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Thursday 23 June 2022
Biden calls for 3-month suspension of gas and diesel taxes

From Front have expressed reserva- VID-19 relief bill. But there problem is a shortage of oil fall profits." House Majority
tions. Even many econo- is no guarantee that states and refineries that produce Leader Steny Hoyer, D-Md.,
By JOSH BOAK mists view the idea of a gas will tap into their budgets gas, a challenge a tax holi- said he would look at the
Associated Press tax holiday with skepticism. to suspend their taxes on day cannot necessarily fix. proposal because Biden
WASHINGTON (AP) — Presi- Democratic House Speak- gas or to deliver rebates to Mark Zandi, chief econo- has proposed it.
dent Joe Biden on Wednes- er Nancy Pelosi offered a consumers, as Biden is re- mist at Moody's Analytics, "What I'm not sure is that it
day called on Congress to noncommittal response questing. estimated that the major- in fact will have the intend-
suspend federal gasoline to Biden's proposal, say- Barack Obama, during ity of the 8.6% inflation seen ed effect in terms of the
and diesel taxes for three ing she would look to see the 2008 presidential cam- over the past 12 months in retail price, whether in fact
months — an election-year if there was support for it in paign, called the idea of a the U.S. comes from higher we will save the consumer
move meant to ease fi- Congress. gas tax holiday a "gimmick" commodity prices due to money," Hoyer said. "Do I
nancial pressures that was "We will see where the that allowed politicians to Russia's invasion and con- think we have the votes?
greeted with doubts by consensus lies on a path "say that they did some- tinued disruptions from the We haven't counted, so we
many lawmakers. forward for the president's thing." He also warned that coronavirus. don't know yet."
The Democratic president proposal in the House and oil companies could offset "In the immediate near Administration officials said
also called on states to sus- the Senate," Pelosi said. the tax relief by increasing term, it is critical to stem the the $10 billion cost of the
pend their own gas taxes In his speech, Biden tied their prices. increase in oil prices," Zandi gas tax holiday would be
or provide similar relief, higher energy prices to The administration is saying said last week, suggesting paid for and the Highway
and he delivered a public Russia's invasion of Ukraine that gas tax suspensions at that Saudi Arabia, the Unit- Trust Fund kept whole, even
critique of the energy in- and said, "defending free- the federal and state lev- ed Arab Emirates and a nu- though the gas taxes make
dustry for prioritizing profits dom, defending democ- els as well as energy com- clear deal with Iran could up a substantial source of
over production. It would racy was not going to go panies pouring their profits help to boost supplies and revenue for the fund. The
take action by lawmakers without cost for the Ameri- into production and refin- lower prices. Republican officials did not specify any
in Washington and in state- can people and the rest of ing capacity could cut gas lawmakers have tried to new revenue sources.
houses across the country the free world." The presi- prices by $1 a gallon. shift more blame to Biden, The president has also
to actually bring relief to dent noted that lawmakers High gas prices pose a fun- saying he created a hostile called on energy compa-
consumers. backed sanctions against damental threat to Biden's environment for domestic nies to accept lower profit
"It doesn't reduce all the Russia and aiding Ukraine electoral and policy am- oil producers, causing their margins to increase oil pro-
pain but it will be a big despite the risks of inflation bitions. They've caused output to stay below pre- duction and refining ca-
help," Biden said, using the from resulting energy and confidence in the econ- pandemic levels. pacity for gasoline.
bully pulpit when his ad- food shortages. omy to slump to lows that Senate Republican leader This has increased tensions
ministration believes it has Democrats, Republicans bode poorly for defending Mitch McConnell mocked with oil producers: Biden
run out of direct levers to and independents in Con- Democratic control of the the gas tax holiday as has judged the companies
address soaring gas prices. gress chose to support House and the Senate in an "ineffective stunt" in a to be making "more money
"I'm doing my part. I want Ukraine, "knowing full well November. Wednesday floor speech. than God." That kicked off
Congress, states and indus- the cost," he said. Biden's past efforts to cut "This ineffective adminis- a chain of events in which
try to do their part as well." "So for all those Republicans gas prices — including tration's big new idea is a the head of Chevron, Mi-
At issue is the 18.4 cents-a- in Congress criticizing me the release of oil from the silly proposal that senior chael Wirth, sent a letter
gallon federal tax on gas today for high gas prices in U.S. strategic reserve and members of their own party to the White House saying
and the 24.4 cents-a-gallon America: Are you now say- greater ethanol blending have already shot down that the administration "has
federal tax on diesel fuel. If ing you were wrong to sup- this summer — have not well in advance," he said. largely sought to criticize,
the gas savings were fully port Ukraine?" Biden said. delivered savings at the Rep. Peter DeFazio, the and at times vilify, our in-
passed along to consum- "Are you saying that we pump, a risk that carries Democratic chairman of dustry."
ers, people would save would rather have lower over to the idea of a gas the House Transportation Asked about the letter,
roughly 3.6% at the pump gas prices in America than tax holiday. and Infrastructure Com- Biden said of Wirth: "He's
when prices are averaging (Russian President Vladimir) The president can do re- mittee, said he would not mildly sensitive. I didn't
about $5 a gallon nation- Putin's iron fist in Europe? I markably little to fix prices support suspending the gas know they'd get their feel-
wide. don't believe that. " that are set by global mar- tax. "I'm going to be work- ings hurt that quickly."
Biden's push faces uphill The president said "states kets, profit-driven compa- ing against it. I have the Energy companies are
odds in Congress, which are now in a strong posi- nies, consumer demand largest committee in Con- scheduled to meet Thurs-
must act in order to sus- tion to be able to afford and aftershocks from Rus- gress, so we'll see." day with Energy Secre-
pend the tax, and where to take some of these ac- sia's invasion of Ukraine DeFazio said a better tary Jennifer Granholm to
many lawmakers, includ- tions," thanks to federal and the embargoes that course would be to tax discuss ways to increase
ing some in his own party, support from the 2021 CO- followed. The underlying oil companies on "wind- supply.q

British Open allows golfers from Saudi-backed series to play

ST. ANDREWS, Scotland "Players who are exempt "The Open is golf's original
(AP) — Players who have or have earned a place championship and since
joined the new Saudi Ara- through qualifying for it was first played in 1860,
bia-funded league will still the 150th Open in accor- openness has been fun-
be allowed to compete dance with the entry terms damental to its ethos and
at the British Open next and conditions will be able unique appeal," Slumbers
month, organizers said on to compete in the Cham- said.
Wednesday. pionship at St. Andrews," Phil Mickelson and Dustin
The U.S. Open had al- R&A chief executive Mar- Johnson headlined LIV
lowed players who were tin Slumbers said in a state- Golf's inaugural tourna- lected $4.75 million. The who has become the face
banned by the PGA Tour ment. ment held this month out- league is bankrolled by of the LIV league, missed
for signing up to the LIV The world's oldest major side London and won by Saudi Arabia's Public In- the cut at The Country
Golf series to play at last championship begins July former Masters champion vestment Fund.Mickelson, Club last week. He won
week's tournament. 14. Charl Schwartzel, who col- a six-time major champion the British Open in 2013.q