Trucking, Construction Groups Oppose 18.4-Cent Gas Tax Holiday as War Drives Gas to $4.50
Updated
Updated · CNBC · May 13
Trucking, Construction Groups Oppose 18.4-Cent Gas Tax Holiday as War Drives Gas to $4.50
9 articles · Updated · CNBC · May 13
$4.50-a-gallon gasoline and $5.64 diesel have not won over key fuel users: trucking and construction groups say Trump's proposed federal tax pause would do little for drivers while draining highway funding.
The plan would suspend the 18.4-cent gasoline tax and 24.4-cent diesel tax, but critics say wholesale-level savings may not fully reach consumers and the Highway Trust Fund would lose money for roads, transit and safety projects.
Budget concerns add another obstacle. The Committee for a Responsible Federal Budget estimated in March that a three-month holiday without replacement revenue would add $10.5 billion to the deficit.
Congress is split rather than partisan on the idea: some Republicans and a few Democrats back a temporary pause, while skeptics in both parties argue the bigger fix is ending the Iran war and reopening the Strait of Hormuz.
Is an 18-cent gas tax cut a real solution or a distraction from the global oil crisis driving prices?
What new funding models can replace the gas tax to sustainably pay for America's future infrastructure needs?