Tuesday, June 5, 2018

Your tax cut—such as it is—already eaten up by rapidly rising gas prices

MIAMI, FL - APRIL 09:  Customers pump gas into their vehicles as reports indicate that the price of gasoline continues to rise on April 9, 2018 in Miami, Florida. AAA forecasts the national gas price average will be as much as $2.70/gallon this spring and summer.  (Photo by Joe Raedle/Getty Images)
Donald Trump wants voters to go into November’s midterm elections feeling giddy with economic well-being from the tax law he believes—or just wants us to believe—is a game-changer for the average family. Most families, though, aren't seeing big benefits from the Republican tax plan. What they are seeing, though, is high prices at the gas pump, caused in part by Trump withdrawing from the Iran deal.
“Gas prices will reduce the benefits of the tax cut by at least one-third, but I think the impact may actually be much larger than that because the bulk of the tax cuts go to high-income households who aren’t going to spend much of it,” said Mark Zandi, chief economist at Moody’s Analytics. “Gas prices mean less today than they did 20 years ago, but they still mean a lot, especially to those folks living on the margins in lower and lower-middle income groups.”
Not to mention, Trump voters are more likely to come from areas where getting around means driving a car. And TAAT (There’s Always A Tweet):
Gas prices are at crazy levels--fire Obama!

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