Letters to Washington
| February 18, 2022

Opposition Letter to Gas Tax Holiday

We write in strong opposition to S. 3609, the “Gas Prices Relief Act of 2022” and the companion bill the “Gas Prices Relief Act” introduced in the House today. These bills will only further weaken the federal Highway Trust Fund and are shortsighted, since the gasoline excise tax is helping to pay for the historic “Infrastructure Investment and Jobs Act (IIJA)” just passed in November of last year. While we understand the pain Americans are feeling at the pump and throughout the economy due to rising inflation, a gas tax holiday is not the answer to this problem. Federal motor fuel taxes are applied at the wholesale level. Notwithstanding an intention that any savings be passed on, there is no guarantee that reducing the federal tax by 18.4 cents per gallon will result in an 18.4 cent reduction when drivers fill their tanks. There are many factors at play that will impact the price the consumer pays at the pump, including the cost of producing a barrel of oil. These costs fluctuate daily.