Higher gas prices are eating into Trump tax cut, trimming spending by Americans

The tax cut giveth, and higher gas prices taketh away.

Rising pump prices are blunting the positive impact of sweeping tax cuts on Americans' spending, potentially undercutting a pillar of economic growth this year.

President Trump’s decision this week to withdraw from the Iran nuclear deal and reinstate sanctions against that oil-rich country could constrain global supplies, further pushing up crude and gasoline prices.

“While the tax cuts have lifted take-home pay for the vast majority of workers, rising gasoline prices are eating into that benefit,” Morgan Stanley said in a note to clients this week.