Economist Peter Schiff, who is also the co-founder of Echelon Wealth Partners, cautioned against eliminating the Federal gas tax on Monday, as it could weaken the dollar and lead to higher oil prices.
Higher Oil Prices
In a post on X, Schiff weighed in on surging oil and gas prices, saying that Trump was considering eliminating gasoline taxes to “give consumers relief” as the war drags on.
However, the elimination of taxes could see a rise in demand, but “lower taxes” would “widen deficits” as well as “weaken the dollar,” Schiff said. “The consequence will be even higher oil prices,” he added.
It’s worth noting that the federal gas tax generates more than $23 billion every year for federal highway and public transit programs. The revenue is used to maintain and improve infrastructure, and the president does not hold the power to unilaterally halt it. Any pause would require Congressional approval.
Gavin Newsom Slams Trump Amid Iran War
Gov. Gavin Newsom (D-CA) delivered sharp criticism of Trump as gas prices surged in the U.S., with GasBuddy analyst Patrick De Haan outlining that Americans had paid over $28 billion in excess costs at the pump ever since the beginning of the Iran war.
De Haan shared that the “Iran war premium” added approximately “$1.35 per gallon” at the pump in costs for ordinary Americans. Meanwhile, Trump, on Monday, warned that the fragile ceasefire agreement with Iran was on “life support” after rejecting a response by the Iranian government to a U.S.-backed proposal to end the conflict.
Meanwhile, the national average price for a gallon of gas in the U.S. was at $4.520 on Monday, according to data collected by the American Automobile Association (AAA).
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