Trump defers federal diesel taxes to help farmers, but states issue warnings

A federal tax break on diesel meant to ease costs for farmers is generating more doubt than relief. President Donald Trump signed an executive order at a Nebraska campaign rally letting highway vehicles run on red-dyed diesel, normally restricted to off-road equipment because it carries no federal highway tax, through the end of the year. The dyed fuel sells for 24. 4 cents a gallon less. But the order only postpones payment, and Molly Nixon of the Cato Institute says a president lacks legal authority to tell the IRS to stop collecting a tax, so companies fear bills later, according to NPR.

In South Dakota, trucker Gerald Otte says his employer told him to stay with regular fuel, which he says has climbed from $3. 50 to $5. 89 a gallon. Governor Larry Rhoden, a Republican, also urged drivers to avoid dyed diesel, though he has told state officials not to check tanks this year. Rhoden called the situation "very confusing." The state's Democrats are pressing him to convene a special session to suspend its 28-cent per gallon diesel levy, and the South Dakota trucking association advised members to keep their habits unchanged.

Summarized by PolitiKool from NPR’s reporting. Read the full story at NPR →