With the rising price of gas hitting Americans hard, and peak driving season upon us, it’s time for a holiday — a tax holiday, that is.
The current spike in energy costs is directly related to the war in Iran and the Islamic Republic’s blockade of the Strait of Hormuz; even the war’s end won’t bring prices down rapidly, so Congress should offer the public some relief.
Pump prices nationwide average around $4.50 per gallon, up 48% since the beginning of March; suspending the federal 18 cents-a-gallon excise tax (and 24 cents for diesel) will make a noticeable difference.
Talk of a summer-long gas tax holiday has floated around Washington for weeks; President Donald Trump observed that “it’s something we have in our pocket if we think it’s necessary.”
He also encouraged states to lead the way, but they can follow the feds.
State gas taxes are almost always higher, though many vary according to arcane formulas: California’s rate now is the highest at 71 cents per gallon, with Illinois and Pennsylvania right behind; New York is in the middle of the pack at 25.4 cents per gallon.
Sounds like a job for Albany, Sacramento and so on: Their obese budgets can take the hit.
Politically, it would be smart for smaller states to suspend gas levies so motorists in neighboring states might take note of how much extra they really are paying in taxes.
As it is, with an average 55 cents in total taxes per gallon of gas, a typical two-car family, assuming two fill-ups per week, pays roughly $1,000 a year in gasoline tax.
That’s real money.
The hit is far higher for truckers and farmers, who run vehicles (mostly on diesel) all day long; those costs get passed along to all the rest of us.
Some Republicans aren’t enthusiastic about suspending the federal tax, since it goes to the Highway Trust Fund, which would be out $6 billion or more from a summertime tax hiatus — but Congress can divert that money from some other account (start closing down those Learing Centers).
Pain at the pump is happening now, and it’s acute; Washington and the states can relieve some of the hurt.
A gas-tax holiday is simply the right thing to do.
