Suspend the Federal Gas Tax? Good Question

本站添加: 2026-05-19

[00:00:00]Is suspending the federal gas tax to save drivers money worthwhile? Good question. President Trump floated the idea, something lawmakers have tried in the past but failed. The federal gas tax is 18.4 cents per gallon. For diesel drivers, it's 24.4 cents per gallon. And all that money collected goes into the federal highway trust fund. That means it helps pay for road projects involving interstates and mass transit. The tax generates about $41 billion a year for the fund. If it was paused for even a month, that trust fund would miss out on more than $2 billion. That means either less spending to fix roads or finding the money elsewhere, meaning other taxes like income, sales, or property. Since the point of the federal gas tax pause is to save drivers money, here's some math for you. Let's say the pause lowers prices by exactly 18 cents a gallon. For a 15-gallon tank, that's $2.70 saved. And when filled up weekly, that's about $10.80 a month. Here's the issue. Experts say the price drop would be less than 18 cents, possibly as low as 13 cents. And that's because the gas station, the oil producer, or anyone else in the supply chain would keep some of the savings for themselves. Some states are suspending their state gas tax, which is often two to three times higher than the federal tax, so the instant savings would be more noticeable. But remember, the summer driving season has arrived. More people will be on the road, and gas prices tend to rise this time of year. So, even if the tax was paused, dropping prices, demand for gas could drive the price right back to where it was in a matter of weeks. Check out our full story in the comments and hit follow for more good question segments from WCCO.