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President Biden has called for a three-month gas tax holiday – how effective that can be

PRESIDENT Joe Biden has called for a three-month gas tax holiday until the end of September.

Gas is now up nearly $2 a gallon since Russian leader Vladimir Putin began his invasion of Ukraine.

Biden is asking Congress to enact a federal gas tax exemption

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Biden is asking Congress to enact a federal gas tax exemptionCredit: EPA

Biden’s gas tax holiday would suspend the federal government’s 18-cent per gallon gasoline tax and a 24-cent per gallon diesel tax.

These taxes fund roads and public transport infrastructure.

At the same time, Biden is encouraging state and local governments to explore what gas tax breaks they can apply — but some states have already started doing so.

Maryland paused its 36.1-cent-a-gallon tax from mid-March to mid-April, resulting in drivers absorbing 72% of the vacation’s tax savings, reports Penn Wharton Budget Model.

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Maryland locals enjoyed a 26 cent per gallon rebate during their month-long gas tax freeze.

Georgia trailed slightly behind Maryland, with between 58% and 65% of drivers achieving savings equivalent to between 16.8 cents per gallon and 18.8 cents per gallon.

Georgia on Wednesday offered the lowest average gas price in the country of $4.19 a gallon, CBS reports.

New York’s gas tax is scheduled to begin this month and end in 2022, while Florida’s is scheduled to begin in October.

Biden acknowledged his proposed tax is not a magic wand that will relieve sky-high gas costs, White House reports.

The President views the gas tax exemption as a Congress doing what it can to help Americans who are under severe financial pressure.

In recent months, Biden has shown he is issuing a historic release from the Strategic Petroleum Reserve, encouraging oil companies and suppliers to increase production to fetch lower prices, the White House reports.

Biden's call for a federal gas tax holiday aims to give Americans more financial flexibility

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Biden’s call for a federal gas tax holiday aims to give Americans more financial flexibilityPhoto credit: Getty Images – Getty

https://www.the-sun.com/motors/5618828/president-biden-gas-tax-holiday/ President Biden has called for a three-month gas tax holiday – how effective that can be

Chris Barrese

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