief payments.”