WEST PALM BEACH, Fla. — The possible suspension of the federal tax on gas may end up easing our fuel frustrations.
At the pumps in West Palm Beach, hope for a break was running high on Wednesday.
Contractor and cabinet maker Carlo Falconi thinks suspending the federal gas tax is worth a shot.
"It's good to have at least a few cents less than regular prices," Falconi said.
And the savings could add up. The federal tax of 18 cents a gallon on gas and 24 cents a gallon on diesel do have some impact, and wiping it out could be seen at the pumps pretty quickly.
"You would assume within a couple days of that happening you’re going to see the decrease go down, because all the loads will come in without the tax," said Alex Fernandez, who owns West Palm Gas on Southern Boulevard.
But while many of us see saving green at the pump, others are waving a red flag.
"Something feels better than nothing, but it doesn’t solve the problem," said Adam Hoffer with the Tax Foundation in Washington, D.C.
Hoffer said money from the federal gas tax goes into a big fund to fix bridges and highways, and it's already running a deficit, which means we all end up paying anyway.
"What usually happens is they don’t stop spending money on roads. They usually get some injection or support from the general Treasury fund," Hoffer said.
And it’s no small change. The Tax Foundation estimates suspending the gas tax amounts to $2 billion a month.
Don’t forget that other taxes, state and county, will still be in place. Octover is when we wont be paying the state gas tax that’s 19 cents a gallon.