Old and Depleted: IRA's. The New Hotness: Tax-Free Gas Accounts!

Maybe if this idea catches on, they can also create tax-free bread and milk savings accounts.

That's assuming we continue to use dollars to buy things going forward. With hyperinflation now pretty well baked into the cake, we could be just a few years away from a pure barter economy.

Workers would be able to divert a portion of their paychecks into an untaxed account that can be used to pay for gas and other fuels under new legislation set to be introduced in the Senate this week.

The legislation, authored by Sen. Mark Begich (D-Alaska), is aimed at lessening the burden of high gas prices on consumers. The bill comes as lawmakers on both sides of the aisle are scrambling to do something about gas prices, which are nearing $4 a gallon.

Begich, in a short interview with The Hill Tuesday, said he modeled the legislation on medical savings accounts, which allow the public to set aside a certain portion of money before taxes for medical expenses.

“You get to put aside pre-tax dollars and the result is you get to buy your fuel with pre-tax dollars,” Begich said.

Cross-posted.