Some experts believe a tax holiday would worsen inflation and benefit gas companies more than consumers.
The White House is reportedly weighing a bill introduced by Sens. Mark Kelly (D-Ariz.) and Maggie Hassan (D-N.H.), both of whom are up for reelection in November, to suspend the federal gas tax for the rest of the year to help Americans navigate soaring prices, but not everyone is sold—here’s what you need to know. $20 billion. That’s the estimated amount the gas tax holiday would reduce gas tax revenues, according to the nonprofit Committee for Responsible Federal Budget (CRFB). The gas tax revenue goes into Highway Trust Fund, which helps cover highway construction projects and public transit. CRFB expects the holiday tax to nearly halve the fund’s revenue this year should it take effect. The federal gas tax has been 18.4 cents per gallon since 1993. The holiday tax could result in “even higher rates” of inflation next year after the policy ends, the CRFB said.
