President Trump said he wants to see the federal gasoline tax suspended temporarily as prices at the pump soar during the war in Iran. [some emphasis, links added]
“I think it’s a great idea. Yup, we’re going to take off the gas tax for a period of time, and when gas goes down, we’ll let it phase back in,” Trump told CBS News.
The federal government’s excise tax is about 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel, which generates approximately $500 million per week for the construction and repair of roadways, as well as other transit projects.
Suspending the tax would require an act of Congress.
The average price of gasoline in the U.S. on Monday was $4.52 per gallon, which was up from $4.14 a month ago, according to AAA.
Top image by Engin Akyurt from Pixabay.
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This is pure politics with little real reduction in gas prices since the federal tax is only 18.4 cents per gallon.
This is true. However, some blue states such as California and Washington have taxes and cap and trade policies that have quite an impact on the cost of gas. There is no way the politicians of these states would consider providing relief.