Sunday, November 17

Democrats call for temporary suspension of federal gas tax to offset hikes

El precio del galón de gasolina regular registra una tendencia al alza.
The price of a gallon of regular gasoline shows an upward trend.

Photo: FREDERIC J. BROWN / AFP / Getty Images

Luis Diaz

For: Luis Diaz Updated 10 Feb 2022, 14: 12 PM EST

Luis Diaz

In order to help American families so that their economy is not affected by the constant rise in fuel prices, two Democratic senators launched the proposal to temporarily suspend the federal income tax gasoline.

Mark Kelly and Maggie Hassan are the legislators promoting the measure, which, if approved, would apply for the rest of the year, valid until until January 1 of 2023. The tax represents 18.4 cents per gallon from 1993. The proposal has already been signed by four other Democrats and is expected to be echoed throughout the caucus.

“People are feeling real pressure on everyday goods, and we must do more to help address rising costs, particularly the price of gasoline,” Hassan said in a statement.

The American Automobile Association (AAA) , announced that, currently, the cost of a gallon of gasoline is almost $1 dollar more than at the same time last year, showing that the increases have been constant.

According to the AAA, a gallon of gasoline, on average, costs $3.46 dollars throughout the country as of today, but on the same date of 2021 it represented $2.46 dollars.

Ok Under current law, the federal income tax Gasoline is used to pay for the Highway Trust Fund, which covers expenses such as road construction and public transportation.

To cover the loss of gas tax revenue, the Treasury Department would take money out of the general fund and transfer it to the Highway Trust Fund to keep it solvent if the bill passes.

In addition, the Democrats’ bill also directs the Treasury Department to oversee the program to ensure that oil and gas companies transfer savings to consumers.

According to AP, it is not the first time that an attempt has been made to suspend the gasoline tax, congressmen have considered the idea of ​​suspending it in contexts such as the Covid pandemic, but they did not generate enough legislative support for the bill to be approved. reality.

So far, it was not reported when the senators’ proposal would be discussed and its eventual vote in the Upper House of Congress, but it is hoped that some Republican legislators can join in order to guarantee its approval.

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