Washington — As the war in Iran pushes gas prices in the United States toward $4 a gallon nationally, some lawmakers are seeking to suspend the federal tax on gasoline in the latest attempt to control the tax. High energy costs.
Lawmakers say the measure will save… Much-needed relief for families and businesses Who depend on their cars and trucks to get to work, school, and daily errands.
Asked about the gas tax at Thursday’s Cabinet meeting, President Donald Trump said he had “considered” suspending it but suggested states should consider suspending fuel taxes.
“People have talked about” suspending the gas tax, Trump said. “It’s something we have in our pocket if we think it’s necessary.”
like Gas prices rose, The Trump administration has The release of millions of barrels of oil from the US Strategic Petroleum Reserve It temporarily lifted sanctions on some Russian and Iranian oil shipments already at sea. The United States is Negotiating with countries that depend on Middle Eastern crude To join a police alliance Strait of HormuzIt usually flows about a fifth of the world’s circulating oil.
Here’s a look at what the gas tax holiday is and its potential impacts.
The 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. This does not include state taxes, which are often higher.
The tax provides more than $23 billion annually in revenue for federal highway and public transportation programs.
The president cannot suspend the federal tax on his own. Congress will have to approve the move.
Republicans control the House and Senate, and bills related to the issue are unlikely to move forward unless Trump expresses his support.
Rising gas prices are putting renewed pressure on household finances, especially for low- and middle-income Americans who have less flexibility to absorb higher transportation costs. The increases can affect how much people drive, where they travel, and how they spend money on other things.
“Trump’s war of choice with Iran is driving up gas prices across the country — and Americans should not bear the additional economic burden caused by Trump’s reckless decision-making,” said Sen. Richard Blumenthal, a Connecticut Democrat who co-sponsored the gas price relief bill with fellow Democrat Mark Kelly of Arizona.
The bill would suspend the tax until October 1. A similar measure was sponsored in the House by Democratic Rep. Chris Pappas of New Hampshire.
The gasoline tax is the single largest source of revenue for federal highway and public transportation programs.
While bills in the House and Senate would offset any loss Highway Trust Fund revenues With public funds, a tax suspension could increase the federal deficit and jeopardize the long-term sustainability of investments in highway and public transit programs, according to American Road. & Transportation Builders Association, which represents the transportation construction industry.
The group cites studies showing that many retailers do not pass on the full amount of the gas tax reduction to consumers. Research also suggests that state and federal gas taxes are just one element of a complex pricing plan that includes the global price of oil and other factors, the group said.
Some states are taking action to reduce gas tax. Republican Governor of Georgia Brian Kemp On March 20th I fell into law A 60-day suspension of the state’s 33 cents per gallon tax on gas and the 37 cents per gallon tax on diesel.
The law received support from both Republicans and Democrats. Kemp said he wants to “put taxpayer money back where it belongs, back into the pockets of hardworking Georgians.”
Early results are positive for Georgia drivers. It takes a few days or more for the tax credits to kick in to pump prices, because wholesalers pay state fuel taxes. But while gas prices across the country rose by 10 cents per gallon in the week ending Thursday, they fell 15 cents per gallon in Georgia, according to motorists group AAA. On Friday, the state had the 13th lowest average gas price among states at $3.60 per gallon. Kansas had the lowest at $3.27.
Several states — including California, Connecticut, Florida, Maryland and Utah — have considered gas tax credits as a way to provide convenience at the pump.
Connecticut Democratic Gov. Ned Lamont recently proposed temporarily suspending the state’s 25-cent-per-gallon gasoline tax and the 48.9-cent diesel tax, but it remains unclear whether that will happen. State officials are also discussing potential rebate checks for taxpayers to help mitigate high energy costs.
Republican Florida Gov. Ron DeSantis, who supported previous gas tax breaks, was skeptical that motorists would see real savings.
“Our ability to impact fuel prices is really marginal,” DeSantis said at a bill signing ceremony this month, according to Politico. “Sometimes prices get so high that the consumer doesn’t see any difference….I think when we’ve done that in the past…I don’t think the consumer really felt comfortable.”
The top tip for drivers looking to save at the pump is to obey the speed limit and drive smoothly, according to Consumer Reports. Driving habits can play Important role The magazine says in fuel economy.
Driving at a constant speed of 55 mph can increase fuel economy by 6 to 8 mpg, the publication said in a report that offered tips for getting the most out of a tank of gas. “Going 55 to 75 mph is like going from a small car to a large SUV,” the article stated.
Aside from fuel concerns, speed also poses a safety risk. The magazine said that drivers should avoid extreme acceleration and braking whenever possible, and skip premium gas if their cars allow it. ___
Associated Press writers Jeff Amy in Atlanta and Susan Hay in Hartford, Connecticut, contributed to this report.