economy
Federal gas tax: What it is, and whether Trump's suspension could help
President Donald Trump's latest effort to curb soaring gas prices caused by the war in Iran is to call for a suspension of the federal gas tax.
TL;DR
- President Trump is calling for a suspension of the federal gas tax to combat rising gas prices.
- Gas prices have risen nearly 50% since the war in Iran started, with the national average at $4.50 per gallon.
- The federal gas tax is 18.4 cents per gallon for gas and 24.4 cents per gallon for diesel.
- The tax was first introduced in 1932 as a temporary measure but became permanent.
- The tax generates around $36 billion yearly, funding federal highways and public transit.
- The effectiveness of suspending the tax in reducing consumer prices is unclear.