Lower Gas Prices Like Huge Tax Cut for Middle Class


Falling gas prices will free up billions of dollars for consumers to spend next year—and the middle class will see most of the benefit.

Lower prices at the pump, down about 60 cents a gallon from a year ago, will have the equivalent effect of cutting taxes in the U.S. by between $100 billion and $125 billion, Goldman Sachs economists said Wednesday. Americans spent $370 billion on gasoline last year.

The benefit will flow across the economic spectrum, but help the middle class most.
http://blogs.wsj.com/economics/2014/12/10/lower-gas-prices-like-huge-tax-cut-for-middle-class/?mod=djemRTE_h

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