Morning Business Report: Trump gas tax holiday proposal moves forward amid rising costs
President Donald Trump’s proposed gas tax holiday could cost the federal government an estimated $3.5 billion per month.
(LILAMAX)- President Donald Trump’s proposed gas tax holiday could cost the federal government an estimated $3.5 billion per month as lawmakers begin pushing legislation aimed at lowering fuel prices for Americans.
The proposal would suspend the federal gasoline tax of 18.4 cents per gallon and would require approval from Congress before taking effect.
Senator Josh Hawley said Monday he plans to introduce legislation that would suspend both the federal gas and diesel taxes for 90 days, with an option allowing Trump to extend the suspension for another three months.
The proposal comes as consumers continue dealing with elevated fuel costs tied in part to the ongoing war involving Iran.
Meanwhile, the housing market showed modest improvement in April.
Sales of previously owned homes rose slightly month-over-month, though the increase fell short of analyst expectations for gains above 3%.
Housing experts say mortgage rates climbed sharply in April after tensions connected to the Iran conflict pushed borrowing costs higher.
The median price for homes sold in April reached $417,700, up nearly 1% compared to the same period last year.
Despite ongoing geopolitical uncertainty, stocks continued gaining ground, with markets finishing higher across the board.
Attention is also turning toward the Federal Reserve, where Kevin Warsh moved one step closer to becoming the next Fed chair after the Senate Banking Committee approved his nomination.
His nomination now heads to the full Senate, where analysts expect confirmation.
At the same time, new survey data shows many Americans are scaling back summer travel plans because of financial concerns.
According to research commissioned by Current and conducted by Talker Research, four in 10 Americans do not plan to take a single trip this summer.
Most respondents cited affordability issues, while others said they are focused on saving money or paying off debt.
