Gas Tax Suspension Unlikely as White House Dismisses Idea Amid High Prices
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The White House has stated a federal gasoline tax suspension is not currently under consideration, despite high prices at the pump and legislative proposals. A suspension could cut retail prices by 9% to 14% per gallon but would reduce infrastructure funding and increase the deficit. Analysts estimate only a 25% chance Congress will approve such a measure.
Facts First
- The White House says a gas tax suspension is 'not currently under consideration' despite high fuel prices.
- Suspending the tax could cut retail prices by 9% to 14% per gallon, though suppliers may not pass on all savings.
- A five-month suspension would reduce federal revenue by $17 billion, cutting Highway Trust Fund inflows and raising the deficit.
- Analysts give a 25% chance Congress will approve a suspension, with some state-level precedents existing.
- Gasoline prices have risen nearly $1.50 per gallon since the war started, reaching a national average of $4.46.
What Happened
The White House has stated that suspending the federal gasoline tax is not currently under consideration as a way to lower fuel prices. This comes as the national average gasoline price reached $4.46 per gallon, an increase of nearly $1.50 per gallon since the war started. Earlier this year, several legislative proposals were floated, including from Texas Democratic Senate nominee James Talarico and Senator Mark Kelly (Ariz.).
Why this Matters to You
You are paying significantly more to fill your tank than you were a few months ago. While a federal tax suspension could lower your per-gallon cost, it is not a policy the administration is actively pursuing. The federal taxes on gasoline and diesel fund the Highway Trust Fund, which pays for road maintenance and expansion. A suspension could temporarily ease your fuel expenses but might lead to less funding for the roads you drive on.
What's Next
Congress may still consider the idea, though analysts estimate only a 25% chance of approval. If a suspension were passed, it would likely be temporary, similar to actions previously taken by states like Georgia and Indiana. The policy's future appears to depend on continued political pressure and the trajectory of global energy markets, which could keep prices volatile.