Trump Calls Gas Tax Holiday ‘A Great Idea’—Analysts Disagree
Summary
President Donald Trump supports temporarily stopping the federal gas tax to lower fuel prices for Americans. Experts say this idea would have little effect on gas prices and could harm government funding for roads and transportation.Key Facts
- President Trump wants to pause the 18.4-cent federal gas tax for a short time to reduce gas prices.
- The federal gas tax funds transportation projects, including roads and highways.
- The tax has not changed since 1993 and adds about 18 cents per gallon to gas prices.
- Gas prices have risen over 50% since the war with Iran started on February 28, reaching about $4.50 per gallon.
- Analysts say suspending the tax would at best slow price increases and lower prices by no more than 18 cents per gallon.
- Retailers may not pass all the tax savings to consumers, so drivers might not see the full benefit.
- Suspending the tax could reduce federal revenue by billions and hurt the Highway Trust Fund.
- Some lawmakers from both parties have proposed bills to temporarily suspend the gas tax.
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