Matty Burnhart, Knitted News23.06.22 07:36 24 in Sivan Tishpev
U.S. President Joe Biden yesterday (Wednesday) called for a 3-month suspension in federal tax on fuel in order to fight rising prices, but following opposition within Congress, it is very possible that this move will not pass.
“American families who pay much more for fuel deserve financial relief,” Biden said in his speech, arguing that the 18.4 cents suspension per gallon of fuel is insufficient.
“I fully understand that temporary fuel price relief is not going to solve the problem but it will allow families immediate relief, some breathing space, while we work to continue lowering prices in the long run.”
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Biden also called on the states themselves to temporarily lower local taxes on fuel. In addition, the president recommended to fuel companies to come up with ideas for improving production when they meet today with Energy Minister Jennifer Greenholm.
Fear ahead of the election
Biden and his partners are under intense pressure from the public to bring down oil prices and rising inflation, which are adversely affecting the president’s numbers in public opinion polls, all ahead of the midterm elections in November.
The president of course argues that the main reason for the rise in prices is the Russian invasion of Ukraine and that the oil companies are taking advantage of the situation for a high profit now that the corona plague is no longer in a difficult situation. The oil companies claim that Biden blackens their faces without justification.
Legislators on both sides of the barricade oppose
As mentioned, lawmakers on both sides of the U.S. political map have voiced opposition to Biden’s move. Many Democrats, including House Speaker Nancy Pelosi, argue that oil companies are the ones who will benefit from most of the vaccine.
“We will see where the consensus is on the issue regarding the presidential proposal in the House of Representatives and the Senate,” Pelosi said in an extraordinary statement in her coolness towards the White House.
Yesterday, fuel prices plummeted in anticipation of the president’s announcement, but this decline appears to have moderated.
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