Summary
Economists say that higher gasoline prices might offset the extra money Americans get from tax refunds this year. The increased costs are due to expected rises in oil prices linked to the Iran war, which could mean people spend more on gas than they save in taxes.
Key Facts
- Economists predict higher gasoline prices due to the Iran war might balance out the benefits of larger tax refunds.
- The Stanford Institute for Economic Policy Research modeled a scenario where gas prices peak at $4.36 per gallon.
- This price rise could cost the average household about $740 more this year in gas expenses.
- The same household is expected to receive an average of $748 more in tax refunds due to new tax legislation.
- Energy price forecasts are uncertain, and actual tax refund amounts can vary.
- Some people, like non-drivers and electric vehicle owners, will not see increased gas costs.
- Rising energy prices can increase costs for other goods and services, like airfare and shipping.
- Higher energy prices might slow overall spending growth this year, despite increased tax refunds.
