Monday, August 8, 2022

Considering suspending Biden gas tax: Decision may come this week

President Joe Biden assured this Monday that he is analyzing the possibility Temporarily abolish the federal gas tax this week With the intention of bringing down record fuel prices.

Before a group of reporters covering the White House, the president assured that he was considering a pause, a measure that some legislators in his party have used as a way to lower fuel prices at service stations. has been promoted.

“Well, I hope I can make a decision based on the data that I’m seeing … by the end of the week,” Biden said Monday while vacationing in Rehoboth Beach, Delaware.

For every gallon of gasoline, the tax adds up 18.3 cents, This means a savings of about $4 per tank filling, depending on the capacity of the car. If you note that we are in the summer holiday season – when many people travel – the savings can be realized even more.

A gallon of regular gas this week was less than $5, which is still a lot compared to a year ago, but the weekly national average has fallen for the first time in nine weeks.

Treasury Secretary Janet Yellen told ABC on Sunday that the idea of ​​lowering the gas tax is “definitely worth considering.”

He added that President Joe Biden “wanted to do everything possible for this”. help consumers,

Energy Secretary Jennifer Granholm, for her part, told Nation World News that “part of the challenge with the gas tax is, of course, that it finances highways.”

Secretaries Granholm and Yellen both reiterated Biden’s stance that the recession was “not inevitable”, and the Treasury secretary said labor markets and consumer spending remained strong. Meester also said that he did not predict a recession, despite the slowing growth rate.

The comments come as the Biden administration struggles to address record petrol prices and inflation, which is now at its highest level in 40 years.

President Biden called the oil majors last week To produce more gasoline and diesel, Claiming that their profits have tripled in the context of the Russian invasion of Ukraine while Americans pay record prices at gas stations.

Long way to control inflation

Headline inflation began to rise last year as the US economy began to recover from the coronavirus pandemic, but has accelerated in recent months with rising energy and food prices due to the Russian invasion of Ukraine.

The chairman of the Cleveland Federal Reserve, Loretta Meester, assured that it would take two years for inflation to reach the central bank’s 2% target, gradually “falling off”.

Biden has recently said that he is considering removing some of these tariff tax for hundreds of billions of dollars of Chinese goods by Donald Trump in 2018 and 2019 against the backdrop of a bitter trade war between the world’s two largest economies.

After reaching 16.6% in 2020, the country’s national savings rate has fallen from pre-pandemic levels to nearly 6%, the highest on record since 1948, and 12.7% in 2021.

“I expect the economy to slow down,” Yellen said. “It’s growing at a very high rate and the economy has recovered, and we’ve achieved full recruitment. We look forward to the transition to steady, steady growth, but I don’t think a recession is inevitable.”

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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