US NEWS: U.S. states floating tax breaks to relieve pain at the gas pump

March 10 – Rising fuel prices in U.S. stores to understand the rise in prices has prompted governors and legislators in a number of states to consider lowering petroleum taxes and increasing pressure on the federal government to do the same.

The campaign reflects the concern of regional governments that a sharp rise in fuel costs could hurt motorists and cool down the local economy, and that the organization’s efforts to keep prices up to date are insufficient.

“Today I am announcing that, in this time of global uncertainty, we are working on an emergency gas tax suspension to help with the pain of the pump,” Maryland Governor Larry Hogan, of the Republic, said in a tweet on Thursday. The state has a gas tax of 36.9 cents per gallon.

Georgia Governor Brian Kemp, of the Republic, said earlier this week he was working with lawmakers to stop state taxes at an estimated 29 cents per gallon, calling it “a complete failure of Washington leadership” to curb fuel prices.

Rulers and legislators in California, Florida, Maine, Michigan, New York, Tennessee and elsewhere are making a similar move. Meanwhile, a coalition of six Democrats – from Colorado, Michigan, Minnesota, Pennsylvania, New Mexico, and Wisconsin – sent a letter this week to U.S. congressional officials, asking them to support a 18.4-cent tax increase bill.

“The money saved from the tap turns into dollars returned to the pockets of consumers to buy groceries, child care, rent, and so on,” they wrote.

Prices for U.S. Consumers rises in February, culminating in an annual increase over 40 years, and inflation is set to rise sharply in the coming months.

Pump prices reached an average of $ 4.38 nationwide on Thursday, according to a group of drivers AAA, which is driven in part by rising global demand and disruption of Russian oil supplies since Moscow invaded Ukraine.

The administration of US President Joe Biden, who announced the closure of Russian oil imports this week, has tried to curb rising oil prices by arranging for the release of crude oil at emergency venues at international concerts with foreign consumers.

The White House said it was investigating other measures to reduce the impact on U.S. petrol buyers, and management has urged domestic and foreign energy producers to grab more oil as soon as possible to stabilize the market.

Taxes, however, make up the bulk of the prices on pumps. It includes 18.4 cent state gas tax, as well as national and regional taxes that can range from less than 10 cents to about 60 cents per liter.

Provincial and local governments collected a combined $ 52 billion in motor fuel tax by 2019, according to the Urban Institute. Most of that money is spent on transportation, including road, buses and metro systems.

Florida lawmakers agreed on Wednesday to suspend 27 state fuel taxes from October.

Meanwhile, the Michigan legislature has announced plans to vote on a six-month, 27.2 cents levy on petrol. Michigan Senate Majority Leader Mike Shirkey, of the Republic, has estimated that the move will save drivers $ 750 million.

In New York, lawmakers from both sides are demanding the suspension of 48 percent of state gas taxes. Governor Kathy Hochul said on Monday she was speaking to her budget office about the potential impact on the budget.

California Governor Gavin Newsom, a Democrat, said on Tuesday his administration was proposing to give the people of California a tax rebate to help cover the rising cost of fuel.

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