However, the presidential initiative encounters difficulties serious political obstacles: the tax – currently 18.4 cents (approx. 66 gr) per gallon (approx. 3.78 liters) of petrol and 24.4 cents (approx. 88 gr) per gallon of diesel fuel – can only be suspended by law. A gallon is it
This requires congressional consentwhich has been rather skeptical of similar proposals in the past. Although the first political initiatives are emerging, there is no cross-party agreement yet.
It is also unclear to what extent such a decision will actually bring relief to drivers. Analyzes show that previous tax cuts were often only partially felt at the stations – most of the profits remained in the supply chain.
Refueling at a gas station. Illustrative photoO. Kalacheva / Shutterstock
Simultaneously suspending the tax would mean a reduction in the state budget: A significant portion of these proceeds go to the Highway Trust Fund, which funds road and bridge projects.
Americans felt the effects of the attack on Iran firsthand
The planned tax suspension is a direct attempt to alleviate the economic effects of this conflict in the country. Whether it will be implemented and bring noticeable relief, depends largely on the political dynamics in Washington.
