Biden Calls on Congress to Suspend Fuel Tax
As the national average for diesel fuel exceeds five dollars per gallon, President Joseph Robinette Biden Junior is calling on Congress to suspend the fuel tax for three months to help alleviate fuel prices.
Details
The federal fuel tax on diesel is about 24.4 cents per gallon. The money is used for the Highway Trust Fund to build infrastructure. If Biden’s recommendation goes through, the Highway Trust Fund will find itself with a $10 billion shortfall that will go back into the hands of truckers. Biden is also asking Congress to divert funds from other sources to make up for this $10 billion shortfall to help keep roads intact.
Chris Spear of the ATA has voiced his disdain of the plan to help alleviate fuel prices. “After months of touting the passage of the well-funded Infrastructure Investment and Jobs Act – a much-needed investment in our nation’s roads and bridges – the Biden Administration wants to cut that same highway system’s primary source of funding with a suspension of the federal fuel tax,” he said. He instead proposes that America should drill for its own oil in a bid for its energy independence. “Stop wasting hard-earned taxpayer dollars on senseless programs that drive up inflation and runaway deficits. Energy independence, trade and a balanced budget. Do that and America wins.”
Conclusion
The request to suspend the fuel tax is the latest move by the Biden Administration to fight rising fuel prices, alongside the plan to sell 180 million barrels over half a year and allowing use of gasoline that employs a 15% ethanol blend. Assuming it becomes law immediately, fuel prices would see a price cut of almost 5%. While there would be no requirement to pass all of the savings onto the driver, consumers are thirsty for a better deal on oil, so stations offering a discount will likely obtain significantly more business than those who do not.
Ultimately, fuel prices are a problem of supply and demand; with the trucking industry at record-high employment and the federal government being hesitant to drill for oil on its own land, prices will not be coming down any time soon. Be prepared for the long haul.
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