Politics

WASHINGTON (Reuters) – President Joe Biden on Wednesday called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer.

“We can bring down the price of gas and give families just a little bit of relief,” Biden said in a White House address.

The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates, the official said, and will challenge major oil companies to bring ideas on how to bring back idled refining capacity when they meet with his energy secretary on Thursday.

Biden and his advisers have been discussing the issue for months amid increasing pressure to act as record-high gas prices weigh down the president’s poll ratings and cast a dark cloud over Democrats’ chances of retaining congressional power in November’s elections.

A suspension of the 18.4 cents per gallon federal gasoline tax and 24.4 cent diesel tax would require congressional approval, likely making Biden’s pitch largely symbolic.

Lawmakers in both parties have expressed resistance to suspending the tax, with some Democrats, including House of Representatives Speaker Nancy Pelosi, worried the move could have limited effect on prices if oil companies and retailers pocket much of the savings.

Biden asked Congress to suspend the fuel tax through September, a move that will cost the Highway Trust Fund roughly $10 billion in forgone revenue but could be made up from other areas of a budget that is seeing revenue grow and deficits shrink as the United States emerges from the COVID-19 pandemic.

Peter DeFazio, a Democrat and the chair of the House Committee on Transportation and Infrastructure, told reporters Wednesday a federal gas tax holiday would provide “miniscule relief” while blowing a budget hole in a Highway Trust Fund needed to fix crumbling bridges and build a modern infrastructure system.”

Some states, such as New York and Connecticut, have already paused state fuel taxes, while others have floated ideas such as consumer rebates and direct relief.

Refiners are struggling to meet global demand for diesel and gasoline, exacerbating high prices and aggravating shortages.

“Pausing the federal gas tax will certainly provide near-term relief for U.S. drivers, but it won’t solve the root of the issue – the imbalance in supply and demand for petroleum products,” a spokesperson for the American Fuel and Petrochemical Manufacturers industry group said.

Longer-term policies are still needed to boost U.S. energy production, it said.

U.S. pump prices are averaging near $5 a gallon as soaring demand for motor fuels coincides with the loss of about 1 million barrels per day of processing capacity. In the last three years many plants were closed when fuel demand cratered at the height of the pandemic.

(Reporting by Jarrett Renshaw; additional reporting by Katharine Jackson; Editing by Susan Heavey, Nick Zieminski and Grant McCool)

source

(Reuters) – President Joe Biden on Wednesday called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer.

The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates, the official said, and will challenge major oil companies to bring ideas on how to bring back idled refining capacity when they meet with his energy secretary later this week.

Biden and his advisers have been discussing the issue for months amid increasing pressure to act as record-high gas prices weigh down the president’s poll ratings and cast a dark cloud over Democrats’ chances of retaining congressional power in November’s elections.

A suspension of the 18.4 cents per gallon federal gasoline tax and 24.4 cent diesel tax would require congressional approval, likely making Biden’s pitch largely symbolic.

Lawmakers in both parties have expressed resistance to suspending the tax, with some Democrats, including House of Representatives Speaker Nancy Pelosi, worried the move could have limited effect on prices if oil companies and retailers pocket much of the savings.

“A gas tax holiday alone will not, on its own, relieve the run up in costs that we’ve seen,” the White House said in a statement. “This unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room.”

Biden is asking Congress to suspend the fuel tax through September, a move that will cost the Highway Trust Fund roughly $10 billion in forgone revenue but could be made up from other areas of a budget that is seeing revenue grow and deficits shrink as the United States emerges from the COVID-19 pandemic, it added.

Some states, such as New York and Connecticut, have already paused state fuel taxes, while others have floated ideas such as consumer rebates and direct relief.

News of Biden’s announcement – which will come in an afternoon speech – first came on Tuesday night.

Refiners are struggling to meet global demand for diesel and gasoline, exacerbating high prices and aggravating shortages.

“Pausing the federal gas tax will certainly provide near-term relief for U.S. drivers, but it won’t solve the root of the issue – the imbalance in supply and demand for petroleum products,” a spokesperson for the American Fuel and Petrochemical Manufacturers industry group said, adding longer-term policies are still needed to boost U.S. energy production.

U.S. pump prices are near $5 a gallon as soaring demand for motor fuels coincides with the loss of about 1 million barrels per day of processing capacity. In the last three years many plants were closed when fuel demand cratered at the height of the COVID-19 pandemic.

(Reporting by Jarrett Renshaw; additional reporting by Katharine Jackson; Editing by Ross Colvin, Christopher Cushing, Susan Heavey and Nick Zieminski)

source

By Jarrett Renshaw

(Reuters) -U.S. President Joe Biden on Wednesday called on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices and provide temporary relief for American families this summer.

The president also urged states to temporarily suspend state fuel taxes, which are often higher than federal rates, the official said, and will challenge major oil companies to bring ideas on how to bring back idled refining capacity when they meet with his energy secretary later this week.

Biden and his advisers have been discussing the issue for months amid increasing pressure to act as record-high gas prices weigh down the president’s poll ratings and cast a dark cloud over Democrats’ chances of retaining congressional power in November’s elections.

A suspension of the 18.4 cents per gallon federal gasoline tax and 24.4 cent diesel tax would require congressional approval, likely making Biden’s pitch largely symbolic.

Lawmakers in both parties have expressed resistance to suspending the tax, with some Democrats, including House of Representatives Speaker Nancy Pelosi, worried the move could have limited effect on prices if oil companies and retailers pocket much of the savings.

“A gas tax holiday alone will not, on its own, relieve the run up in costs that we’ve seen,” the White House said in a statement. “This unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room.”

Biden is asking Congress to suspend the fuel tax through September, a move that will cost the Highway Trust Fund roughly $10 billion in forgone revenue but could be made up from other areas of a budget that is seeing revenue grow and deficits shrink as the United States emerges from the COVID-19 pandemic, it added.

Some states, such as New York and Connecticut, have already paused state fuel taxes, while others have floated ideas such as consumer rebates and direct relief.

News of Biden’s announcement – which will come in an afternoon speech – first came on Tuesday night.

Refiners are struggling to meet global demand for diesel and gasoline, exacerbating high prices and aggravating shortages.

“Pausing the federal gas tax will certainly provide near-term relief for U.S. drivers, but it won’t solve the root of the issue – the imbalance in supply and demand for petroleum products,” a spokesperson for the American Fuel and Petrochemical Manufacturers industry group said, adding longer-term policies are still needed to boost U.S. energy production.

U.S. pump prices are near $5 a gallon as soaring demand for motor fuels coincides with the loss of about 1 million barrels per day of processing capacity. In the last three years many plants were closed when fuel demand cratered at the height of the COVID-19 pandemic.

(Reporting by Jarrett Renshaw; additional reporting by Katharine Jackson; Editing by Ross Colvin, Christopher Cushing, Susan Heavey and Nick Zieminski)

source

By Jarrett Renshaw

(Reuters) – U.S. President Joe Biden on Wednesday will call on Congress to pass a three-month suspension of the federal gasoline tax to help combat record pump prices, according to a senior administration official.

The president will also call on states to temporarily suspend state fuel taxes, which are often higher than federal rates, the official said, and he will challenge major oil companies to come to a meeting with his energy secretary later this week with ideas on how to bring back idled refining capacity.

Biden and his advisers have been discussing the issue for months amid increasing pressure to take action to address record-high gas prices that have weighed down the president’s poll ratings and cast a dark cloud over Democrats’ chances of retaining congressional power in November’s elections.

A suspension of the 18.4 cents a gallon federal gasoline tax and 24.4 cent diesel tax would require congressional approval, likely making Biden’s support behind the effort largely symbolic.

Lawmakers of both parties have expressed resistance to suspending the tax, with some Democrats, including House of Representatives Speaker Nancy Pelosi, worried that the move would have limited effect on prices and oil companies and retailers would pocket much of the savings.

“A federal gas tax suspension alone won’t fix the problem we face, but it will provide families a little breathing room as we continue working to bring down prices for the long haul,” a second official said.

Biden will ask Congress to suspend the fuel tax through September, a move that will cost the Highway Trust Fund roughly $10 billion in forgone revenue, the official said. The White House believes it can make up the lost revenue from other areas of a budget that is seeing revenue grow and deficits shrink as the United States emerges from the COVID-19 pandemic.

Some states, such as New York and Connecticut, have already paused state fuel taxes, while others have entertained ideas like consumer rebates and direct relief.

News of Biden’s announcement – which will come in an afternoon speech – first came on Tuesday night.

Refiners are struggling to meet global demand for diesel and gasoline, exacerbating high prices and aggravating shortages.

U.S. pump prices are near $5 a gallon as soaring demand for motor fuels coincides with the loss of about 1 million barrels per day of processing capacity. In the last three years many plants were closed when fuel demand cratered at the height of the COVID-19 pandemic.

(Reporting by Jarrett Renshaw; Editing by Ross Colvin and Christopher Cushing)

source

WASHINGTON (AP) — Senators have moved to the brink of an agreement on a bipartisan gun violence bill, Democrats’ lead negotiator said Tuesday, potentially teeing up votes this week on an incremental but notable package that would stand as Congress’s response to mass shootings in Texas and New York that shook the nation.

Nine days after Senate bargainers agreed to a framework proposal — and 29 years after Congress last enacted a major measure curbing firearms — Sen. Chris Murphy, D-Conn., told reporters that a final agreement on the proposal’s details was at hand.

The legislation lawmakers have been working toward would toughen background checks for the youngest firearms buyers, require more sellers to conduct background checks and beef up penalties on gun traffickers. It also would disburse money to states and communities aimed at improving school safety and mental health initiatives.

“I think we’ve reached agreement,” Murphy said. “And just we’re dotting the I’s and crossing the T’s right now. I think we’re in good shape.”

Sen. John Cornyn, R-Texas, the chief Republican bargainer, spoke on the Senate floor moments later and said he, Murphy and the other two top Senate bargainers had “reached agreement.”

The senators did not initially say how they’d resolved the two major stumbling blocks that had delayed agreement on the plan’s legislative language.

One was how to make abusive romantic partners subject to the existing ban that violent spouses face to obtaining guns. The other was providing federal aid to states that have “red flag” laws that make it easier to temporarily take firearms away from people deemed dangerous or to states that have violence intervention programs.

If enacted, the election-year measure would spotlight a modest but telling shift in the politics of an issue that has defied compromise since Bill Clinton was president.

After 10 Black shoppers were killed last month in Buffalo, New York, and 19 children and two teachers died days later in Uvalde, Texas, Democrats and some Republicans decided that this time, measured steps were preferable to Congress’ usual reaction to such horrors — gridlock.

source

WASHINGTON (Reuters) – Supporters of a U.S. bill aimed at reining in Big Tech platforms like Amazon.com and Alphabet’s Google have flooded lawmakers with nearly 4,000 phone calls, while critics of the legislation sent a letter telling senators it would “harm consumers.”

Versions of the bill have progressed further than any previous Big Tech antitrust legislation, with strong bipartisan support in the House of Representatives and Senate. The legislation seeks to bar companies from favoring their own businesses in search results and other ways.

Both Senator Amy Klobuchar and Representative David Cicilline, lead sponsors in each chamber, have predicted that their bills have enough support to pass Congress, if they come to a vote.

But the Senate has other matters on the calendar. Negotiators are close to a deal on gun control, and Senate Majority Leader Chuck Schumer has promised quick action on any bipartisan deal. That likely would take up much of this week’s Senate floor action once the bill is introduced.

To keep the pressure on, advocates for the Big Tech bill organized for small and medium-sized businesses and others to contact lawmakers via email – which 26,000 of them did, according to Evan Greer of the group Fight for the Future.

Fight for the Future and other advocacy groups also arranged for supporters to make 3,900 calls to lawmakers, Greer said.

Opponents have also kept up the pressure.

A long list of former antitrust enforcers who now teach economics, law, or business, sent a letter to senators Monday saying that the bill “is likely to reduce innovation and harm consumers.”

Signatories include Doug Melamed and Carl Shapiro, both of whom previously served in the Department of Justice’s antitrust division.

Since the beginning, the bills have been the subject of intense lobbying, with opponents warning of dire consequences such as an inability to protect consumers from hackers and privacy violations. Advocates say the legislation is needed to prevent stagnation in the technology market.

(Reporting by Diane Bartz; Editing by Rosalba O’Brien)

source

AUSTIN, Texas (AP) — A recount in Texas affirmed Democrat U.S. Rep. Henry Cuellar as the winner Tuesday of his primary race against progressive challenger Jessica Cisneros, who had trailed by fewer than 200 votes following a runoff in May.

Cuellar, a nine-term congressman, defeated Cisneros by 289 votes, according to results of the recount announced by by the Texas Democratic Party.

The Associated Press had not previously declared a winner in the race because it had been too close to call.

It is the second time that Cisneros, a 29-year-old immigration attorney who once interned for Cuellar, has lost a challenge to her former boss, whose moderate record along Texas’ heavily Hispanic southern border has aligned him at times with Republicans on issues including abortion and guns.

This time Cisneros got even closer than in 2020, when she lost by 4 percentage points behind national support from the party’s progressive leaders, including Sens. Bernie Sanders of Vermont and Elizabeth Warren of Massachusetts. They endorsed her again in the rematch along with abortion-rights groups that swooped into the race as the U.S. Supreme Court signaled it might overturn Roe v. Wade.

Cuellar is one of the last anti-abortion Democrats in Congress and has also bucked party for years over his support of gun rights and tougher stance on immigration. But he still kept the support of House Speaker Nancy Pelosi and Democratic leadership.

Cuellar will face Republican Cassy Garcia in November in a district that remains favorable to Democrats, But the GOP has growing confidence in South Texas, a longtime Democratic stronghold, after Republican Mayra Flores flipped an open congressional seat in a special election Tuesday.

source

By Patricia Zengerle

WASHINGTON (Reuters) – The congressional committee investigating the Jan. 6, 2021, attack on the U.S. Capitol on Tuesday will focus on then-President Donald Trump’s efforts to pressure state officials as part of his broader effort to remain in office despite losing 2020’s election, committee aides said.

The committee hearing is the fourth of at least six expected this month as the nine-member House of Representatives select committee discloses results of its nearly yearlong investigation into the attack on the Capitol by thousands of Trump supporters.

Witnesses appearing in person will include Georgia Secretary of State Brad Raffensperger and Arizona House Speaker Rusty Bowers, both Republicans like Trump. Gabriel Sterling, chief operating officer at the Georgia secretary of state’s office, another Republican, and Wandrea ArShaye “Shaye” Moss, a former Georgia election worker who faced threats after being targeted by name by Trump associates, will also appear.

Trump held a raucous rally on Jan. 6, urging his supporters to march on the Capitol. He had seized on that date – when Vice President Mike Pence was to meet with lawmakers there to formally certify the election – as a last-ditch chance to hold onto the White House despite his loss at the polls.

The panel of seven Democrats and two Republicans has used the hearings to build a case that Trump’s efforts to overturn his defeat amounted to illegal conduct, far beyond normal politics.

Democrat Joe Biden in November 2020 defeated Trump in both Georgia and Arizona, two states that recently had backed Republicans in presidential elections. Trump and his associates put pressure on officials from those states to overturn the election results, partly via an effort to submit alternate slates of electors backing Trump.

‘FIND’ ENOUGH VOTES

Trump called Raffensperger on Jan. 2, 2021, telling Georgia’s top election official to “find” enough votes for him to win Georgia’s electoral votes, and Raffensperger remained a frequent target of Trump’s criticism. The secretary of state last month held off a Trump-backed challenger to win the Republican Party’s primary as he ran for reelection.

Raffensperger will face a Democratic opponent in the general election on Nov. 8.

“President Trump and his allies drove a pressure campaign based on lies, and these lies led to threats that put state and local officials and their families at risk,” a committee aide told reporters on a conference call on Monday, speaking on condition of anonymity to preview the hearing.

Trump has repeatedly denied wrongdoing, while reiterating false accusations that he lost the election only because of widespread fraud that benefited Biden. Trump and his supporters – including many Republican members of Congress – dismiss the Jan. 6 panel as a political witch hunt, but its backers say it is a necessary probe into a violent threat against democracy.

Different members of the select committee have led questioning in each of the hearings to date. Democratic Representative Adam Schiff will take that role on Tuesday.

Schiff said on CNN’s “State of the Union” show on Sunday that the House panel would present evidence Trump was involved in the failed bid to submit slates of fake electors.

Evidence against Trump could potentially be crucial in an ongoing criminal investigation by the Department of Justice into the alleged fake elector plot.

The committee has scheduled a second hearing this week. That session, on Thursday, will focus on Trump’s efforts to assemble a team at the Justice Department to promote his false voter fraud claims, the committee aide said.

It had been scheduled for June 15 but was postponed. The committee did not provide a reason for the change.

(Reporting by Patricia Zengerle; editing by Jonathan Oatis)

source

(Corrects to show that treasurer position is an appointment, not a nomination)

By David Lawder

ROSEBUD, South Dakota (Reuters) -U.S. Treasury Secretary Janet Yellen on Tuesday will announce the appointment of Mohegan Indian Tribe Lifetime Chief Marilynn Malerba as U.S. Treasurer, marking the first time a Native American’s signature will appear on U.S. currency, the Treasury said.

Yellen, during a visit to the Rosebud Sioux Tribe in South Dakota, also will announce the creation of a new Treasury Office of Tribal and Native Affairs, which will report to the treasurer.

Malerba’s appointment by President Joe Biden also will allow Yellen’s signature to be added to the U.S. currency, as this was prohibited without a U.S. treasurer in place. Dollar notes have been printed since Yellen took office last year with former Treasury secretary Steven Mnuchin’s signature on them.

The treasurer position has been vacant since January 2020, when Jovita Carranza left to become Small Business Administrator in the Trump administration. Malerba’s appointment needs no confirmation by the U.S. Senate.

“With this announcement, we are making an even deeper commitment to Indian Country,” Yellen said in prepared remarks to be delivered at the Rosebud Sioux reservation. “Chief Malerba will expand our unique relationship with Tribal nations, continuing our joint efforts to support the development of Tribal economies and economic opportunities for Tribal citizens.”

Malerba, who had a lengthy career as a registered nurse, has been chief of the Connecticut-based Mohegan tribe since 2010 and previously chaired its tribal council and served as its executive director of Health and Human Services, according to the Mohegan website https://www.mohegan.nsn.us/explore/heritage/our-ceremonial-leaders/chief.

The Treasury said Malerba will join Yellen at the Rosebud Sioux reservation on Tuesday, where Yellen will discuss the impact of some $20 billion in state and local fiscal recovery funds on tribal governments.

(Reporting by David Lawder; Editing by Bradley Perrett)

source

By David Lawder and Heather Timmons

WASHINGTON (Reuters) – President Joe Biden’s pointed criticism of oil and gas companies for earning massive profits as families suffer from high gasoline prices challenges a pillar of American capitalism: that U.S. companies should make as much profit as they legally can, and direct that windfall back to investors.

Biden told Shell Plc, Exxon Mobil Corp and Chevron Corp and other refining giants last week they have another responsibility: to do everything they can to bring down high gasoline prices that are squeezing American consumers and driving up inflation.

“We see it as a patriotic duty,” White House press secretary Karine Jean-Pierre said Wednesday. Russia’s invasion of Ukraine has caused gas price hikes, she said.

“We know where to put the blame, on the war. But oil companies, oil refiners they have responsibilities too. What they have been doing is taking advantage of the war.”  

Particularly galling to the White House is the jump in industry stock buybacks, returning to investors profits that the administration wants invested in more refining capacity to bring gasoline prices down.

Biden’s criticism is being soundly rebuffed by industry executives and trade groups as having no place in an economic discussion.

“The injection of ‘patriotism’ into this is an attempt to put shame on folks,” said Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, the pro-business lobby group. “These are market forces and market functions.”

Instead, Bradley and other industry officials say the administration should remove import tariffs and cut regulations to allow more domestic fossil fuel production and refining, which would signal to energy markets that supplies will increase.

But the idea that U.S. chief executives should serve other stakeholders besides investors, and take direction from other masters besides market forces isn’t new for Biden, the U.S. presidency, or for corporate America.

His recent push is part of a slow-boil rethink of the role that companies, chief executives and the very wealthy should play in the U.S., what workers and average citizens deserve and whom governments should champion and protect.

Biden himself campaigned on a promise to fix American inequality, raise wages and force companies to pay their “fair share” in taxes, part of a broader attempt to reshape the U.S. economy.

Democrats’ roughly 100-member Congressional Progressive Caucus has pushed bills expanding workers’ and consumers’ rights, playing a growing role in Washington lawmaking.

And these companies have made promises too. In the summer of 2019, CEOs of more than 180 big U.S. companies, including Exxon and Chevron, pledged https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans they would not only work for shareholders, but employees, customers, suppliers and their communities to “build an economy that serves all Americans.”

Inflation hits poorer Americans particularly hard because they spend a greater percentage of their income on food and fuel. Asked last week about the pledge in the context of Biden’s remarks, the Business Roundtable group that organized it said in an email: “BRT CEOs, including our energy members, are attempting to do just that while navigating a global energy crisis, high costs for crude oil and other inputs, and an adverse regulatory and investment environment.”

Biden’s attempt to shame these companies into taking less profit has historical precedent.

President John F. Kennedy attempted to curb steel prices https://www.jfklibrary.org/archives/other-resources/john-f-kennedy-press-conferences/news-conference-30 60 years ago, criticizing “a tiny handful of steel executives whose pursuit of private power and profit exceeds their sense of public responsibility,” and accusing them or showing “utter contempt for the interests of 185 million Americans.”

Kennedy’s diatribe in April 1962 came in response to steel companies announcing a $6-a-ton price increase, shortly after agreeing to a new contract — brokered by Kennedy’s administration — with the United Steelworkers union. A day after Kennedy’s remarks, the companies rescinded the price hike.

Unlike today, the exchange came at a time when steel profits were declining, imports were increasing and shares were falling. Announcing disappointing earnings a month later, U.S. Steel Corp CEO Roger Blough reportedly told shareholders:

“This concept is incomprehensible to me – the belief that government can ever serve the national interest in peacetime by seeking to control prices in competitive American business, directly or indirectly, through force of law or otherwise.”

Jawboning companies “to reduce inflation has never been very effective,” said Martin Bailly, a senior fellow in economic studies at the centrist Brookings Institution think tank.

“Biden’s frustration is understandable because there is no tool to reduce inflation except to put the whole economy into a downturn,” said Bailly, an expert on regulation and productivity.

“I think the right approach is to tough this situation out. Tell Americans that the inflation is the result of disruptions from COVID-19 and the huge price shock from the Russia-Ukraine conflict. Support the Federal Reserve and say that things will be bad for some time, but we will get through this and restore growth and price stability as soon as possible.”

(Reporting by David Lawder, Jarrett Renshaw abd Heather Timmons; Editing by Jonathan Oatis)

source