The Trump administration is working with Congress on a proposal to suspend federal gasoline and diesel taxes as the war in Iran drives up fuel prices, Bloomberg writes.
The plan under discussion would pause the 18.4-cent-per-gallon gasoline tax and 24.4-cent-per-gallon diesel tax, while potentially phasing the taxes back in gradually over more than a year to avoid a rush on fuel purchases before the holiday ends.
Gas prices averaged $4.53 per gallon Monday, up 52% since the start of the conflict, while diesel climbed to $5.65, according to AAA figures cited by Bloomberg.
Supporters say even modest per-gallon savings could add up for consumers, while critics warn that a tax holiday may encourage more fuel buying, reduce highway funding and may not fully reach drivers at the pump. Lawmakers have floated competing versions, including a 90-day holiday with presidential extension authority and an 18-month pause followed by a gradual return.
Bloomberg has the full story. A subscription may be required.
AI on the job
