U.S. President Donald Trump has acknowledged the financial strain faced by many Americans due to the surging gas prices. However, his proposal to halt the federal fuel tax may not have the desired impact for both him and drivers.
Trump expressed his desire on Monday for a temporary suspension of the federal gas tax, a move requiring Congressional approval. The current U.S. federal tax on a gallon of gasoline stands at 18.4 cents, a small fraction of the current nationwide average price of $4.52 US per gallon at the pumps, as reported by travel services agency AAA.
Since the commencement of the U.S.-Israel conflict with Iran at the end of February, the national average gas price has escalated by 50%, translating to a $1.54 US per gallon surge over just a 10-week period. Trump has acknowledged that slashing the tax would only marginally reduce the price, stating, “It’s a small percentage, but it’s, you know, it’s still money.”
Trump’s approval ratings have declined as gas prices have risen. With less than half a year remaining until the crucial midterm elections that could determine Republican control of Congress for the latter part of Trump’s tenure, the White House is under pressure to address inflation.
Recent polling conducted by Ipsos Public Affairs for Reuters news agency revealed that over three-quarters of respondents attributed the spike in gas prices to Trump. Alec Tyson, the lead pollster for Ipsos based in Washington, emphasized that rising prices significantly influence public perception of the president.
While suspending the gas tax enjoys general popularity, it may not be sufficient to bolster the president’s standing on economic issues or the cost of living, where broader concerns exist among Americans, Tyson pointed out.
At a Washington, D.C. service station, Oz Mangrum, a hotel manager, attributed the high gas prices to the president but expressed hope for a resolution. Mangrum disclosed that the escalating fuel costs have led him to contemplate drastic measures like switching to a bike due to spending $60 to $80 per fill-up.
Following Trump’s call for a tax pause, two Republican lawmakers—one in the House and another in the Senate—announced plans to introduce bills to enact the suspension. When questioned about the duration of the desired pause, Trump responded, “Until it’s appropriate.”
According to the Committee for a Responsible Federal Budget, a tax hiatus would cost the U.S. Treasury approximately $3.5 billion monthly. The federal gas tax, unchanged since 1993, stands at 18.4 cents per gallon for gas and 24.4 cents per gallon for diesel, as confirmed by the non-partisan Congressional Budget Office.
In Canada, Prime Minister Mark Carney’s administration temporarily suspended the federal excise tax on gasoline (10 cents per liter) and diesel (four cents per liter) in mid-April, effective until Labour Day. The equivalent of 10 cents Canadian per liter is approximately 27.6 cents US per gallon at the current exchange rate.