For Many, Rising Gas Prices Will Cancel Any Financial Gains Of Trump Tax Cuts

Screengrab/PBS Newshour/YouTube

Lower-income Americans will be the first to see their meager tax savings disappear.

As Americans scurried to file last minute tax returns last April, Trump administration officials and congressional Republicans were hard at work touting the boosted income workers are receiving thanks to the tax cuts that passed last year.

But a recent report from Deutsche Bank indicates many Americans will see that boost deflated as gas prices rise, and those on the lower end of the income spectrum will likely say goodbye to their increased take home pay by the end of the year.

Gas prices have risen this month. And if they rise $1.05 per gallon off their current marks, it would eat the disposable income gains of last year’s tax cut legislation, according to Deutsche Bank analysis.

The national average is now $2.76 a gallon, according to GasBuddy, which is close to the most recent high in mid-2015. A $1 gain per gallon would represent a full return to the soaring prices of 2014, when the average price for a gallon approached $3.70. From 2011 to mid-2014, prices were at this level.

While a $1 increase would be required to cancel out benefits for families of all income levels, lower-income families’ gains would be wiped out much more quickly.

Comments
No. 1-3
Leyda4226
Leyda4226

So now they admitted that regular folks got financial gains from the tax cuts?

Krj
Krj

Despicable! I paid $2.89 today in Orlando, Fl

ScottW
ScottW

Damn! That extra $19/week was supposed to remodel my kitchen and buy a new car... Oh well #DidWeMAGAYet

Stories