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President Biden considers two proposals to combat high gas prices

A 'Federal Gas Tax Holiday' under consideration
Posted at 7:54 AM, Jun 21, 2022
and last updated 2022-06-21 07:55:08-04

BALTIMORE — President Biden is expected to make two big decisions to bring some relief to drivers who continue to face high gas prices at the pump. One effort would be to pause the federal gasoline tax and the other to offer Americans gas rebate cards as well.

Many Americans are making plans to hit the road as the July 4th holiday is less than two weeks away.

The high price of gas could stop some drivers in their tracks and have them traveling closer to home.

Several lawmakers are floating the idea of a gas tax holiday to bring relief to drivers filling up at the pump.

Biden said he's looking at data and planning to decide by the end of the week. Pausing the federal gas tax would lower the cost of gas per gallon by more than 18 cents but it also requires action by Congress.

Meanwhile, Maryland's gas tax is set to go up on July 1st by 18%. It would come out to about 7 cents a gallon.

The state comptroller Peter Franchot is asking the general assembly to create a new state gas tax holiday but to make it last 90 days instead of 30 days like the one this spring.

So far state lawmakers have not called for a special session to discuss bringing back another state gas tax holiday.

The Biden administration also is looking into gas rebate cards to relieve some of the pain at the pump.

A year ago, the average price of a gallon of regular gas in Maryland was $2.97. Now, it's at $4.94.

The price is up nearly $2 dollars more a gallon than a year ago.

It's down slightly from Maryland's record high of $5.02 reached a week ago last Monday.

Former U.S. Labor Secretary Robert Reich said more needs to be done to force oil companies to ease the financial burden on U.S. consumers.

"These companies are enjoying record profits right now, why should they be raising their prices? Why not have a windfall profits tax? Use the money to have to eliminate gas taxes on both the federal and at the state level," Reich said.

The affect of the high price of gas on summer vacation plans isn't the only concern.

High gas prices are driving 40-year-high rates of inflation, and many fear the U.S. could be headed into a recession.