President Donald Trump is floating a pause on the federal gas tax as fuel prices climb amid the war in Iran, framing the idea as a way to ease some of the pressure on households already dealing with rising everyday costs.
The proposal could sound like fast relief for drivers. But it would need congressional approval, and critics have long argued that gas tax pauses do little to address the bigger issue that Americans remain tied to an expensive, unpredictable transportation system built around oil.
Estimates suggest it would save the average driver about $35 total over four to five months while costing the country $11.5 billion in lost revenue, according to Trump's alma mater, the University of Pennsylvania's Wharton School, in an analysis of the proposal.
In an interview with CBS News on Monday, Trump said of a federal gas tax suspension, "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."
The idea isn't a new one. Lawmakers from both parties have floated gas tax suspensions in the past, and critics have often written them off as more political messaging than meaningful economic relief.
Still, the latest jump in fuel costs has brought the idea back into the spotlight, with some politicians signaling support.
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Now, average gas prices across the country have hit $4.50 per gallon. Prices have reached this level despite the president releasing oil reserves in addition to lifting restrictions on transport ships that are transporting fuel.
If Congress were to approve a pause, drivers could see a small drop in gas prices, at least on paper. But it is not clear that the full savings would actually make it to consumers, especially during a period of market volatility. This is because the tax isn't collected at the pump, but at the refinery.
For families already living paycheck to paycheck, a jump in gas prices can hit hard. Commuters, gig workers, parents driving long distances for school or child care, and people in rural areas often do not have many alternatives when fuel costs rise. That is part of what makes a gas tax pause such an appealing political proposal.
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