Trump proposes gas tax holiday, but savings may be limited
Summary
President Donald Trump proposed temporarily stopping the federal gas tax to help lower fuel prices. Experts say this would only reduce prices a little because gas costs have gone up much more than the tax. Congress must approve the plan, which could be difficult due to political disagreements.Key Facts
- The federal gas tax is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel.
- Gas prices rose by about $1.54 per gallon after U.S. and Israel actions against Iran started in late February.
- Suspending the federal gas tax could lower gas prices by about 18 cents per gallon, from $4.52 to $4.34 on average.
- Drivers would save around $2 to $3 per fill-up depending on their vehicle and location.
- The federal gas tax money supports the Highway Trust Fund, which pays for road maintenance.
- Suspending the gas tax might cost the federal government about $2.1 billion each month.
- Some states like Georgia, Indiana, and Utah have already paused their own gas taxes for more noticeable price relief.
- Lawmakers worry that cutting gas taxes could reduce funds needed to fix and maintain roads.
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