Penn Wharton Puts 4-Month Gas Tax Holiday Cost at $11.5 Billion
Updated
Updated · Penn Wharton Budget Model · May 18
Penn Wharton Puts 4-Month Gas Tax Holiday Cost at $11.5 Billion
6 articles · Updated · Penn Wharton Budget Model · May 18
$11.5 billion in Highway Trust Fund revenue would be lost if the federal fuel tax were suspended from June 1 to Oct. 1, according to a Penn Wharton Budget Model analysis of Trump's proposal.
$8.44 billion of that hit would come from gasoline and about $3.06 billion from diesel, equal to roughly 19% of the trust fund's fiscal 2025 outlays.
13.2 cents a gallon is the estimated drop in gasoline prices and 14.6 cents for diesel, because suppliers would pass through only about 72% and 60% of the tax cut.
$35 is the projected savings for a household filling a 15-gallon tank once a week over the 122-day period, underscoring that consumers would capture only part of the tax break.
The gas tax holiday offers a $35 saving. What is the hidden billion-dollar cost for America's crumbling roads and bridges?
Will the proposed gas tax cut actually lower prices, or will it just accelerate the collapse of America's infrastructure funding?