Do gas tax holidays actually bring relief at the pump?

As President Trump proposes suspending the federal gas tax, a move that could provide some relief at the pump, experts are cautioning that state-level gas tax breaks may have a more significant impact on consumers. Currently, the federal gas tax stands at 18.4 cents per gallon, but state-level taxes can add an additional 20-30 cents per gallon, depending on the location. One expert suggests that suspending state-level gas taxes, which are often more volatile and subject to frequent increases, could result in a more substantial reduction in gas prices for drivers. By targeting state-level taxes, consumers could see a bigger decrease in their fuel costs than if the federal gas tax were suspended alone.

Trump wants to suspend the federal gas tax, but state-level gas tax breaks could have a bigger impact at the pump, says one expert.