In between mulling the annexation of Venezuela and blustering about Iran, U.S. President Donald Trump told CBS News Monday morning, May 11, that he intends to suspend the federal gas tax “for a period of time. I think it’s a great idea. 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 over 50% since Trump started the Iran war on Feb. 28. While AAA reported on Sunday, May 10 that the national average for a gallon of gas was around $4.52 on Sunday, it is over $5 a gallon in the Western states with the average price in Hawaii and Washington state now running around $5.75 a gallon, and in California, well over $6.00 a gallon.
Even at today’s slightly lower national average price, the relief provided by removing the federal excise tax on gasoline (18.4 cents per gallon) and diesel fuel (24.4 cents) would only be around 4%, an unimpressive percentage which drops as the price rises. What it would ensure, however, is a loss of about $500 million a week in federal funds available in the Highway Trust Fund for repairing the U.S.’s notoriously pot-holed highways or at the point of collapse bridges, never mind paying for building urgently needed new transportation projects.
