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Gas Tax

Joe Biden

President Joe Biden on Wednesday called on Congress to suspend federal gasoline and diesel taxes for three months — an election-year move meant to ease financial pressures that was greeted with doubts by many lawmakers.

The Democratic president also called on states to suspend their own gas taxes or provide similar relief, and he delivered a public critique of the energy industry for prioritizing profits over production. It would take action by lawmakers in Washington and in statehouses across the country to actually bring relief to consumers.

At issue is the 18.4 cents a gallon federal tax on gas and the 24.4 cents a gallon federal tax on diesel fuel. If the gas savings were fully passed along to consumers, people would save roughly 3.6% at the pump when prices are averaging about $5 a gallon nationwide.

Governor Kay Ivey released a statement Wednesday, calling President Joe Biden’s efforts a “gimmick.”

The governor says in part, “Folks across our state need relief, but I do not believe that relief will come through a fuel tax suspension at the federal or state levels.”

Gov. Ivey signed a bill in 2019 increasing Alabama’s gas tax to 28 cents a gallon. Ivey has said she is against suspending the state’s tax on gasoline because that money is funding several road projects across Alabama.

Democratic House Speaker Nancy Pelosi offered a noncommittal response to Biden’s proposal, saying she would look to see if there was support for it in Congress.