Trump’s Proposed Gas Tax Holiday Unlikely to Offset High Costs, Experts Say
Analysts say a five-month suspension could cut revenues by $17 billion and do little to lower the nation’s average pump price of $4.52.
- On Monday, President Donald Trump voiced support for a temporary federal gas tax holiday to help ease consumer costs at the pump. The current federal excise tax is 18.4 cents per gallon.
- Driven by the war with Iran, the national average gas price has jumped 45% since the conflict began, reaching $4.52 per gallon on Monday according to AAA. Hampton Roads driver Gerald Flowers reported feeling financial strain.
- A 2022 study in Energy Economics found tax suspensions pass through to consumers by only about 79%, meaning an 18-cent holiday would save drivers about $1.80 per 10 gallons. Financial analysts warn this minimal relief may not justify the proposal.
- Senate Majority Leader John Thune expressed skepticism on Monday about the proposal, noting that Congress holds sole authority over tax policy. Legislative action is required to implement any federal tax change.
- Estimates from the Bipartisan Policy Center indicate a five-month suspension would reduce federal revenue by nearly $17 billion. This revenue funds highway maintenance and transportation infrastructure, raising long-term concerns about infrastructure deficits.
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Is Trump’s Affordability Pivot Enough?
Punchbowl News: “President Donald Trump is finally putting his weight behind legislation aimed at bringing down the sky-high cost of living, calling for a gas tax holiday and urging the House to pass the Senate’s long-stalled affordable housing bill.” “Yet Trump’s policies are — in part — why prices are so high, including the war with Iran and wave after wave of tariffs. That’s the Hyde part.” “The president’s new efforts could be too little, to…
Trump’s proposed gas tax holiday unlikely to offset high costs, experts say
As the Iran war continues to force oil and gas prices to record highs, President Donald Trump on Monday voiced support for a temporary holiday on the federal gas tax to help ease consumers costs at the pump.Speaking to reporters in the Oval Office, Trump proposed pausing the federal excise tax on gasoline, currently set at 18.4 cents per gallon, until its appropriate. The president went on to acknowledge such a move would have a limited impact, …
Trump’s Gas Tax Holiday Would Cost US$3.5 Billion a Month - Energy News, Top Headlines, Commentaries, Features & Events
Trump is seeking to suspend the federal 18.4 cents U.S. a gallon tax on gasoline By Will Kubzansky A federal gasoline tax holiday as proposed by U.S. President Donald Trump would result in billions of dollars in lost tax revenue each month, independent budget analysts say. Trump told reporters at the White House on Monday ...
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