President Trump proposes suspending federal gas tax to lower prices
WASHINGTON, DC (WAKA) – President Trump has told CBS News in an exclusive telephone interview that he wants to temporarily suspend the federal gas tax as a way to lower prices at the pump.
“I think it’s a great idea,” the president told CBS News. “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.”
Gas prices have risen about 50% since the start of the Iran war on Feb. 28, hitting a high of over $4.52 on Sunday, according to AAA. Analysts say the prices are likely to remain high with Iran blocking access to the Strait of Hormuz.
Today, the national average is $4.06 a gallon in Alabama.
But suspending the tax, which is 18.4 cents per gallon on gas and 24.4 cents a gallon on diesel, requires an act of Congress, and pausing it would cost the federal government about a half billion dollars a week. Congress hasn’t appeared interested, CBS News reports.
However, U.S. Sen. Josh Hawley (R-Missouri) said today that he would introduce legislation to suspend the federal gas tax. U.S. Rep. Anna Paulina Luna (R-Florida) said she plans to introduce a bill in the House this week. Several Democratic lawmakers had already introduced legislation to either pause or lower it.
Revenue raised by the federal gas tax goes toward the Highway Trust Fund to construct and repair roadways, and it also pays for other transit projects.
— Information from CBS News
