By Arlenys Tabare
Since the conflict in the Middle East began to date, The price of gasoline in the United States has increased by 50%settling at the beginning of this week at $4.52 per gallon, according to data from the American Automobile Association (AAA).
And although many economists assure that this year the cost of fuel will not fall unless the war against Iran ceases, this Monday in a telephone interview, President Donald Trump assured that his next objective is to suspend the federal gasoline tax for “a period of time.”
According to statements by the US president to CBS News, it is planned to eliminate the tax and, once prices drop, gradually reintroduce it.
The federal gasoline tax in the US has been in effect since 1993, when A fixed tax of 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel was established through the Omnibus Budget Reconciliation, this with the purpose of financing roads, road infrastructure and other public transportation projects.
Therefore, to suspend it would require the approval of a law from Congress, and also Its interruption for a “period of time” would cost the federal government hundreds of millions of dollars weekly.
For his part, Republican Senator Josh Hawley also spoke out this Monday on a bill to suspend the federal gasoline tax, like other Democratic legislators who had previously presented bills with the purpose of reducing or suspending the tax.
There will be no bailout for the airlines
Regarding the proposal for “a financial rescue” for some US airlines that in recent months have been affected by the increase in fuel. President Trump said: “Actually, no bailout proposal has been presented. The airlines are not doing badly,” said.
Since the fuel increase, many airlines indicated that they could not maintain operational costs without making an adjustment to their travel rates, so both domestic and international flights are expected to be more expensive this summer.
A peace proposal with Iran
During the interview with CBS, the president described Iran’s latest peace proposal as totally unacceptable. “It was a bad proposal, a stupid proposal, in fact, made by people who have no idea of the danger they are in. A very stupid proposal. Poorly written, poorly presented,” Trump added.
And regarding the closure of the Strait of Hormuz, Trump indicated that Iran’s reaction to closing it is because it is “the only weapon they have.” Although the president commented that this weapon “is no longer as effective, but it is the only one they have left. “We would have opened it, if it weren’t for the fact that I did favors for certain countries that asked me not to do it,” said. However, he has not yet stated that the operation to give safe passage to the ships will be restarted.
Keep reading:
- Economists from the Monetary Institution of The US assure that the FED will not cut interest rates until the second half of 2027
- US consumer confidence hits record lows as war in Iran drags on
- 115,000 jobs were created and unemployment remains stable in April
