BOTTOM LINE: The White House released a fact sheet this morning calling for a3-month suspension of the 18 cents/gallon federal gasoline tax (3.7% of the current national retail price) and for states to suspend their own taxes.
However, we think the odds are less than even that Congress votes to suspend the tax, and we do not expect many states to suspend their taxes.
The report goes on to enumerate 5 points related to how different states will likely react to the Federal holiday. Some may piggyback and remove their own taxes, others may not.
Most interestingly to us is what the report omits. The White House is also considering a gas rebate card, but that got squashed for now. Goldman does some analysis on why that may have been and why it may not be a dead idea just yet. Full report attached.
