US President Joe Biden tried to defend his strategy in the face of record fuel prices on Wednesday, promising a slight fiscal easing for the summer and talking about the sacrifices needed to punish Russia for its invasion of Ukraine.
“By suspending for 18 days the federal excise duty tax of 18 cents (per gallon, that is, at 3.78 liters), we will be able to reduce prices and relieve families a little,” the US president said on Wednesday from the White House. , calling on Congress to adopt this measure, the effectiveness of which has been strongly questioned from the outset.
“I know that this tax suspension will not solve the problem on its own, but will give (…) a breath” to households, he added.
The 79-year-old Democrat, whose popularity is sinking due to rising prices and especially of this fuel, something that is burning Americans, called on distributors to pass on “the last penny” of this tax suspension to consumers.
“This is not the time to make a profit,” he warned.
Joe Biden also wants states to suspend their own tax cuts, which average 30 cents per gallon, or find other household relief mechanisms.
The average price of a gallon of gasoline has reached a record level of 5 dollars in the US (4,968 dollars yesterday), from 3 dollars where it was a year ago.
The Democratic president also called on the oil industry giants, with whom he has rather bad relations, to increase refining capacity, but also to adjust their prices immediately when they fall, not just when they rise.
“If there is a joint effort by Congress, the states and the refineries, ‘it can reduce the price of the pump by a dollar a gallon, if not more,'” Biden said.
The suspension of the 18-cent federal excise tax, as well as the 24-cent diesel gallon, is expected to cut about $ 10 billion in cash and infrastructure funds, which are normally financed by that revenue. The government assures that it can cover any deficit that may arise.
The tax suspension was criticized before it was even announced by the president, even in Mr. Biden’s faction.
The strong leader of the Democrats in the House of Representatives, Nancy Pelosi, last week rejected the idea, talking about “show-biz”, a measure to be seen. The media dug up statements made in 2008 by Barack Obama, then still future president, who had publicly opposed the tax suspension, talking about a “trick”.
Several experts also expressed skepticism, as the measure does not solve the fundamental problem, high demand amid insufficient supply.
Faced with the criticism, Joe Biden dramatized the stakes yesterday, recalling that the price of fuel rose by $ 2 a gallon after Russia’s invasion of Ukraine.
Referring to Western sanctions on Russian hydrocarbons, he said: “We could turn a blind eye to the assassination of (Russian President Vladimir Putin) Putin. The price of fuel would not go up that much. (But I think that would be wrong.” .
Addressing Republican elected officials, who have repeatedly called for an end to the violence, Joe Biden said: “So you say you would rather have lower fuel prices in the US and Vladimir Putin’s iron fist in Europe? I do not believe …”
SOURCE: ΑΠΕ-ΜΠΕ
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
