President Donald J. Trump has announced plans to temporarily suspend the federal gas tax as prices soar in response to the ongoing war with Iran.
| PULSE POINTS |
❓ WHAT HAPPENED: President Donald J. Trump has announced plans to temporarily suspend the federal gas tax in response to rising prices. 📺 DETAIL: Since the beginning of the Iran war in late February, gas prices have surged by over 50 percent. The spike in gas prices primarily stems from Iran’s blockade of the Strait of Hormuz, a critical transit route for energy and fertilizer exports. In response to the rising cost of gas, which currently sits at $4.52 per gallon, the President announced his intention to suspend the federal gas tax on Monday. The federal gas tax, currently 18.4 cents per gallon for gasoline and 24.4 cents for diesel, generates revenue for the Highway Trust Fund, which is used to fund infrastructure projects. President Trump added that the federal gas tax would be restored once gas prices stabilize. 💬 KEY QUOTE: “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.” – President Donald J. Trump. 🎯 IMPACT: The President needs Congress to approve the suspension of the tax. Recent estimates indicate that a temporary suspension of the tax would cost the federal government roughly half a billion dollars per week. The announcement comes as polling from earlier this month suggests a clear majority of Americans are worried about rising gas prices. The same poll found that a clear majority of Americans are worried about inflation. According to the Bureau of Labor Statistics, inflation since the outbreak of the Iran war has primarily been driven by rising gas and energy prices. The recent announcement from the President represents the first major proposal to suspend the federal gas tax since the 2008 financial crisis, which failed to garner sufficient support due to concerns about cuts to infrastructure spending. |
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