Spiking gas prices in the U.S. are on track to eat up tax refunds this year, leaving most Americans with little extra to spend.

WASHINGTON (AP) — The U.S. economy was supposed to start the year with a bang, fueled by an unusually large jump in tax refunds from President Donald Trump’s tax cut legislation. Yet spiking gas prices are on track to eat up those refunds, leaving most Americans with little extra to spend.

“Next spring is projected to be the largest tax refund season of all time,” Trump said in a prime-time speech in December that was intended to address voters’ concerns about the economy and stubbornly high prices.

But that was before the Iran war, which began Feb. 28. Oil and gas prices have soared since then, with the nationwide average price of gas reaching $3.94 Sunday, up more than a dollar from just a month earlier.

  • Bustedknuckles@lemmy.world
    10·
    7 hours ago

    I think the touted tax benefits have been wholly eaten by national debt servicing, core inflation of goods, and unchecked corporations jacking up prices. Each individually, so we’ll need 3-4 times more “savings.”

    Or a competent government who understands the economy and cares about people

      • Bustedknuckles@lemmy.world
        2·
        7 hours ago

        For a while, quite a few companies didn’t want to lose customers so just ate the tariffs, hoping they’d go away quickly. The longer tariffs go on, the more companies will universally pass costs to consumers - so inflation from tariffs actually lag the tariffs a bit

  • Lemmyng@lemmy.worldEnglish
    4·
    8 hours ago

    So now the rich and powerful will step in to intervene, ri-

    HAHAAHAHAHAHAAHAHAHAHAHAHAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA NOPE!

    Sharpen your forks and knives, folks! Them shillionaires are lookin’ tastier by the day.

  • FlashMobOfOne@lemmy.worldOP
    3·
    9 hours ago

    The bigger problem is that, with oil needed to produce and transport EVERYTHING, we’re all going to be hit hard by this. I’m glad I spent the last year filling up my pantry, because food is going to become even more cost-prohibitive if Donald doesn’t declare victory and stop this shit.

    (Unlikely, since they’re begging for $200 billion to keep his stupid war going.)

    Diesel is almost $8 a gallon in Southern California today, btw.