As fuel prices soar on Iran war, some lawmakers push to suspend federal gas tax that pays for highway and public transit programs |
As fuel prices soar on Iran war, some lawmakers push to suspend federal gas tax that pays for highway and public transit programs
As the war in Iran pushes U.S. gas prices toward $4 a gallon nationally, some lawmakers are pushing to suspend the federal gasoline tax in the latest attempt to try to control surging energy costs.
Lawmakers say the action would provide much-needed relief for families and businesses that rely on their cars and trucks to get to work and school and run everyday errands.
Asked about the gas tax at a Cabinet meeting Thursday, President Donald Trump said he has “thought about” suspending it but suggested states should consider suspending their fuel taxes.
“People have talked about” a gas tax suspension, Trump said. “It’s something we have in our pocket if we think it’s necessary.”
As gas prices have spiked, the Trump administration has released millions of barrels of oil from the U.S. Strategic Petroleum Reserve and temporarily lifted sanctions on some Russian and Iranian oil shipments already at sea. The U.S. is negotiating with countries reliant on Middle East crude to join a coalition to police the Strait of Hormuz, where about one-fifth of the world’s traded oil normally flows.
Here’s a look at what a gas tax holiday is and its potential impacts.
Temporary suspension of the federal gas tax
A gas tax holiday is a temporary suspension of the federal gas tax, currently set at 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel. That does not include state taxes, which often are higher.
The tax provides more than $23 billion per year in revenue for federal highway and public transit........