While there’s talk of temporarily eliminating the national gasoline tax, which has been 18.4 cents since 1993, don’t do it. With the average price of gas now $4.25/gallon, the savings would only reduce gasoline prices to a still hefty $4.066/gallon. Worse, it encourages consumption, drains the Highway Trust Fund, and reimposing the tax will be difficult if gas remains expensive. Lastly, will consumers really see all the savings? (Source: Dr. Elliot Eisenberg, the Bowtie Economist).
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