President Donald Trump's proposal to suspend the federal gasoline tax would cost the U.S. government about $3.5 billion a month in lost tax revenue, Bloomberg reported Monday, citing analysts.
Trump said Monday he would seek to pause the federal 18.4 cents-a-gallon gasoline tax "until it's appropriate," though the proposal would require congressional approval.
Republican Senator Josh Hawley said he would introduce legislation to suspend federal gasoline and diesel taxes for 90 days, with the option for Trump to extend the measure.
According to a March estimate from the Committee for a Responsible Federal Budget cited by Bloomberg, some of the lost revenue could be offset by higher economic activity, though additional debt servicing costs would outweigh those gains.
A separate analysis from the Bipartisan Policy Center estimated the government would lose about $2.5 billion a month in gasoline tax revenue and roughly $900 million monthly from diesel taxes.