Trump considers suspending federal gasoline tax — The Guardian

US President Donald Trump said his administration is considering suspending the federal gasoline tax amid high fuel prices ahead of the midterm elections to Congress. The Guardian reports.

Asked about a possible suspension of the tax, Trump said the administration is thinking about it. At the same time, the president cannot unilaterally suspend the federal tax: an act of Congress is required.

Tax rates and fuel prices

The federal tax in the United States is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel fuel. Suspending it would reduce the cost of a gallon of regular gasoline by about 4%.

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According to the American Automobile Association, AAA, on Tuesday the average price of a gallon of regular gasoline nationwide was $4.3685. This is more than a dollar higher than a year ago. The tax generates more than $23 billion annually in revenue to fund highways and public transportation.

Statements ahead of the elections

Trump first raised the issue of suspending the tax in May, when the war with Iran sharply increased fuel prices. Since then, prices at gas stations have remained high.

Speaking about the upcoming midterm elections, the president said he expects a good result for the Republican Party. He also claimed that prices are “already coming down significantly” and that oil prices would fall after the war ends, without specifying a timeline for its end or explaining exactly how the tax initiative could pass through Congress.