Economist Peter Schiff, co-founder of Echelon Wealth Partners, is pushing back against the idea of eliminating the federal gas tax. In a post on X Monday, Schiff argued that while President Trump may be considering the move to give consumers relief from surging oil and gas prices as the Iran war drags on, it could backfire.
Schiff explained that removing the tax would boost demand, but "lower taxes" would "widen deficits" and "weaken the dollar." His conclusion: "The consequence will be even higher oil prices."
It's worth noting that the federal gas tax generates more than $23 billion every year for federal highway and public transit programs. That revenue keeps infrastructure running, and the president can't unilaterally halt it—any pause would need Congressional approval.
